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Paying U.S. Resident Contractors

Use the steps below to engage and pay your US Resident Independent Contractor.

Engaging a U.S. Resident Independent Contractor

1. Department sends forms to individual.

Before any contracted services begin, the prospective independent contractor must be provided a Vendor Code Request for Individuals and the Northwestern University Contracted Services Agreement. (These forms do not need to be completed for a reimbursement, a research subject fee, a payment to a consulting firm (e.g. a vendor with a Federal Employer Identification Number).

2. Department reviews grant requirements.

If a sponsored project is to be charged for the contracted service fees, the prospective user of the independent contractor or consultant must be certain that any requirements applicable to the grant or award have been met prior to entering into a contracted services agreement.

3. Contractor returns Vendor Code Request and Contracted Services Agreement.

If the contractor has not previously been paid as a contractor by Northwestern, the contractor completes the Vendor Code Request for Individuals and the Northwestern University Contracted Services Agreement, returning them to the Northwestern representative engaging the contractor. If the contractor has previously been paid as a contractor by Northwestern, only the Northwestern University Contracted Services Agreement is required. The Northwestern representative forwards the Vendor Code Request to Accounts Payable, and holds the Agreement until the services are completed.

Paying a U.S. Resident Independent Contractor

1. Contractor provides invoice.

After the completion of the work, the contractor sends an invoice to the representative who engaged the contractor.

2. Contractors completes Travel Expense Report.

The independent contractor will be required to complete the Travel Expense Report if reimbursements were part of the original agreement between the department representative and the independent contractor. Original receipts must be attached to the Travel Expense Report.

3. Department representative completes payment information.

The department representative completes the payment information, documenting that the work is complete and the contractor is to be paid according to the policy. The date of completion for contracted services must be prior to Northwestern's approval date. If expenses are to be reimbursed, enter the amount on the Contracted Services Agreement, an attach the Travel Expense Report with original receipts.

4. Secure required approvals.

For sponsored project contractors or consultants, the Principal Investigator must sign and date the Contracted Services Agreement. The Director of the Office for Sponsored Research (OSR) must sign and date the form, and this signature will be obtained when the Agreement is received by Accounting Services for Research and Sponsored Programs (ASRSP).

For non-sponsored project contractors or consultants, the hiring representative must sign and date the form and, once received by Accounts Payable, the Controller's signature will be obtained.

5. Department representative initiates payment.

Enter the payment request in NU Financials.