Following standard procurement processes, work with independent contractors must be initiated through a requisition in KFS and include a completed Independent Contractor (IC) form in the Notes and Attachments tab. The department should retain a copy of the completed IC form for its records.
The Service Agreement for Independent Contractors (IC Service Agreement) is the legal document that MSU Procurement uses to formalize and document the relationship between an independent contractor and the university. It is intended for use with U.S. citizens or resident aliens (copy of Green card is required) and is not be be used for transactions greater than $25,000.
IC Service Agreements are used for unique professional, or technical services that are predominantly intellectual in nature, require specialized knowledge, and are part of a specific project—not ongoing.
See MBP Section 76 for more information.
Independent contractors are required to obtain an IRS Tax EIN Number (as opposed to a social security number) to do business with MSU. The shift to IRS Tax EIN Numbers was announced to suppliers and the MSU community in late 2022.
An IC form and requisition are not required when paying honoraria, speaker, or performer fees. Payments for these specific services can be processed on a disbursement voucher (DV) through the MSU Office of the Controller along with a completed Honoraria/Speaker/Performer Checklist. See MBP Section 71 for more information.
A researcher that was once an MSU employee returns to the university to continue research on a grant funded project that they were involved with as an employee.
This individual must be paid on payroll; this would be viewed as a continuing relationship.
An individual that was once an MSU employee in an administrative role returns to the university to provide statistical and analytical services on a project. They will not be supervised or have set work hours.
This individual may be paid as an independent contractor. The nature of their work is significantly different than their role and responsibilities as an MSU employee, and they are not being supervised or directed as to how the work should be done.
A faculty member that teaches a for-credit “Concepts of Graphic Design” also does some freelance graphic design work for the department.
If approved by MSU Human Resources, this individual may be paid on payroll for their freelance work. The nature of the work is too closely related to their duties as an employee.
A department would like to contract with an individual to write articles for a publication. The writer will be working from home and setting their own work hours.
This individual may be paid as an independent contractor on an IC Service Agreement. They are working independently, and not being supervised or directed how the work should be done.