Budget, Payroll and Fiscal Analysis

An Independent Contractor Agreement and Employee vs. Independent Contractor Checklist (ICA) is a paper form that is used to process payments to an individual or business entity. The forms above are to be completed by the contracting department and routed for pre-approval before the contractor signs the agreement. Once your Independent Contractor Agreement is pre-approved, it will be returned to the contracting department so the contractor's signature can be obtained.

Do Not Use an ICA -

1. To compensate a TAMIU employee or an employee of the A&M System.
2. To pay duties that are typically performed by an employee.

Important Information -

1. Before services are performed: Prepare the ICA, route for approvals from the Dean/Director, VP and Budget & Payroll before the contractor signs the ICA. This gives approving offices the opportunity to address any concerns beforehand.
2. The preparer should complete the bottom section of the ICA – Preparer name, , and paying account, date check needed. Incomplete ICAs or outdated ICA forms will be returned to the preparer.
3. Approved ICA that are sent to the Office of Budget, Payroll & Fiscal Analysis have a minimum of a 5-business day turn around for the ICA to be reviewed and fully pre-approved. Contractors are not to be sent ICAs without the approval of the Office of Budget, Payroll & Fiscal Analysis and services should never be started without a fully signed ICA.
4. All ICA payments are processed through Accounts Payable, and the Contractor will be issued a 1099/1042-S for that calendar year.
   
   

Procedures -

Payment for Independent Contractor - Procedures

This is a detailed list of the procedures and process involved with processing an ICA from pre-approval to final payment.

ICA Forms -

Once a fully pre-approved contract is returned to your department, the forms below are to be completed by your contractor.

1099/1042-S Misc. Income Agreement for Independent Contractors

A new 1099/1042-S Misc Income Agreement is required for each ICA. ICAs that are missing this form will not be paid.

TAMIU Hold Harmless Agreement

This form is also required for each new ICA if indicated on the pre-approval email. For questions pertaining to the Hold Harmless Agreement, please contact Saftey@tamiu.edu.

DustyBuy Vendor Set Up -

For vendor set up in DustyBuy, your contractor will also need to complete and submit one of the following forms -

Substitute W-9/Vendor Direct Deposit Form - Used to set up a U.S. vendor in DustyBuy. A new Substitute W-9/Vendor Direct Deposit Form should be submitted only if the vendor needs to make changes to their existing vendor information or direct deposit.

For Foreign Vendor Set-Up in DustyBuy, please click here.