As of July 1, 2007, the University Standard Services Agreement (SSA) replaces the previous University Independent Contractor Agreement (ICA). In addition to the new simplified agreement, guidelines have been developed to assist with the process.
Standard Services Agreement Guidelines
- The Internal Revenue Code contains the common law rule which is used as the basis for determining whether an individual is an employee or an independent contractor.
- The University has the burden of proving that a preponderance of factors point to independent contractor status for such treatment to be allowed.
- Errors in judgment or lack of sufficient documentation may result in the levying of substantial fines and penalties against the University.
- Use the following guidelines to determine the provider's status: Employee or Independent Contractor?
- Employees - If recipient for payment of services is an employee within the current calendar year, they must be paid as an employee, not an independent contractor.
- Saint Louis University Standard Services Agreement (SSA) must be used for all independent contractor services beginning July 1, 2007. If an independent contractor wants to use their agreement, it must first be reviewed by General Counsel. Those units that have developed specific ICA templates should revise the template based on the new SSA.
- Standard Services Agreement (SSA) is not required for Corporations. One of your first questions to a potential service provider should be "are they a Corporation?" If they say yes, ask for a completed W-9 form. Confirm that they have marked the form as being a Corporation. If you proceed to do business with the Corporation, submit the W-9 with the purchase requisition or DP form and an SSA will not be required.
- A W-9 must be completed for each Provider. A W-9 is required for medical or legal services regardless of the entity type. Once completed with the first agreement, it will be retained on file in the Controller's Office.
- Agreement Period - The SSA does not have to be limited by the fiscal year or a one time service. The provision of the services outline on Exhibit A of the SSA may be a range of dates that go beyond the fiscal year or may be for multiple years.
- Multiple Service Events - If the SSA is intended for multiple service events, it only needs to be submitted with the initial DPV. Subsequent DPVs should reference the initial DPV number. Also, the official copy of the signed SSA can be obtained through WebXtender.
- Specific Service Agreements - A specific Service Agreement is available and should be used for Photography Services and for Professional Entertainers/Speakers. All other services will use the standard agreement with or without the addendum based on the type of service.
- The following payments for non-employee services generally require an SSA:
Type / Requires a SSA
- Legal Services: Sole Proprietor or a LLC Sole Proprietor
- Subject: Fee/Patient Study Standardized Patients
- Honoraria: If it does not meet the definition of Honoraria, an SSA will be required
- Corporation or LLC Corporation: Recommended