Service Provider (Independent Contractor & Vendor) Process
NOTE: All proposed Service Provider engagements must be reviewed and approved BEFORE engaging the individual or company, to ensure proper classification and payment. If you want to pay any individual or company for services, start by filling out the Employee or Service Provider Determination Form. See below for specific information.
Independent Contractors (ICs)
An independent contractor (IC) is a type of service provider (individual, sole proprietor, single-member LLC, partnership, or LLC-P). If you wish to hire an IC, please follow the process detailed step-by-step in the Service Provider Engagement Procedure.
As a first step, fill out theEmployee or Service Provider Determination Form.
TIP: You can fill out the Employee or Service Provider Determination Form before you identify the specific individual you want to hire. This way, HR can approve the position as an IC position beforehand. Once the position has been approved and you have identified the individual you'd like to work with, then you can fill out the Service Provider Eligibility Form to get the individual approved as the IC to fill the position.
Once the contract is executed and the work has been completed, you can submit their invoice via the Digital Mailroom. If you submit via email (highly recommended), you will receive a confirmation of the submission as either accepted or rejected. Please make sure the invoice lists "Bill To: The New School" and your name so the invoice is correctly routed to you.
If you need to modify an IC contract, see IC Contract Modification.
IC Status Updates
Here's a quick guide to understanding & knowing where your IC request stands:
Step 2 | Form Completion
- Complete the Employee or Service Provider Determination Form.
Step 3 | Role Evaluation
- IC Compliance team reviews the work being done and will approve or deny the service provider role.
- You will receive email updates with step 3 from HR Help. Any updates on step 3 should be requested from hrhelp@newschool.edu.
Step 4 | Provider Evaluation
- IC Compliance team reviews your requested provider for eligibility and approves or denies your provider.
- You will receive email updates with step 4 from IC Compliance. Any updates on step 4 should be requested from ICCompliance@newschool.edu, but we advise to wait at least a week after receiving the step 4 notification before following up for a status update on step 5 (below).
Step 5 | Supplier Registration
- Your approved service provider will be sent a supplier registration. Step 5 is often a point of delay if suppliers do not complete the supplier registration. We recommend emailing your IC to keep a lookout for the supplier registration request from our procurement team (eprocurement@newschool.edu).
- Any updates on step 5 should be requested from ICCompliance@newschool.edu.
Step 6 | Contract Out for Signature, & Contract Executed
- After the supplier registration is complete, IC Compliance moves your request into a contract request form on MyNewSource. You will be notified by email from IC Compliance when the contract is sent out for eSignature. We advise sending your contractor an email to keep an eye out for a DocuSign prompt from our New School eProcurement team.
- At this point moving forward, all email updates will come from eprocurement@newschool.edu. You can verify the status of your contract by using the link to the contract in your notification email. You can also check your Contracts homepage in MyNewSource.
- Contract Request Approvals can be viewed by both formstack submitters and hiring managers
- In-Progress Contracts (CN#....) can be viewed only by hiring managers and requested stakeholders
- Your next email notification will be from our New School eProcurement team that your contract is executed. Once your contract is executed, you can begin work with your IC and send the invoice for payment.
Reminders
- The minimum payment for an IC is $250. If the IC fee is over $10,000, additional approvals may be required.
- An employee cannot also be an independent contractor and is not eligible for independent contractor status within the same calendar year.
- Faculty cannot hire themselves or other faculty as ICs. Instead, full time faculty can be paid via supplemental pay. Part time faculty can be paid via an MOU. Please reach out to Parsons Operations (parsonsops@newschool.edu) to start these process well in advance of any work taking place.
- A graduating student who has worked as an employee (RA, etc.) within the same calendar year cannot be hired as an IC. They have to be hired as Temporary/Miscellaneous Employees (Temp/Misc.).
- If the IC is international, we may need to take out taxes (up to 33%) depending on the tax treaty between our countries. Accounting will verify this.
Vendors
A vendor is a type of service provider. You can work with a vendor for services or goods.
Services
If you wish to work with/pay a vendor for services and you do not know if they are classified as a vendor (corporation, LLC-C, or LLC-S), please follow the process detailed step-by-step in the Service Provider Engagement Procedure. As a first step, fill out theEmployee or Service Provider Determination Form.
If you wish to work with/pay a vendor for services and you know are classified as a vendor (corporation, LLC-C, or LLC-S), please proceed with a Contract Request Form in MyNewSource.
Once the vendor is approved, you can submit their invoice via the Digital Mailroom. If you submit via email (highly recommended), you will receive a confirmation of the submission as either accepted or rejected. Please make sure the invoice lists "Bill To: The New School" and your name so the invoice is correctly routed to you.
Goods
If you wish to work with/pay a vendor for goods, this process routes to the standard Contract Request Form in MyNewSource, Credit Card Policy, and guidelines for purchase orders.
Temporary/Miscellaneous Employees (Temp/Misc.)
If the individual you want to work with does not qualify as a service provider per the above process, you may hire them as a temp/misc. employee.
Please reach out to parsonsops@newschool.edu with any questions.