Pay an Independent Contractor


An Independent Contractor is an individual who has entered into a contractual agreement to provide goods or services to the University and meets all of the following criteria:

  • Is not currently an employee of the University;
  • Has no expectation of becoming an employee at the end of the contractual service;
  • Relied or will rely upon own expertise rather than following specific instructions from the department regarding performance of the required work;
  • Performed the work to the specifications of, but not under the direction of, a University employee or student;
  • Did not have the required number of work hours and/or days of the week set by the University.

Step by Step

  1. Qualify your Recipient

    Ensure that the recipients meet the above criteria. Further information is provided Compensation (Pay) | Human Resources | Virginia Commonwealth University. Current VCU students may be paid as an Independent Contractor as long as they meet all criteria.

    If an individual is a non-resident alien, see the Global Education Office website for detailed instructions and required forms prior to entering into an Independent Contractor agreement with the individual.

  2. Determine if the Independent Contractor is Set Up in RealSource

  3. Complete Independent Contractor Agreement (ICA) Form Prior to Service

    The ICA form must be completed by the department requesting services in advance of the commencement of services. This form must be executed by both the department and the vendor.  The ICA form can be located in Related Documents (top right of this webpage). Ensure the following information is entered onto the ICA form:

    • Name - Insert full, legal name as it is listed in the Banner Financial System. Do not use abbreviations or nicknames.
    • Banner ID (V#)
    • Address - Insert home address as listed in Banner.
  4. Create a Purchase Order in RealSource using the Non-Catalog Item Requisition Form (Near the top of Quick Links)

    Create a purchase order in RealSource using the non-catalog-item near the top of Quick Links. When processing the non-catalog requisition...

    1. select Independent Contractor as the Requisition Type
    2. attach a PDF copy of the fully-executed ICA as an Internal Attachment to the requisition (this is the form executed by the dept/vendor)
    3. when asked if you attached the ICA form, select Yes. Note, attaching the ICA to the requisition is required for all requisitions regardless of dollar amount.

    The dollar amount of the PO must reflect the total-amount for all services to be provided by the Independent Contractor. For example, if the individual will be paid $2,500 per quarter for 4 quarters, the PO should be processed for $10,000.

  5. Receive in RealSource

    Upon completion of services, receive in RealSource. 
  6. Submit the Request for Payment

    Upon completion of services, submit a ICA Payment Request form from the RealSource Accounts Payable showcase.

For More Information

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For help, please submit a Cherwell service ticket
Look Under School/Unit IT Support
Under Procurement Services, select Accounts Payable

Edit | Last updated: 03/17/2023