Policy on Payments to Individuals

(Employees, Students and Independent Contractors)

Scope of Policy
This policy is designed to provide information, forms and procedures to University Departments and Personnel who initiate payments to individuals via Accounts Payable. The classification of individuals is critical for the taxation and  reporting of the payment.   All payments to individuals require two signatures, regardless of the dollar amount, according to the following guidelines:

Wesleyan employees – Payments made to Wesleyan employees via Accounts Payable are generally made when the employee requests a travel reimbursement, travel advance or reimbursement for out of pocket expenses.  All requests must be supported by original documentation, which should include the business purpose of the purchase, and signed by both the employee and their immediate supervisor.  (Note: students are not considered University employees for this purpose.)

Payments made to Wesleyan employees for services performed should go through Human Resources. 

Students – Payments to students are generally made for expense reimbursement.  Requests must be supported by original documentation and signed by a University employee and their supervisor.  (Note: students are not considered University employees for this purpose.)  Refer to the Payroll website for making payments to students for hours worked.

Non-Employees – These payments are generally made to independent contractors for services performed, honoraria, travel reimbursements or athletes and entertainers.  Requests must be supported by original documentation and signed by a University employee and their supervisor. 

If the supervisor is unavailable, Fiscal Managers may sign the documentation in the capacity of the supervisor if it is not a reimbursement to themselves or a superior.  When determining which University employee should sign for payments to non-employee individuals and students it should be someone who can certify to the following:

·         Validity of the expense – the product was received or work performed as expected

·         Accounting – the account number is appropriate with available budget

·         Compliance – the expenditure is compliant with applicable policies and regulations (e.g., payments to non US citizens, restricted accounts and grant awards)

TABLE OF CONTENTS

Click on schedule or attachment to view policy or form

Schedule A

• Employee v. Independent Contractor - Definitions
  
  Schedule A - Attachments:

1. Employee/Independent Contractor Classification Checklist (Printable Word Document)
2.W-9 Request for Taxpayer Identification # & Certification. (requires acrobat reader)

Schedule B

• Athletes and Entertainers
  
  Schedule B - Attachments:
  
  1.Form CT-588 Athlete & Entertainer reduced withholding request.
  2.Form CT-590 Athlete & Entertainer request for Waiver of Withholding.

Schedule C

• Employee Reimbursement

Schedule D

• Travel Policy

Schedule E

• Donations of honoraria, prizes or other payments