Hiring Personnel

Once the new hire package is completed and reviewed by ORSP, it is sent to the Research Foundation for final processing, which can take up to three weeks. Then the employee is entered into the RF system. The employee receives an email from the RF with his or her employee ID number. The PI receives a separate email stating that the package has been processed and directing the PI to create an Electronic Personnel Action Form (E-PAF) on the RF website. After the PI submits the E-PAF, and Client Services and the Grants Office reviews and approves it, timesheets can be submitted.

PIs are ultimately responsible for their employees. PIs are responsible for monitoring and maintaining all of their employees’ time. PIs must discuss annual and sick time with employees and ensure that employees’ time is being utilized properly. PIs create the E-PAF and by doing so, acknowledge this responsibility. Once the PI has created the E-PAF, the employee can log on to the RF website with his or her employee ID (www.rfcuny.org) and begin submitting timesheets through the “Time and Leave” screen under E-Services. Timesheets can be submitted as far back as four pay periods. Prior to that, any timesheets that need to be submitted must be done on paper. Employee timesheets must be approved by the PI before they can be processed.

PLEASE DO NOT SEND EMPLOYEES TO ORSP LOOKING FOR AND/OR INQUIRING ABOUT THEIR PAYCHECK. ORSP does not issue paychecks; the RF does. Any employee who contacts our office regarding payroll will be sent back to speak to his or her PI.

A ‘rehire’ is defined as any Research Foundation employee who is reappointed after a break in service lasting 120 days or more. In those situations, a rehire package is required. This package must be completed and submitted to ORSP and then sent to the RF. Please make sure to send the paperwork before the employee begins working. The employee may need to be E-Verified. The Rehire package can be downloaded from the RF website. Once the rehire package is reviewed and sent to the RF, the PI can create an E-PAF and submit it to the RF. Once the E-PAF is approved, the employee or PI can submit timesheets.

Student stipends and employee payroll are two very different terms. According to the IRS:

“A stipend is defined as a fixed sum of money paid periodically for services or to defray expenses. The fact that remuneration is termed a ‘fee’ or ‘stipend’ rather than salary or wages is immaterial. Wages are generally subject to employment taxes and should be reported on Form W-2, Wage and Tax Statement. Refer to Publication 15, Circular E, Employer’s Tax Guide, Section 5, Wages and Other Compensation, for rules on accountable and nonaccountable plans for employee business expenses. The income from stipends is reportable. Is the stipend or fee paid to an employee or an independent contractor reportable? The answer to this question determines the way that the stipend is reported. See also the section entitled Employee vs. Independent Contractor.”

A simpler definition: If an employee-employer relationship exists, it should be constituted as payroll. An employee is classified as anyone who will perform services for you, thereby giving you the right to control what will be done and how.

IRS guidelines are based on common-law rules, rather than statute, and are thus open to interpretation. The general rule is that if an individual is subject to the control or direction of another merely as to the result to be accomplished by the work and not as to the means and methods for accomplishing the results, s/he is an independent contractor, rather than an employee. However, if the individual has a Social Security number rather than a tax ID, he or she is generally considered an employee. Also, if the person does not have a list of clients, the individual is classified as an employee. The IRS defines independent contractor as follows:

“People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax. If you are an independent contractor, you are self-employed. To find out what your tax obligations are, visit the Self-Employed Tax Center.

You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.

If an employer-employee relationship exists (regardless of what the relationship is called), you are not an independent contractor and your earnings are generally not subject to Medicare and Social Security Taxes for Self-Employed.”

If the ICA submitted for an Independent Contract is rejected by the RF, a new hire package must be completed instead. For more information please contact ORSP.