The Continuing Education/Centers and Institutes Contract facilitates payment for teaching and non-teaching services that are short-term and provided by both IUP and non-IUP employees.
Obtaining the Form:
The contract is carbonless and produces four copies on papers of various colors. It can be purchased through Central Stores.
Criteria for Using the Contract:
The contract is used to pay for short-term services performed by IUP and non-IUP employees. Guidelines include:
- May hire without advertising or searching.
- IUP employees’ service must not conflict with primary responsibilities and duties.
- Service performed by IUP employees must be unrelated to the employee’s principle employment
- IUP faculty income during a calendar year may not exceed 120 percent of their annual salary.
- IUP employees must use annual/personal leave if service occurs during the employees’ normal working hours.
- Contract must be prepared and signed by the employee prior to service or work is started.
- Students cannot be paid through a contract.
Wages and Benefits:
The hourly rate varies, but cannot exceed the existing rate of pay for IUP employees. The rate is determined by the project budget and can be less than the usual IUP employment rate. Only “state paid” fringe benefits, including Social Security, retirement, worker’s compensation, and unemployment, are calculated against the hourly wage at 17.92 percent for an IUP employee or 8.63 percent for a non-IUP employee. For example, payment of $500 for services x 17.92 percent for benefits would equal a total charge of $589.60.
Completing the Form:
- At the top right, be sure to put the SAP cost center number that the expense is charged against.
- Complete Part A (Employee’s Name and Address; Maximum Hours allotted to the Project = total salary divided by hourly rate; rate per hour - total amount of salary only, excluding benefits; Contract Not to Exceed = salary plus benefits; Service Dates = when the employee’s work begins and ends on the project; Program Director’s Name and IUP Address)
- Complete Part B (Course title (if applicable); Location; Dates and times (very important).
Note: Total (hrs) in this section must agree with the maximum hrs listed in Part A – Compensation of Services
- Complete Part C (Describe what the employee is doing for this project).
- Part D: Authorized Individual is to sign off where indicated once service has been completed
- Complete Part E (Employee signs and dates (date must be prior to service dates). Program director provides the SAP # (if available). Employee must answer two questions related to pension plans — very important.)
- Complete Part F (Program director signs and dates; program director forwards to dean).
- Dean signs and forwards to assistant dean for Research.
- Assistant dean signs and sends back to program director.
- The contract has one original and four copies. The blue copy is kept by the program director for his/her files. The yellow copy is provided to the employee by the program director requesting the service. Remaining copies of contract must be submitted to Payroll Services for verification of the information requirements. Payroll services will then obtain the approval of the Accounting Department and then return the gold and pink copies to the program director. The gold and pink copies are signed by the program director and forwarded to Payroll Services after the service is complete to authorize payment.
