To assure compliance with Massachusetts Independent Contract law the University has implemented the following process. In most cases there are 4 documents that are required.
- Certification Form
- Purchase Order
- Contract (If payment amount is >= $10,000)
NOTE: If payment for the whole project is under $1,000 use a Direct Pay form and submit to Accounts Payable. A W9 will be required in all instances.
The following are the guidelines a Unit/Department must follow:
- Unit/department head completes the Employee/Independent Contractor Certification Form for all payment instances.If the Certification Form establishes that the individual satisfies the requirements for an independent contractor, then follow from step 2 forward. If the Certification Form results indicate that the individual does not qualify as an Independent Contractor then please see the Other Options Section.
- If the payment amount is >= $10,000, then the unit/department prepares a Contract/Professional Services Agreement to govern the relationship. A template and contract procedures can be viewed on Legal Counsels website or by clicking here (Contracts and Transactions tab). If the payment amount is under $10,000, then no contract is required please skip to step 4, creating a requisition. (Note: If the individual service provider has been paid or will be paid in excess of $10,000 within one fiscal year, then a contract should be created.)
- If agreement is under $10,000, then please submit the completed Employee/Independent Contractor Certification Form and Professional Services Agreement to Procurement Services.
- Submit a purchase requisition in Banner to Procurement Services. A purchase order will be issued upon confirmation that step 3 has been completed. Unit/Department needs to send all required documents to Procurement Services including certification form, Professional Service Agreement and W-9 (new vendors only). If the payment amount is under $10,000 Unit/Department needs to include a detailed scope of work in the purchase requisition description as well as send to Procurement Service the certification form and W-9 (new vendors only). For payments amounts under $10,000 the purchase order will be sent to the payee with the University Terms and Conditions. All others will not receive a university purchase order. In both instances the Unit/Department needs to send the consultants invoice to Accounts Payable with the Purchase Order number on the invoice.
- An alternative to the Professional Services Agreement is to "payroll" the independent service provider with Northeastern University's temporary help agency. Another option is Temporary Non-Student Employee status (a solution for certain short-term assignments). Call Laura Brock in Human Resources for details on either option.
The required forms can be found in the forms section of this website.