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Loyola University Chicago

Office of Research Services

Paying Individuals from Externally Funded Projects

There are four categories of individuals eligible for payments from externally funded projects: Loyola faculty, Loyola staff, independent contractors, and human subjects.  Please click on one of the following subheads for additional details:

Faculty employing staff members who will be paid on a grant/contract, whether part-time or full-time, must follow the policies and procedures of Human Resources. Hiring for a new position, replacement position, or changing FTE on any position (grant or non-grant funded), requires putting the position through the applicant tracking system (accessible only by the hiring administrator; workflow includes approval of the department head/chair, VP/Dean, Provost and President, including Compensation and SPA/Budgeting Offices).  For those units reporting to the Provost, prior approval of any new or change in FTE should be pre-approved. Forms can be found here.

Procedures for merit awards for graduate students are found here.

Faculty are responsible for initiating the process to charge staff to grants and contracts, and for inactivating their appointment at the end of a project (or earlier, if their employment is ending). Vacation earned/accrued by full-time or part-time staff who are supported by grants should be encouraged by Principal Investigators to take time off before funds are depleted or the grant expires. Otherwise, earned vacation time becomes a liability for the department.

Information on faculty salary charges on externally funded projects is available here.

According to IRS rules, payments can either be made to employees, independent contractors (IC) or human subjects. There is no other type of individual that can be paid. Thus, invited speakers, outside consultants of any type, outside advisors, outside paid reviewers, etc., must be paid as an IC.

If the Principal Investigator (PI) is buying a one-time service, then the IC will perform the service and submit an invoice. A consulting agreement is typically not required in such circumstances. If the service is recurring, then a consulting agreement should be in place to protect both parties in case something doesn't go according to plan.


A model consulting agreement that can be adapted for a given situation can be found here. (Instructions and ancillary forms, if needed, can be found here.) In addition to a consulting agreement, at least two forms are generally needed before payments can be made to a consultant under a grant: the Worker's Classification Form (Microsoft Word or Formatta), and a W-9 form to be filled out by the person/organization receiving the payment. For additional information on these and other forms that may be needed, click here. The following steps should be followed:

  • Prior to making arrangements with a potential IC, contact Research Services to initiate preparation of the consulting agreement (if needed) and to make sure the payment is allowable under the terms and conditions of the grant, especially on federal and federal flow through awards. Once the consulting agreement is fully executed, Research Services will upload a copy to the PTAP and notify Sponsored Program Accounting (SPA) that a new consulting agreement for that grant has been executed.
  • Upon making arrangements with the IC, immediately obtain a W-9 form and provide it to the contractor requesting that the IC sign and return the W-9 form as soon as possible to assist in the speed of processing payments. NOTE: A new W-9 form is not required if Accounts Payable already has assigned a vendor number to the IC: contact the Accounts Payable Department (312-915-8760 or e-mail at ACCOUNTS-PAYABLES@luc.edu) in order to ascertain if the individual has an existing form on file.
  • Prepare a Worker's Classification Form (Microsoft Word or Formatta). Be sure to check “yes” in item 12. For additional information, see http://www.luc.edu/finance/workersclassificationprocedure/.
  • Upon receipt of a request for payment from the IC, submit a payment requisition, signed W-9 form, consulting agreement, Worker's Classification Form, and supporting documentation (original invoice, flyer or brochure with speaker's name, etc.) to Accounts Payable at ACCOUNTS-PAYABLES@luc.edu for processing. Accounts Payable will import the request into the necessary systems and route the request to Sponsored Program Accounting for approval.


For consulting agreements expected to cost $5,000 or more, there is one additional step that must be taken, in addition to those listed above:

Purchasing Checklist and Bid Summary Form - A Purchasing Checklist and Bid Summary Form must be completed by the PI or his/her designee (e.g., the departmental business manager) and submitted to Purchasing at purchlsc@luc.edu. Normally, hiring of ICs where the cost will be $5,000 or greater requires a competitive bidding process; however, the Checklist has provisions for documenting that the IC is eligible for selection without competitive bidding (e.g., named in the grant award).  Typically the Purchasing Checklist and Bid Summary Form would be submitted at the same time as the other documents described above in the last bullet item.  For convenience, you may send all documents to Purchasing (purchlsc@luc.edu): the Purchasing Checklist and Bid Summary Form, payment requisition, W-9 form, consulting agreement, Worker's Classification Form, and any supporting documentation.

For policy and procedure guidance on payments to research subjects, click here.

Procedures for stipend payments to graduate students are not included here. Stipend payments are arranged through the Graduate Program Directors (GPDs) using the Merit Award Form. For additional information please contact the Graduate School at 773-508-3396.


Office of Research Services
6439 N. Sheridan Road, Suite 400 · Chicago, IL 60626-5309
Phone: 773.508.2471 · Fax: 773.508.8942 · E-mail:ors@luc.edu

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