Procedure: 101-Payments to Individuals
Appendix 2-Policies for Compliance
Certification of ComplianceFPPP #31 requires a certification of compliance with FPPP #31 on all requests for payment. Your signature on the PIR or requisition is a certification that you have read FPPP #31 and the transaction is in compliance with the policy.
Exception to FPPP #31Section III of FPPP #31 states "When an institution determines an employment relationship exists, the individual must be appointed and paid on payroll unless the exception under 'Employment Procedures' is met. The exception listed under 'Employment Procedures' includes payments of less than $500 for a series of definitely predicted events to persons other than current UW System employes, full-time state employes, or students attending UW System institutions."
Part-time state employes are not covered by the exception under "Employment Procedures". In making the determination whether the individual is considered a student attending a UW System institution for the purposes of this exception, a student who is eligible for student employment falls into this category. Contact Academic Personnel for current guidelines regarding eligibility for student employment.
The term "a series of definitely predicted events" is to be taken literally. The $500 payment limit applies to any series of definitely predicted events, regardless of time period or source of funding.
UW-Madison has requested and received approval to make one additional exception to the policy. If the individual performing the service is a non-U.S. resident and the work is performed outside the United States, the individual may be paid as an independent contractor, regardless of whether an employment relationship exists.
Academic Support Services PoliciesChapter 36 of the Wisconsin Statutes gives the Board of Regents the authority to enter into contracts in order to fulfill the instruction, research, and public service missions of the University. Contracts entered into under this authority do not need to follow the state purchasing statutes found in Chapter 16 of the Wisconsin Statutes. FPPP #31 permits the use of Chapter 36 authority to obtain unique services directly in support of instruction, research, or public service (referred to as Academic Support Services), without obtaining bids or waiver of bid authority.
Before deciding if a service qualifies as an Academic Support Service, it is necessary to ascertain that the person performing the service should not be payrolled. If it is not a payroll transaction, Purchasing Services will make the final determination as to whether a service may be considered an Academic Support Service.
The requisition process must be used for all academic support service requests. A PIR cannot be used for such transactions.
FPPP #31 requires signed agreements for academic support services if the cost is $5,000 or more (excluding itemized travel). Agreements may be written at the department's option for services costing less than $5,000. Purchasing Services will generate the agreement and send it to the vendor for signature. For more information on the format of such agreements, contact Purchasing Services.
Regardless of dollar amount, Academic Support Services Agreements must be signed by an authorized contracting officer for the institution. This generally is the Director of Purchasing Services. You do not have authority to sign such agreements.
Procedure: 101-Payments to Individuals