Prior to the performance of any consulting or personal services work, the Office of Financial Affairs must determine the status of the individual to be paid as "employee" or "independent contractor". Individuals determined to be "employees" for a given service will be paid through Payroll Services, subject to proper tax withholdings. Individuals determined to be "independent contractors" for a given service will be paid through Accounts Payable, not subject to tax withholdings.

Current UAB employees, regardless of UAB assignment category, must be paid through the UAB payroll system for all services, except those services specifically entitled to independent contractor treatment If payment for an independent contractor service rendered by someone who is otherwise a UAB employee is to be made from a grant or contract, the Office of the Vice President for Research must approve the request prior to its being reviewed by the Office of Financial Affairs.

Consulting pay to an "employee" may be processed via Special Payments - HR Policy 130. Active UAB employees should refer to Internal Consulting by UAB Employees - HR Policy 129.