Heather -

You should also review the tax laws regarding that an individual cannot be an employee and and independent contractor to the same entity.
Lori

Lori B. Hulak, BA, CRA
Specialist, Grant Writer
Jefferson College of Health Sciences
920 S. Jefferson Street
Roanoke, VA 24031-3186
Phone (540) 985-8206
xxxxxx@jchs.edu

>>> "Kraus,Heather L" <xxxxxx@UAKRON.EDU> 7/7/2009 10:11:14 AM >>>
Good morning. Wondering if any one can provide me with some additional information.  We currently have a part time employee who owns his own consulting company and wants to give his company a consulting agreement for a new award from NIST.  Since he is a part time employee he can not be the PI on this project. There will be another employee assuming the PI role for this project.

 We have told him that he can not have his company provide these services because it goes against A-21 section J-37 (professional service costs).  They are suggesting that he will resign as an employee so that he can abide by the guidelines and take on the consulting role.  We do not think this is a good idea, does anyone permit this?  And if so is there a federal regulation that you are following?  Any information would be helpful.  Thanks!!!

Heather L. Kraus
Associate Controller
Controller's Office
The University of Akron
Phone - (330) 972-6563
Fax - (330) 972-5702
xxxxxx@uakron.edu<mailto:xxxxxx@uakron.edu>

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