Paying Individuals

Payments to individuals may be made for a number of reasons, but it is important to determine the nature of the payment in each situation to ensure a proper method of processing and appropriate tax treatment. 

Personal Service Agreement (PSA) must be issued prior to any commitment made for providing of services, and is presented to the service provider at the time the contract is arranged.

Buyway system is used to submit requisitions, issue POs, process invoices, and other payments to individuals. It consists of various tools to facilitate these processes including adding attachments, comments, etc.

Payment to an individual may be requested for the following:

  • Providing a service as a vendor.
  • Reimbursement of a purchase.
  • Refund of a payment received by the university (this excludes tuition-related payments).
  • Payments to participants.

You pay individuals who provide one-time, specific services to Miami through Buyway. Examples include: speakers, consultants, disc jockeys, etc. These services differ from ongoing work (which is covered under Human Resources's hiring process.

When paying a single person as a service provider, that individual is acting as an independent contractor for the University. Accordingly, you must follow all listed steps for hiring and paying that individual. We cannot process payments without completion of these steps. We suggest that you allow plenty of time for this process when planning services. You must submit these forms for each occurrence unless all dates are listed on the agreement.

Process for Paying Independent Contractors      Independent Contractors FAQ

Reimbursement can be requested via Buyway to pay back individuals for personal payments made for University-approved purchases. As stated in the Purchasing Handbook, reimbursements are specifically discouraged unless under the most extreme circumstances (see Purchasing Handbook 1.02).

Please note: Reimbursements to Staff, Faculty, and Graduate Assistants/Students for travel or hosting-related expenses should be submitted in Chrome River with proper documentation.

Reimbursements must be submitted within 60 days from the date of the expense or they can be considered a taxable benefit.

Also, no purchase from Amazon.com can be reimbursed without prior approval by the Office of Strategic Procurement.

In certain cases, you may submit a request for a refund of payment through Buyway. Refunds return a portion of a payment to the individual. An example is refunding a study abroad trip fee to a student who has paid the fee, but cannot attend the trip.

Please note: You will need to provide an explanation for the refund in Buyway.

Providing a Service

You pay individuals who provide one-time, specific services to Miami through Buyway. Examples include: speakers, consultants, disc jockeys, etc. These services differ from ongoing work (which is covered under Human Resources's hiring process.

When paying a single person as a service provider, that individual is acting as an independent contractor for the University. Accordingly, you must follow all listed steps for hiring and paying that individual. We cannot process payments without completion of these steps. We suggest that you allow plenty of time for this process when planning services. You must submit these forms for each occurrence unless all dates are listed on the agreement.

Process for Paying Independent Contractors      Independent Contractors FAQ

Reimbursements

Reimbursement can be requested via Buyway to pay back individuals for personal payments made for University-approved purchases. As stated in the Purchasing Handbook, reimbursements are specifically discouraged unless under the most extreme circumstances (see Purchasing Handbook 1.02).

Please note: Reimbursements to Staff, Faculty, and Graduate Assistants/Students for travel or hosting-related expenses should be submitted in Chrome River with proper documentation.

Reimbursements must be submitted within 60 days from the date of the expense or they can be considered a taxable benefit.

Also, no purchase from Amazon.com can be reimbursed without prior approval by the Office of Strategic Procurement.

Refunds

In certain cases, you may submit a request for a refund of payment through Buyway. Refunds return a portion of a payment to the individual. An example is refunding a study abroad trip fee to a student who has paid the fee, but cannot attend the trip.

Please note: You will need to provide an explanation for the refund in Buyway.

Payments to Participants

Required Documentation Guide

The table below provides a quick guide to the documentation you will need to pay for common services that individuals provide.

Documentation Required Based on Payment Type
Payment Type Documentation (Required) Documentation (Optional)
Honorarium Professional Services Agreement, OPERS Pamphlet from event
Other Services Professional Services Agreement, OPERS None
Stipend Professional Services Agreement, OPERS None
Prize/Award Notice of award None
Research Subject Participation Human Research Subject Payment form None
Reimbursement Reimbursement Certification and Approval Form, Itemized receipt. Hosting Form (if applicable), copy of bank statement.