Request for Special Payment
Request for Special Payment is used for payment of personnel services not under a contract such as short-time services from independent contractors, consultants, musicians, entertainers, or professional and academic personnel (visiting lecturers, participants in graduate seminars and colloquia, speakers for special functions, consultants on special projects, etc.), contract payments in lieu of an invoice, moving allowance, and any other special payment for goods or services rendered for the university not listed above.
A contract is required when the cost of the services to the department exceeds $5,000 per engagement or is expected to exceed $12,000 in a 12-month period. An informal written agreement may be entered into and maintained in the department when the cost of the services to the department does not exceed $5,000 per engagement nor is expected to exceed $12,000 in a 12-month period.
If payment is not being made via contractor's invoice, a Special Remittance Form (T-27) may be used for payment of goods and/or services. The following should be included on the T-27:
- Date and amount of request
- Contractor's Name, professional title, and home address
- Name and address of contractor's present employer
- Contractor's social security number or federal employer ID number
- Description and dates of services performed
- Unit of time and rate of pay on which the requested compensation is based
- Name and number of cost center/WBS element to be charged
- Signatures showing the required campus or unit approvals
- University contract tracking number (this number appears on the upper right corner of the contract review form)
Personnel Services without a Contract:
A formal contract is not required when the cost of the services to be provided is $5,000 or less. Individuals who provide a service to the University must be classified as either an Independent Contractor or an Employee. To determine if a worker is an employee or independent contractor, the University must apply the Internal Revenue common law test of control. Under this test, if the University has the right to control and direct what a worker does and how he/she does it, an employee relationship exists. If there is no control, the worker can be classified as in independent contractor.
If no invoice is provided, a Special Remittance Form (T-27) must be completed and submitted to FIO for processing as stated above and perhaps a W4 and I-9 depending upon the situation (Follow instructions on the back of the T-27 form).
Please note if the independent contractor has never been paid by the University, a
W-9/Minority Status form should be completed and attached to the T-27 before sending to FIO for processing.
If payment is made to a Non United States Citizen, in order to be compliant with the Federal Government, the following Payment to a Non United States Citizen form should be completed and sent to FIO for processing.
Moving Allowance: (New Form Effective 09/01/2011)
The university may provide a moving allowance for a newly hired faculty or staff member to move from their former residence to their new residence. To be eligible to receive a moving allowance and to comply with guidelines published by the Internal Revenue Service, the new residence of the individual must be at least 50 miles from the former residence.
Effective September 1, 2011, in an effort to streamline the method of processing moving allowances and to ensure compliance with Internal Revenue Service guidelines, the new policy no longer requires a written request and a T-27 to be submitted to the Treasurer's Office. Instead, of all of the approvals and the necessary information has been combined into a new form titled "Moving Expense Allowance Request T-5".
In addition to streamlining the process, applicable federal taxes will be withheld from these moving allowances. The allowance will be reported as taxable income to the employee and applicable withholding taxes will be withheld from the payment. The new T-5 form will assist departments and employees in identifying the amount that will be withheld and the net amount that will be paid to the employee. Department will be charged the matching amount for social security and Medicare taxes. This is required by the Internal Revenue Service. Employees may be eligible to recover the income tax withheld from their allowance by filing the appropriate IRS forms with their individual tax return. IRS publication 521 should be consulted for further information and this is also referenced in the new policy.
Once the department decides to process a moving allowance for their new faculty or staff member, a Moving Expense Allowance Request (T-5) should be completed and forwarded to FIO for processing. Please visit Fiscal Policy No: FIO 450 Moving Expenses for more information.
For more information about Special Payments and Moving Allowances, please visit the UT Policy & Procedures Web Page.
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