Contracting Services of Others

To ensure we are compliant with the Fair Labor Standards Act and several University policies, we follow the PeoplePay Decision Tool to determine the method of payment. 

The PeoplePay process is a way to pay individuals for services (e.g.,  receiving an honorarium, speaking in a class, editing marketing materials, one-time work on a project, etc.)

If you are contracting a person for regular work (not a one-time payment), we may need to employ them or create a personal services contract (PSC) for them. In most cases, we will need to hire them as an employee of the University. UMSI Finance will work with UMSI HR to determine if this is the case. If the person is an independent contractor, meaning U-M cannot dictate their work, or if there is a conflict of commitment/interest that prohibits them from being employed with the University, then UMSI Finance will work with U-M Procurement to create a PSC for them. 

To request payment for services, please provide the following information to umsi.finance@umich.edu:

• Name of the individual being paid

• Email address

• Amount to be paid

• Do you want this payment to be grossed up?

  • If the services were performed while the person was physically located in the United States, they will be subject to taxes. The person receiving payment will receive a 1099 form from U-M for them to enter this as income in their taxes. 

• What they are being paid for (i.e. services they have performed, award, etc.)

• Shortcode for funding

• Dates of services

• Where was the individual physically located when services were performed? (i.e. Michigan, California, Germany, Canada)

• Citizen status (US citizen, Permanent resident, or Resident alien, Non-resident alien, Unsure)

• Other relevant information (i.e. you approve payment before services are completed, you have approved them being paid through a business rather than as an individual)

• An invoice is needed for payments to a business. NOTE: Businesses are not paid through PeoplePay

Please let the person receiving payment know that U-M's Shared Services Center will be reaching out to them to process payment. They will need to obtain personal information (address, birthdate, social security number, account number for direct deposit, etc) to submit the payment. They have to create a supplier record in the system to initiate payment.