Business Expense Policy - 10. Other Business Expenses

The reasonable purchase of goods and services necessary to university business should be made using the approved purchasing mechanisms or vendors the university pays directly.

Independent Contractors and Consultants

The university allows departments to engage the services of independent contractors or consultants when the needed skills or expertise are not readily available within the university. The classification and reporting of payments to individuals who provide services to the university as independent contractors and consultants are subject to specific federal regulations. The tax and other requirements appropriate to their designation differ from those applied to individuals classified as employees.

Incorrect classification of a service provider as an independent contractor may subject the university to significant tax penalties and other risks. Under no circumstances are employees’ personal funds or university credit cards to be used for payments of independent contractors and consultants. All such payments are required to go through proper university channels, be preapproved by IC Compliance with payments processed through Accounts Payable (refer to university’s Independent Contractor policy).

Guest Speakers, Artists, and Honorariums

University funds may be used for an honorarium for guest speakers or artists as a gesture of appreciation. The university requires that such expenses be reasonable and made under conditions that do not create a significant likelihood for the gesture to be deemed as a “disguised” payment.

Honorariums are considered taxable income to the individual receiving the benefit. All honorariums should be paid using a university issued check from Accounts Payable.

Furniture and Equipment

All purchases of furniture and equipment become the property of the university and departments are responsible for tracking and safeguarding these assets. Purchases of all furniture and equipment must be made through university preferred vendors. Refer to the Purchasing website for policy, procedures and listing of preferred vendors.

Furniture and equipment purchases on sponsored projects are subject to funders’ terms and conditions.

Home Office Costs

University funds may be used for home office costs incurred by certain individuals who are authorized to work from home. Home office equipment purchases must follow general equipment purchase guidelines, be necessary to meet official job duties, and be preapproved by a Dean or Vice President.

Appropriate justification and substantiation of home office expenses is required before university funds can be used.

Employee Recruitment

Recruitment expenses such as moving allowances, search firms, job postings, and advertising expenses are managed through the Human Resources department (HR). Contact HR or refer to their website for additional information.

Publications, Subscriptions, Memberships and Dues

Membership or professional dues or fees can only be considered business expenses when obtained and primarily used for university purposes. A subscription can also only be considered a business expense when it is specifically related to the subscriber's job function.

Telecommunication Devices and Charges

When appropriate, The New School provides employees with wireless devices to help employees carry out their job responsibilities and advance the mission of the university. All such devices should be obtained through the Purchasing department. Refer to the Wireless & Cellular Device Policy for additional information.

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