Provision Of Service Contract

What is a Provision of Service Contract?

A Provision of Service Contract is an agreement by which a Contractor undertakes to carry out physical or intellectual work or provide a service to the University for a stipulated fee. The Contractor is free to choose the means of performing the work and no relationship of subordination exists between the Contractor and the University in respect of such performance.

Employee or Independent Contractor?

Faculty/Staff overseeing the service contract are responsible for determining if a Provision of Service contract is necessary or if the services will be paid to the service provider as an employee. Determining the status is complex and is guided by Canada Revenue Agency* guidelines.

1

Determining the Status

Before the work begins, Faculty/Staff should complete an Employee/Independent Contractor Checklist.

Once complete, review the information on Page 2 to determine the status. The completed checklist will be submitted with the contract for both employees and independent contractors.

2

Classification

After you have determined how the contract will be paid follow the steps under the appropriate classification:

  • Employee
    Complete a Request for Contract Form, attach the signed checklist and send to Human Resources.

  • Independent Contractor
    Complete a Provision of Services contract, either Incorporated‌ or Unincorporated‌.

    When you have received your initial invoice submit the following to Accounts Payable (A291):
    • Completed Provision of Service Contract
    • Initial Invoice
    • Completed Employee/Independent Contractor Checklist

For assistance, please contact your Financial Analyst & Liaison.
*This is a guide only; CRA is ultimately the deciding authority in all situations.

 

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