Independent Contractor (IC) Overview & Guidelines

It is expected that The University of Texas at Austin activities will be carried out to the maximum extent possible by using the services of regular and temporary employees. However, independent contractors (ICs) may be used when the necessary services cannot be provided adequately by regular or temporary employees within the scope of their employment or in emergency temporary circumstances.

Employee or Independent Contractor?
This is the high-priority, critical question as it pertains to whether the proposed vendor is an employee or independent contractor (IC). As of Sept. 1, 2018, a new university policy states the importance of confirming that the correct classification is made before you make a promise to pay for rendered services on behalf of The University of Texas at Austin. 

These changes are a result of findings published in a 2017 internal audit that indicated issues with the APS / PBS (Authorization of Individual Services) form and the non-employee/IC payment process, and an absence of related clear policies and procedures. The audit also specified that the non-employee/IC acquisition process was not compliant with the university’s Purchasing and Contract policies.

New Policy and Guidance
A standardized process now provides current non-employee/IC payment guidelines for campus-wide adoption beginning in fiscal year 2018-19. And, these changes are now in effect:

Note: In addition to non-employee independent contractors, eliminating the APS/PBS will impact how we pay current UT employees who are employed full-time and are working sporadically for another department.  Beginning Nov. 1, these will be processed in Workday as additional jobs and will be subject to hour (120 hours) and payment caps ($25,000) each fiscal year. For additional information, please see the Aug. 17 IC town hall presentation here and the additional employment guidance at https://workday.utexas.edu/preparing-for-Workday . Please contact your SWS HR Consultant if you have additional questions specific to this change.

Frequently Asked Questions