Paying for Services

General Information

When you pay somebody for their work (such as serving as a DJ or performing for an event, designing a poster or web page, delivering a lecture, teaching a class, etc.), the money this person receives is considered taxable income by the Federal government.

You cannot be reimbursed for this type of payment because of federal tax law.

Services 1: Current Dartmouth Student

Dartmouth students must always be paid through Payroll.

Make sure the student being paid has submitted required payroll paperwork to Payroll (I-9 form, W-9 tax withholding form, and direct deposit information if applicable). Information for student employees can be found in Student Employment.

There are two different procedures for paying Dartmouth students, depending on the type of work performed.

Situation A: Lump Sum Payment

If the work performed meets the following criteria, a Payroll "lump sum" payment can be arranged, and a student payroll timesheet is not needed:

The position is a creative endeavor or artistic in purpose (e.g., DJ, performer/entertainer, writer, graphic artist)
The position's primary duties are considered "on-call", unpredictable, or ad-hoc (e.g. Undergraduate Advisor, Camp Counselor, DOSC, Peer Advisor, Dartmouth EMS, Campus-Events Listserv Manager.

If the payment meets these criteria, complete the Current Dartmouth Student, Lump Sum Payment form. If you are not sure if the payment is eligible for the lump sum payment, ask us!

Situation B: Hourly Payment, Student Payroll Timesheet

If the work performed meets the following criteria, a Student Payroll Timesheet is required:

The amount of time working can be tracked in hours and minutes
The amount of time working can be verified

For the hourly payment, see the Current Dartmouth Student, Hourly Payment form.

If you are not sure if you are required to use the payroll timesheet for the payment you want to make, ask us!

Services 2: Current Dartmouth Employee

Payment to a Dartmouth employee for a performance or any other service must be processed through Payroll. Use the Current Dartmouth Employee, Payment form. This form provides all the information needed for us to start the process.

Services 3: Unaffiliated Performer

To pay an unaffiliated performer (someone not affiliated with Dartmouth), we require:

A Performance Agreement - Contract Request Information form to be submitted in Dartmouth Groups using the Unaffiliated Performer form.

Services 4: Unaffiliated Contracted Service (Not A Performer)

To pay an independent contractor (an individual not affiliated with Dartmouth), we require:

A Limited Engagement Agreement when paying for a professional service (speaker, web design, other misc. service) of $5,000 or less annually; or
A Limited "Work Made for Hire" Agreement when paying for a professional service involving the creation of copyrighted work (such as freelance artists, photographers, videographers, illustrators, and writers) of $5,000 or less annually; or
An Independent Contractor - Contract Request Information form if the amount is more than $5,000 annually.

AND

An invoice... clearly identifying: the Business Name or D.B.A remittance, which must match the registered name within PaymentWorks; Bill To: Dartmouth College (or Trustees of Dartmouth College); Invoice Number (each invoice should have a unique invoice number); Invoice Date; Contract Number (if available); PO Number (if available); Date or dates of when the goods and/or services were provided; Description of goods and/or services provided; and Invoice Amount Due.

The invoice, along with the agreement or contract request form, must be submitted in Dartmouth Groups using the Unaffiliated Contracted Service form.

Services 5: Unaffiliated Honorarium

To pay a person not affiliated with Dartmouth for something that is not a performance or a contracted service, we require:

An Honorarium Acceptance form to be submitted in Dartmouth Groups using the Unaffiliated Honorarium form.

Important: An honorarium is an ex gratia payment (i.e., a payment made without the giver recognizing himself as having any liability or legal obligation) made to a person for his or her services in a volunteer capacity, or for services for which fees are not traditionally required. This is generally used by groups to pay guest speakers at a conference to cover their travel, accommodation, or preparation time.