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To: MOU Financial Leads
Finance Council
University Business Managers
School/Division HR Officers and Secondary Contacts

From: Martha Pendergrass, Director, Procurement Services

Re: Policy update regarding Independent Contractors
The following finance policy, procedure and documentation have been updated or created to provide clarification. Please share with staff in your school/department as appropriate.

  • Policy 708, Independent Contractor, updates include:
    • definition of a single member LLC
    • addition of Related Data Item 708.1.1rd – Domestic Vendor Independent Contractor Workflow Process and Related Data Item 708.1.2rd – Foreign Vendor Independent Contractor Workflow Process
    • removed 20 questions from the policy into a link for a more streamlined presentation of information.
  • Procedure 708.1, Independent Contractor Predetermination, updates include:
    • update background check process
    • addition of Related Data Item 708.1.1rd – Domestic Vendor Independent Contractor Workflow Process and Related Data Item 708.1.2rd – Foreign Vendor Independent Contractor Workflow Process

The Finance Council  Communications, Policy and Strategy Subcommittee working group created workflow processes for both domestic and foreign vendor independent contractors — 708.1.1rd Domestic Vendor Independent Contractors (IC) and 708.1.2rd Foreign Vendor Independent Contractors. The flowchart helps clarify the process for hiring both types of contractors and helps distinguish between hiring this type of worker versus a temporary employee or direct hire temporary. The flowchart highlights the forms and procedures necessary, including the new CastleBranch background check and when to apply for this procedure when hiring a potential contractor.

Many thanks to the Finance Council Communications, Policy and Strategy Subcommittee for their time, suggestions and work in crafting these changes.  This was truly a group effort that involved subcommittee working group members, Finance business owners and OHR.

If you have questions, please contact Martha Pendergrass (mjpender@email.unc.edu).

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