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I work for a non profit company and I need help with different requests that I receive from IC's.

the organization is in Iowa and some IC's are working in California, I am continuously receiving emails from them asking for the Gas reimbursement and car milage and other expenses. I want to know if a non profit organization should provide these to an Independent Contractor. Thanks

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Anon
You should look at your contracts with these independent contractors. Unless your contracts (or PO/statements of work) require you to reimburse for travel, then you likely don't owe anything. That is what it means to be independent.
It depends on the way you negotiate the contracts.

Finance IRT
Title: Director of Operations and Finance
Company: IRT
(Director of Operations and Finance, IRT) |

Thank you Len

Kristen Bogenrief
Title: CFO
Company: Personal Care Products Council
(CFO, Personal Care Products Council) |

We usually only reimburse for significant expenses if, as noted above, it is agreed to in the contract. For example, when an independent contractor is required to travel to another city either by car or by commerical carriers to provide services under the contract. When this is required, we also stipulate in the contract that the travel needs to be approved in writing by the person managing the contract.
If other expenses need to be reimburse due to the nature of the services to be provided, we set a not to exceed limit on theses expenses. Hope this helps.

Robert Honeyman
Title: CFO
Company: Advanced Predictive Analytics
(CFO, Advanced Predictive Analytics) |

If the Contractor Agreement does not address the issue, consider amending all existing agreements to specifically lay out your organization's intent. The agreements I use all state that only budgeted expenses with written pre-approval will be reimbursed.

Ken Mason
Title: Controller
Company: Pascua Yaqui Tribe
LinkedIn Profile
(Controller, Pascua Yaqui Tribe) |

If the contracts are mute with respect to expense reimbursement, you do not owe it. However, it is best to take Robert's advice and explicitly state that expenses will not be reimbursed. Then there is no ambiguity or hassle.

Vik Agrawal
Title: President & Co-Founder
Company: ExpensePath, Inc.
(President & Co-Founder, ExpensePath, Inc.) |

Sounds like you need to:
1) Set policy. Like what are the rules, what will you reimburse, under what circumstance, and how much
2) Set process. IC submits their request with necessary backup, get approval from the right people, and then it comes to you for final approval and payment.
3) Communicate/get everyone following the process.
We see this situation all the time because we automate this process for small companies within an hour with an immediate ROI. Feel free to contact me if you have questions or want to know the range of how other companies handle this.

Vik

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