TTC's Policies and Procedures > Procurement and Inventory Control > 10-2-7 Consultant Services
10-2-7 Consultant Services
TITLE NUMBER APPROVED DATE
CONSULTANT SERVICES 10 - 2 - 7 2-28-97
 
BASED ON POLICY NUMBER AND TITLE
     


  1. The requestor communicates the need for a consultant to the Procurement Department via requisition on the College on-line purchasing system, providing the following information:

    1. Consultant's full name, address, and phone number;
    2. Consultant's Federal Identification number or Social Security Number;
    3. The scope of work to be performed including where and when the work is to be performed;
    4. Total amount to be charged by consultant including all travel and associated expenses;
    5. If total remuneration to the consultant including travel and associated expenses is expected to exceed $2500, then the requestor forwards specification to the Procurement Department for bidding purposes.

  2. The requestor enters the requisition and the appropriate Budget Administrator approves the requisition. Additional time to issue a Request for Quote is necessary for requests exceeding $2500, as provided in TTC Procedure 10-2-3, "Purchase Requisition, Order Processing."

  3. The Procurement Department secures any other approvals necessary (e.g., for federal funds) through electronic mail. The Procurement Department retains electronic mail approvals as backup in the Procurement Department with procurement documentation.

  4. The Procurement Department procures services in accordance with the S.C. Procurement Code, assigns a contract/purchase order number on the purchasing system and prepares a combination purchase order/contract which is forwarded to the Consultant for signature.

  5. The Procurement Department notifies requestor if the request for a consultant is not approved.

  6. After the consultant has completed services, the requestor authorizes payment for the services.

  7. Reimbursement for Services: Accounts Payable processes payment to the consultant upon receipt of an invoice and an electronic mail payment authorization from the Budget Administrator. The consultant must complete IRS Form W-9 stating his/her status as sole proprietor, etc. before Accounts Payable will release payment.

  8. Accounts Payable mails payment directly to the consultant, unless otherwise indicated on the payment release authorization.

  9. The Finance Department reports consultant fee earnings of $600 or more on IRS Form 1099 as Miscellaneous Income at the end of the calendar year. The Finance Department sends this information to the consultant and to the Internal Revenue Service.

  10. Secondary Employment:

    When a request involves the services of an employee of the State of South Carolina, the employee should not perform services until all appropriate personnel have provided signatures of approval on TTC form T3-24, "Request for Secondary Employment." (Refer to TTC Procedure 8-14-1, "Secondary Employment.")

    The employee's home or primary agency continues to pay the employee's salary; the requesting agency (i.e., TTC) pays the individual for the consultant services. If the Finance Department pays the consultant fees to an employee through Accounts Payable and not through Payroll, the individual will receive a Form 1099 at the end of the calendar year (i.e., the College will not withhold income tax).

    If the College pays a corporation rather than an individual for consultant services, then the secondary employment procedures are not necessary. This situation, of course, requires that all Internal Revenue Service criteria have been met for determining whether there is an employee or independent contractor relationship.

Updated November 30, 2007

 

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