Special processes are required when professional services are to be performed by individuals or sole proprietors (versus corporations or other business entities) at the University of Texas.
For an overview of the university's guidelines for Independent Contractors and Authorizations for Professional Services (APS), seeIndependent Contractor (IC) Overview & Guidelines: http://www.utexas.edu/business/accounting/hbp/12_contractors/contractors2.html.
The Professional Business Services (PBS) document in Point Plus is used to electronically authorize unique services provided by an individual or sole proprietor.
When a PBS cannot be used, continue to use paper APS forms, i.e.:
- When a 26-account must be used.
- When authorizing multiple individuals to receive fees and/or travel reimbursements during a specific event. (This is referred to as a blanket APS and must include a list of all participants.)
- When authorizing direct-billed travel expenses for a group.
- When authorizing direct-billed travel expenses for an individual without a vendor record if no reimbursement will be made to the traveler directly. (When no fee for services is authorized, a *DEFINE VE5/RTA is used to authorize travel expenses for an individual who has a vendor record.)
- When authorizing taxable travel that includes non-employee travel reimbursement without required receipts, spouse or family members' travel, moving expenses, or house-hunting trips.
New Policy and Guidance
A standardized process now provides current non-employee/IC payment guidelines for campus-wide adoption beginning in fiscal year 2018-19. And, these changes are now in effect:
- Eliminating the APS/PBS form (but not for university employees)
- Services will require a purchase order (PO) or business contract (unless exempted from procurement justification process)
- Non-employee/IC payment process must adhere to current Purchasing and Contract policies
Note: In addition to non-employee independent contractors, eliminating the APS/PBS will impact how we pay current UT employees who are employed full-time and are working sporadically for another department. Beginning Nov. 1, these will be processed in Workday as additional jobs and will be subject to hour (120 hours) and payment caps ($25,000) each fiscal year. For additional information, please see the Aug. 17 IC town hall presentation here and the additional employment guidance at https://workday.utexas.edu/preparing-for-Workday . Please contact your SWS HR Consultant if you have additional questions specific to this changeIndividual APS paper form: http://www.utexas.edu/provost/policies/aps/APS.pdf .
Employee/Independent Contractor Classification Checklist (EICCC):http https://www.edbutdirect.utexas.edu/educationapps/assetsservices/files/KHE/facStaffForms/EICCC.pdf .
Upon completion of and final approval of the APS form, the professional service provider can proceed with work.
eiccc/ .
Use a VP2 to process payment after work is completed.
Non-Employee payment information: Non-Employee Reimbursement/Payment – About