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Carefully review new Scope of Work (SOW) form, procedures

A new PSC Procedural Statement provides important guidance on the Scope of Work (SOW) process. SOW review must be completed before hiring an individual/sole proprietor who operates under a Social Security number. There is also a revised SOW form on the PSC Forms page, both are effective Jan. 1, 2015.                                                 

Employee Services reviews the completed SOW form to decide if the service provider will be performing the work as an independent contractor. Service provider classification determines whether payment is made through the PSC or through ES. There are significant negative consequences if an institution misclassifies service providers as independent contractors. The new procedural statement and revised SOW form are designed to address this risk.

If you work with service providers who may be independent contractors, you need to review the procedures and form carefully. In particular, note: On the SOW form, identify all costs proposed to be covered by the University. Independent contractors typically charge rates adequate to cover travel/other expenses. If not included in the service rate, these must be listed as additional costs on the SOW form and covered using the same procurement method as the service payment (i.e., Marketplace Payment Voucher or Marketplace Requisition).

Do not use other, separate procurement methods (Procurement Card, Travel Card, Marketplace Purchase Order, or Non-Employee Reimbursement form) to cover costs associated with an independent contractor.

Questions on filling out the SOW form? Contact

Questions on the PSC Procedural Statement? Contact

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