Federal and state laws determine whether Puget Sound may pay individuals (including sole-proprietor businesses) for services through accounts payable using a contract or through payroll as an employee.
Listed below are general guidelines and determinations for payment of certain types of service arrangements with individuals.
- Current Puget Sound students are never independent contractors and should typically be paid through payroll for services they provide to the university.
- In a few instances, students are paid through accounts payable with a student leadership agreement. Use of student leadership agreements requires approval from Human Resources.
- Individuals who have worked, are working, or will work for the university in any capacity during the calendar year in question and were, are, or will be paid through payroll for that work, may never be independent contractors unless they have an unrelated external business with a business license.
Before any commitment is made for service arrangements with individuals (including sole-proprietor businesses), contact: