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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

Dec. 7, 2010
June 22, 2011
Contractor Services


Part 12. Independent Contractors - Table of Contents


A. Services Performed Inside the U.S. by Independent Contractors or Performers

For services performed inside the U.S., all relevant documents on the B Visitor checklist or J Visitor checklist must be attached to the payment voucher when it is sent to the Office of Accounting for final review and approval.

During the VP2 voucher approval process, the document creator will encounter a pop-up error message indicating the need to contact This error occurs because the department must confirm that all necessary documentation has been collected. To correct this error, please take the following steps:

  1. To confirm the legality of the payment for services performed by a nonresident inside the U.S., the department must collect all the necessary documentation required by the B or J visitor checklist.
  2. The VP2 document creator must add document NOTes listing all the documents collected.
  3. E-mail to request an update to the vendor record of the payee to allow approval of the VP2. Include the VP2 document ID number in the e-mail.
  4. The department will be notified when the vendor record is updated and the VP2 is ready for approval, or someone from the Office of Accounting will contact the department to discuss how to resolve any issues that will prevent payment.
  5. The VP2 voucher and all supporting documentation must be submitted to the Office of Accounting before the VP2 document can be approved, and it must include the following documentation:
    • VP2 cover sheet
    • Copies of all B or J visitors checklist items collected from the nonresident
    • Authorization document (contract, APS, or PBS/AIS)
    • Employee/Independent Contractor Classification Checklist (EICCC)
  6. Send the VP2 voucher package to: Office of Accounting, Travel Section, Mail Code K5300.

B. Services Performed Outside the U.S. by Independent Contractors or Performers

If a department engages a nonresident to perform work exclusively outside the U.S., and the nonresident does not come to the U.S. to visit The University of Texas at Austin, these services are not subject to U.S. immigration or tax laws. These payments are not subject to U.S. tax withholding or reporting.

The voucher NOTes in *DEFINE must include both the name of the country where services were performed and the payee’s country of residence. When processing a VP2 payment document, use object code 1326 exclusively for services performed outside of the U.S. by a nonresident.



Part 12. Independent Contractors - Table of Contents