Macalester Standard Engagement Contract and Payment Authorization

How to securely submit the Macalester Standard Engagement Contract (SEC) and Payment Authorization for Non-Employee Services

Please consider the LEAD Times to process the SEC and payment to vendor.   Ideally, SECs should be initiated as early as possible, there are many steps, and this review can be delayed by any one group.   Once the completed form AND the Vendor’s W-9 has been received by Accounts Payable, the payment will be processed per Accounts Payable’s payment schedule.  See How Soon will someone be paid if I submit the invoice today? for the payment schedule.

Macalester requires a Standard Engagement Contract (SEC) and Payment Authorization to be completed for Non-Employee Services with the College.    A Macalester Student SHOULD NOT be paid through the SEC.  Please review the steps below:

Step 1:  Is the SEC the appropriate form to complete?

Macalester is dedicated to adhering to Federal and State payment guidelines.  Payments to Workers and Contractors can vary.  To help determine which payment method to use, refer to:

• Payment to Workers/ Contractors Decision Guide
• Macalester Guidelines for Payments to Workers / Contractors Flowchart Diagram

Questions? Contact Alicia Walk, Payroll and Tax Manager, at [email protected]

Step 2:  If the Standard Engagement Agreement (SEC) is the correct method of payment,  gather:

• Name, email, address, and phone number of the Contractor / Non-Employee.
• FOAPAL(s) to pay for the service.  Approval for use of ALL FOAPALs must be obtained.  The FOAPAL is all numbers – see What is a FOAPAL?   for more information.
• Amount to be paid to the Contractor / Non-Employee including the Service Fee and the Reimbursable Expenses
• You will be asked to identify the Budget Approver.
  • If the total payment is within your AP Approval Limit, list yourself as the Budget Approver.
    • For example, a Department Coordinator with $500 Approval rights, can be the Initiator and Approver on a SEC that is less than $500.
  • If the total payment is greater than your AP Approval Limit, choose the Budget Approver who has approval rights for the FOAPAL.
    • Budget Approval levels and approvers can be found by looking up the Fund or Org in Finance Approval Look up Tool. 
• Description of the Services to be provided.
• Date and time of the Engagement.
• If the Contractor is International, check to see if their bank will accept a check from a bank in the United States.   If a check from a United States bank will not be accepted, please complete and include the Wire Transfer Request with the completed SEC.

Step 3:  Tax Considerations

Contractors / Non-Employees that are classified as Entertainers or Public Speakers, may be subject to taxes if:

• The Entertainer is paid $600 or more and resides outside of MN, MI and ND.
• The Public Speaker is paid $2,000 or more and resides outside of MN, MI and ND.

Macalester Initiators will select if the taxes will be paid by the same FOAPAL, or if the Contractor / Non-Employee will pay the tax, when completing the SEC.

Step 4:  Complete the electronic Standard Engagement Contract (SEC)

• Standard Engagement Contract (PDF)  (see How to open, fill and sign a PDF document)
• Ask the Vendor to Submit W-9 securely

Step 5:  Route and Submit the Standard Engagement Contract

• Once the SEC is completed by Macalester Contact, the Initiator should:
  • Send the SEC to the Vendor for review and signature
    • The Vendor will need to submit W-9 securely (domestic) or submit W8-BEN-E or W8-BEN (international) securely and then will be electronically submitted to Accounts Payable at Macalester.   Attaching Vendor’s  tax documents via email will not be accepted.
  • Send the completed SEC to the Budget Approver for approval (if the Initiator does not have high enough AP Approval Limit)
  • Email the signed and completed PDF to [email protected]

Step 6:  When to expect payment

Once the completed form AND the Vendor’s W-9 has been received by Accounts Payable, the payment will be processed per Accounts Payable’s payment schedule.  See How Soon will someone be paid if I submit the invoice today? for the payment schedule.

Step 7:  Post Service / Event follow up

Within 20 days of service, the Macalester Initiator of the SEC, should follow up with the Contractor to collect all Reimbursable Expense Receipts.   Next, the Macalester Initiator should submit a Check Request to reimburse the Contractor for their expenses.

Questions?

About contract language, please contact Director of Purchasing, Auxiliaries & Accounts Payable.

About determining if the payment should be made via the SEC or Payroll, please contact Alicia Walk, Payroll and Tax Manager

About payments, please contact Macalester Accounts Payable at [email protected]