Request for Special Payment is used for payment of personnel services not under a contract such as short-time services from independent contractors, consultants, musicians, entertainers, or professional and academic personnel (visiting lecturers, participants in graduate seminars and colloquia, speakers for special functions, consultants on special projects, etc.), contract payments in lieu of an invoice, moving allowance, and any other special payment for goods or services rendered for the university not listed above.
A contract is required when the cost of the services to the department exceeds $10,000 per engagement. After the contract is processed per policy, payment to the contractor can be made via contractor's invoice or a Special Remittance Form (T-27). The following should be included on the T-27:
A formal contract is not required when the cost of the services to be provided is $10,000 or less. Individuals who provide a service to the University must be classified as either an Independent Contractor or an Employee. A general definition of an employee and independent contractor are listed below:
Employee: An individual in an employment situation in which the employer has the right to control and direct the individual with regard to the end result as well as the process by which the end result is accomplished.
Independent contractor: Independent contractors are individuals or firms that (1) are engaged to perform specific services for a stated fee or contracted amount, (2) may provide services to the public, and (3) are subject to university control only as to the end results, and not the methods of obtaining them. An independent contractor typically has a separate workplace, is not supervised, and has a particular, often specialized, set of skills. The University does not routinely enter into written agreements with employees, but regularly enters into contracts with independent contractors.
This form should be completed before the vendor starts their work for the University. To determine if a worker is an employee or independent contractor, the Worker Classification Questionnaire will need to be completed by the department. If they are classified as an independent contractor, there are three other forms the contractor will need to provide in order to complete the vendor set-up process in IRIS. They are a Business Classification Form, W-9, and a Vendor Payment Selection form.
If no invoice is provided by the independent contractor, a Special Remittance Form (T-27) must be completed and submitted to FIO for processing along with the new vendor creation forms, Worker Classification Questionnaire, Business Classification, W-9, and Vendor Payment Selection form.
If request for payment from the independent contractor is by invoice, the same new vendor creation forms as listed above will need to be attached to the invoice before submission to FIO for processing.
If payment is made to a Non United States Citizen, in order to be compliant with the Federal Government, the following Payment to a Non United States Citizen form should be completed and sent to FIO for processing.
Please visit Fiscal Policy No: FIO540 - Independent Contractors for more information.
The university may provide a moving allowance for a newly hired faculty or staff member to move from their former residence to their new residence. To be eligible to receive a moving allowance and to comply with the current guidelines published by the Internal Revenue Service (IRS), the move of the residence must meet the minimum IRS distance test of 50 miles from the location of the former residence. For example, if the location of the former main workplace was 3 miles from the employee’s former home, the location of the employee’s new main workplace must be at least 53 miles from the employee’s former home.
In accordance with IRS regulations, the moving allowance will be reported as taxable income and included on the employee's W-2 statement at the end of the year. The IRS also requires applicable taxes to be withheld and reported. The employee may be able to recover the income tax withheld by filing the appropriate IRS forms with their tax return. This recovery is dependent on the IRS regulation in force at the time of the payment. The individual receiving the moving allowance will be responsible for documenting expenses on their federal tax return as required by IRS publication 521 - Moving Expenses. More information regarding this publication can be located at IRS.gov.
Prior to processing a moving allowance for a new employee, Form T-5 - Moving Expense Allowance Request Form must be completed and submitted to the Treasurer's Office. The form must be approved by a chancellor or vice president, or their designee. The form also will assist departments in calculating the net moving allowance that will be paid to the employee after applicable taxes are withheld.
A document indicating the amount of the allowance and acceptance by the employee must be attached to the T-5 and the allowance will not be processed more than 60 days prior to the employees start date. The moving allowance can’t exceed the amount in the document attached to the T-5.
Once the department processes a moving allowance for their new faculty or staff member, please forward a copy of the T-5 Moving Expense Allowance form to FIO for our records.
Please visit Fiscal Policy No: FIO 450 Moving Allowance for more information.
If you still need assistance or have questions, please contact Joy or Vickie.
Financial Information Office ~ 453 Haslam Business Building ~ Knoxville, TN ~ 37996 - 4140
Phone: (865) 974-1770 ~ Fax: (865) 974-3663 ~ (865) 974-4237
Knoxville, Tennessee 37996 | 865-974-1000
The flagship campus of the University of Tennessee System