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New! SOW Form and Procedures debut in 2015

Does your department work with service providers who are independent contractors? If you answered yes, you’ll want to know about the revised Scope of Work (SOW) form.

Effective Jan. 1, there will be a new version of the Scope of Work (SOW) form on the PSC Forms page (www.cu.edu/psc/forms).  The revised form requires departments to provide more details on the work and compensation of a service provider who is an individual or sole proprietor operating under a Social Security Number (SSN) and adds language regarding expectations and limitations to the service provider’s certification statement.

It also clarifies the fact that any planned payments or reimbursements to an independent contractor must be fully documented on the SOW form and can only be issued via the payment method (Payment Voucher, Non-Catalog form, etc.) associated with the SOW form. In other words, departments cannot use the Travel Card, Procurement Card or a separate Purchase Order for expenses associated with an SOW.

All SOW forms from all campuses are reviewed by Employee Services staff to determine if the service provider will function as an independent contractor or as an employee. There are serious consequences to misclassification – which is why it’s essential for the SOW form to be complete and accurate. Colorado law (the Misclassification of Employees as Independent Contractors Act, or MEICA) penalizes employers who misclassify contractors as independent contractors – a status that makes those workers ineligible for certain benefits. Employers who violate MEICA may be fined or prohibited from receiving state funds or contracts.

You can review a draft of the PSC Procedural Statement on SOW at www.cu.edu/psc/procedures.

We’ll talk more about the SOW form in upcoming issues of Pay Roles and at the campus business partner meetings in January.

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