Policies and Procedures
Contracts for Services Policy
Objective:
1. To allow the Grand Island Public Schools Foundation and all of its member Umbrella Organizations to enter into contracts for services that are deemed necessary to enhance the educational experience for GIPS students.
Policies and Procedures:
1. All persons or businesses offering services for which payment shall be made, will be required to complete a W-9 tax form prior to receiving payment.
2. In January of each year, Foundation Staff will send 1099 tax returns to all persons or businesses who have provided services according to criteria as defined by the IRS.
3. Contracts with GIPS Staff Members – From time to time, it may be necessary for the Foundation or its Umbrella Organizations to enter into an agreement with a GIPS Employee for a specific service based on the talents and abilities of that employee. Examples include: hiring employees to play instruments in a pit orchestra for the Fall Musical; hiring an employee to organize a tournament or event; hiring an employee to coach a camp, etc.
When the Foundation or Umbrella Organization hires a GIPS employee, the contract payment shall be executed through the GIPS payroll process. As such the following will occur:
a. Payment for the contract will be made to GIPS and the Payroll Department will be notified of the amount to attribute to the GIPS Employee’s next scheduled check.
b. Payroll taxes will be automatically withdrawn
c. The contracted payment will be subject to the Nebraska Public Employees Retirement System policies, procedures, and payments
d. The Foundation Office will NOT need a W-9 and will NOT issue a 1099
Exception – If the GIPS Employee owns, or holds an ownership stake in a business from which the services are being contracted, the payment for service shall be made to the business using the procedures outlined in 1 and 2 above. When this is the case, the business shall have a separate identification number from the GIPS Employee’s personal social security number and the service shall be an “arm’s length” transaction and therefore the GIPS Employee shall not have any part in authorizing the payment for the service.
4. The Foundation Board reserves the right to require any other documentation of services rendered that they deem necessary.
5. All transactions are subject to examination by internal and external auditors.
