Policy: VII.R.12x (inactive)
Issued: November 24, 1993
Owner: Assistant VP for Finance and University Comptroller
CONTRACTUAL TEACHING SERVICES AND NON-TEACHING
This policy describes the general guidelines for the use of contractual teaching services and non-teaching academic consulting.
2.0 Policy [Top]
UNDER NO CIRCUMSTANCES should the hiring of Individual Contractual Teaching Services, Contractual Teaching Services, or Non-Teaching Academic Consulting be used to circumvent established procurement or human resource policies and procedures.
Organizations performing either contractual teaching services or non-teaching academic consulting normally fall into one of three categories:
- Institutions of higher education,
- Public agencies, or
- Not-for-profit vendors.
In any of these instances, the department may use Procedure 7-62 to pay for the services. However, all transactions with "for-profit" vendors MUST BE PROCESSED AS PROCUREMENTS through Purchasing and Materials Services.
As related to either individual contractual teaching services or non-teaching consulting services, the University will REIMBURSE TRAVEL EXPENSES ACCORDING TO NORMAL STATE GUIDELINES AND LIMITS.
Payments will be made after-the-fact for both individual contractual teaching services and non-academic consulting services. PREPAYMENTS FOR THESE SERVICES ARE NOT PERMITTED.
2.2 Individual Contractual Teaching Services
Part-time teaching engagements at the University, for most instances, are to be treated as employee/employer relationships. Instructors for such assignments will be placed onto the University's payroll for the duration of the course.
Policy VII.R.11, "Consulting."
Exceptions to this policy will be permitted only if the following three conditions are met:
- The course is sufficiently short in duration (not greater than seven calendar days), AND
- The instructor does not meet the employer - employee test, AND
- The course is to be a one-time presentation only.
If the instructor or course qualifies as an exception, the department should follow Procedure 7-62, "Authorizing Contractual Teaching Services and Non-Teaching Academic Consulting." In this way, the instructor will be paid as a consultant, not as an employee.
The University pays for individual contractual teaching services and contractual teaching services by preparing a COMBO form (Procedure 6-4) and the attachments (Procedure 7-62).
LIMITED PURCHASE ORDERS (LPOs) CANNOT BE USED TO PAY FOR ANY TYPE OF CONSULTANT.
2.3 Non-Teaching Academic Consulting
A non-teaching academic consultant is an individual who provides research or other academically related services on a short-term basis to the University.
Training of University faculty and staff does not qualify as a non- teaching academic consultant, nor does entertainment, the repair of equipment, or the development of software.
A non-teaching academic consultant must have demonstrated expertise in the discipline for which s/he is providing the service. Such expertise may be established by advanced academic degrees, published works and other accomplishments in the individual's discipline.
The services are normally purchased on a sole source basis, provided the chair of the academic department certifies that:
"This is the only practicable source from which the University can acquire these services at this point in time."
Non-teaching academic consultants are most often individuals, institutions of higher education, or public agencies. However, such services can be provided by not-for-profit organizations. Non-teaching academic consultants are not normally from for-profit firms, but if so, are procured through CAPPS similar to non- academic consultant services (using Procedure 7-11).
Non-teaching academic consultants cannot be employees of the University of Virginia during the period of service.
NOTE: The use of a particular non-teaching academic consultant MAY NOT BE REQUIRED AS A CONDITION for any purchase, gift, or other procurement.
NOTE: Use of a non-teaching academic consultant is limited to circumstances where long term employment of an individual is not feasible, desirable, or practical.
NOTE: The use of non-teaching academic consultants are not meant as nor should be used as a means to bypass the employment requirements of the University.
2.4 Foreign National Independent Contractors, Honoraria, and Royalty Recipients
Resident Aliens ("Green" Card and Substantial Presence Test Resident Aliens) are handled in the same manner as U.S. citizens. No withholdings will be performed, and earnings will be reported on Form 1099.
Nonresident alien payments for contractual services, honoraria, and royalties must have taxes withheld at a rate of 30%. Nonresident alien independent contractors, honoraria and royalties recipients may be entitled to receive treaty benefits if they are from one of the following countries:
Australia, Austria, Barbados, Belgium, Canada, China, Commonwealth of Independent States (includes Armenia, Azerbaijan, Belarus, Kazakhstan, Krygyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan), Cyprus, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Italy, Jamaica, Japan, Republic of Korea, Luxembourg, Malta, Morocco, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Romania, Spain, Sweden, Switzerland, Trinidad and Tobago, Tunisia, and the United Kingdom.
- Policy IV.G.2, "Taxation Instructions for Foreign National Recipients of Scholarships/Fellowships."
- Policy XII.F.1, "Payroll: Foreign National Individuals."
NOTE: Consultant payments to foreign national individuals may be limited by their type of visa.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]