Financial Services Procedure 4 – Contracted Personal Services/Honoraria

General

The CONTRACTED PERSONAL SERVICES and HONORARIA forms, BANCPS and BANHON, must be utilized by all university departments, schools, and offices to pay for the services rendered by an independent contractor or individual.

Form BANCPS – Contracted Personal Services

The Contracted Personal Services form (BANCPS) is initiated by the contracting office to issue payment to an independent contractor hired to perform a specified service. An independent contractor is defined in Policy No. 7.4. Also, refer to the following for additional guidance prior to entering into an agreement for personal services or professional services:

Contract Services Procedures/How-tos

Contract Services Forms

Form BANHON – Honoraria

An honoraria/honorium is an ex gratia payment (i.e., a payment made without the giver recognizing themselves as having any liability or legal obligation) made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required. (A payment to a UNCG employee must not be generated on this form — it must be paid through HR/Payroll.)

The Honoraria form (BANHON) is initiated by the contracting office to issue payment to an individual for services rendered.

The contracting office must select the type of payment, the status of the payee, and complete all of the Personnel Data, the Program Data, and the Funds and Amounts To Be Charged sections except for the shaded areas.

Upon completion of the BANCPS and/or BANHON, attach any invoices if applicable, and submit the completed forms to Accounts Payable for processing.

Upon receipt of the completed BANCPS and/or BANHON forms, Accounts Payable will generate a check and mail it to the address listed in the Personnel Data Section.


Preparation of Forms BANCPS, Contracted Personal Service and BANHON, Honoraria

Personnel Data

Program Data

Funds & Amounts to be Charged

Departmental

NOTE:

THE INITIATING DEPARTMENT MUST COMPLETE THE UNSHADED AREAS AND THEN SEND THE FORM TO THE PLACE LISTED IN PROCEDURE 2.4.

Sections to be Prepared by the Initiating Department (Contracting Office)

SELECT AS APPLICABLE: Check the appropriate boxes for type of payment.

SELECT ONE: Check the block for “US Citizen or Res. Alien” or “Non-Res. Alien”. If non-resident alien box is checked, forms NRA 001 and IRS Form 8233 must be attached. Websites for these forms are as follows:

NRA 001

IRS Form 8233

PERSONNEL DATA

NAME: Type in first, middle and last name in the specified fields. The name typed in these fields must match the TAXID (SSN) of the payee.

TAX ID NUMBER: Enter the recipient’s social security number. If the recipient is a foreign citizen, obtain a W-8 from Accounts Payable for the recipient to complete and sign.

DATE: Enter the date that the form is prepared by the contracting department.

THE MAILING ADDRESS MUST BE THE PERMANENT MAILING ADDRESS

PERMANENT MAILING ADDRESS: (Line1): Enter the first line of the permanent street address of the recipient.This is the location where the check will be mailed to the payee. The mailing address must be the same aas the permanent address of the payee. If the check is to be returned to the Department for distribution, indicate this in red on the top, left side of the printed form.

PERMANENT MAILING ADDRESS: (Line 2): Enter the second line of the permanent street address of the recipient.

CITY: Enter the name of the city in which the recipient maintains a permanent residence.

STATE: Enter the abbreviation of the state in which the recipient maintains a permanent residence.

ZIP: Enter the zip code of the area in which the recipient maintains a permanent residence.

COUNTRY: Enter the country, if not the United States, in which the recipient maintains a permanent residence.

PROGRAM DATA

PROGRAM PARTICIPATING IN: Enter a brief description of the program on which the recipient will be performing the contracted personal service or honoraria.

DATES OF PARTICIPATION – BEG: Enter the beginning date the actual contracted personal service or honoraria was performed by the payee in the following format, mm/dd/yyyy.

DATES OF PARTICIPATION – END: Enter the ending date the actual contracted personal service or honoraria was performed by the payee in the following format, mm/dd/yyyy. Contracted personal services cannot be prepaid.

BASIS OF FEE: Select the rate method and number of days based on the rate chosen for payment. The rate method should correspond to the number of days the contracted personal service or honoraria performed. Type in dollar amounts for the rate method and number of days applied to the rate method.

TYPES OF SERVICES RENDERED: Enter the activity or type of contracted personal service or honoraria performed by the payee.

CONTRACT TITLE: Enter title of contract from the invoice; if provided by the payee; otherwise, the title is created by the department. This field is limited to 20 alphanumeric characters. (This field does not apply to honoraria.)

CONTRACT NUMBER: Enter invoice number from the invoice; if provided by the payee, or create a number applicable to the contracted personal service. This field is limited to six alphanumeric characters. (This field does not apply to honoraria.)

CONTRACT START DATE – MM/YY: Month and year in which the contracted personal service begins. This date can be before or the same month and year as the Date of Participation – BEG field. (This field does not apply to honoraria.)

CONTRACT START DATE – MM/YY: Month and year in which the contracted personal service ends. This date can be after or the same month and year as the Date of Participation – END field. (This field does not apply to honoraria.)

SIGNATURE OF PAYEE: The payee (independent contractor or individual performing the service) must sign this line. By signing, the payee certifies the he/she understands the tax implications of this payment. The BANCPS and BANHON forms cannot be processed without the payee’s original signature on this line.

FUNDS & AMOUNTS TO BE CHARGED

INVOICE DATE: Enter the invoice date from the invoice, if provided by the payee. The completion of this field is not required by Accounts Payable for the payment to be processed.

VENDOR INVOICE: Number can be the same as the contract number or create a number applicable to the Department title or contracted personal service or honoraria rendered. Ex: ACCT001, NUR686.

DESCRIPTION: Departments may enter a contracted personal service and/or honoraria reference or description in the field to identify the transaction. The completion of this field is not required by Accounts Payable for the payment to be processed.

FUND: Enter the six-digit index to which the payment will be charged.

ACCOUNT: Select the account code to be charged on BANCPS only. The account code on BANHON cannot be changed.

AMOUNT: Enter the amount of payment for the contracted personal service or honoraria. This amount should have a direct correlation to the Basis of Fee field amount listed in the PROGRAM DATA section of the form.

SIGNATURES

DEPARTMENTAL APPROVAL: Signature(s) of appropriate person(s) as outlined in step 2.3 and date. This signature certifies that the payee has satisfactorily rendered the services for which he/she is being paid, and if the payee is an independent contractor, he/she is properly classified as an independent contractor in accordance with University Policy #7.4.

PREPARED BY: The person preparing this form should sign or type their name and enter the date on this line.

SCHOOL/DEPARTMENT: Enter the school or department requesting the payment and a contact phone number.

C&G APPROVAL: Contracts and Grants must approve if being paid from a grant fund.

Sections to be prepared by Accounts Payable

FUNDS & AMOUNTS TO BE CHARGED

DOCUMENT NUMBER: The document number will be assigned sequentially by the Accounts Payable.

VENDOR NUMBER: The vendor number will be generated by the Banner system.

TRANSACTION DATE: The date of transaction.

ADDR C/S: Enter RT for remit to address.

DUE DATE: The due date is entered only on invoices that are dated in the future.

BANK CODE: The two (2) digit number that is assigned to this transaction. This code represents the bank account number that must be charged when the check is prepared.

ACCOUNTING

1099: The alpha code to designate the type of payment, if taxable.