The Office of Research and Sponsored Programs partners with the Research Foundation of CUNY, as such, we utilize their electronic onboarding and training systems to efficiently introduce new employees.
If you plan to hire an employee using your awarded grant, there are several steps required before they can be placed on payroll; more information on payment guidelines can be found in the Payments To CUNY Employees Memorandum.
The New Hire Process
Personnel Vacancy Notice
If you are hiring a full-time employee – working more than 19 hours a week – you must complete a Personnel Vacancy Notice (through the RF website under “E-Services -> Personnel Vacancy Notice”) when announcing the appointment.
New Hire Package
Once you have determined a candidate for employment, the online new hire package must be fully completed and submitted (available on the Research Foundation website under "Electronic Tools -> RF Onboard."
No one should start work until this new hire package is complete and the employee has finished the I-9 and e-verification process. If problems arise, we at the ORSP can assist you.
E-Verification and I-9
The first step in hiring a new employee is the I-9/e-verification process - which must be completed on or before the employee's first day of work. This process ensures the employee is legally eligible to work. The ORSP will directly reach out to the employee to complete this process.
According to DHS/SSA requirements, most I-9 verifications must take place with in-person meetings - virtual I-9s are reserved for remote positions - meaning, all regular (in-person) and hybrid appointments must present their documentation in person.
To initiate the I-9, the following information is required:
Employees' full first and last names (as listed on their SSN card)
Employees' Email address
The last four digits of the employee's SSN
The appointment's official start date
The RF account number being used
The RF I9 E-Verify is an online system mandated and operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA), allowing employers to electronically verify the employment eligibility of new personnel. Once the I-9 is cleared, the second step is the onboarding application, completed electronically via the RF website under Electronic Tools and RF Onboard (accessible after you have received your RF username and created a password).
All employees must complete the I-9 before working and must complete E-Verification within three days of starting work. Any new hire package without E-Verification or submitted more than three days after the start date must be accompanied by a detailed letter from the PI (on department letterhead) that explains why the employee was not E-Verified on time, this letter must bear the PI’s signature.
The Office of Research & Sponsored Programs will E-Verify employees, please contact us at x2061 to make an appointment with our Grants Assistant.
Next Steps and More Hiring Information
E-PAFs
Upon completion, the new hire package is reviewed by the ORSP and is then sent to the Research Foundation for final processing - this step can take up to three weeks. The employee is then entered into the RF system.
After being entered into the RF system, the employee will receive an email from the RF with their employee ID number; and, the PI will receive 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.
Once the PI submits the E-PAF, the Client Services and the Grants Office must review and approve it - then, timesheets can be submitted.
Employee Payroll and PI Responsibility
PIs are ultimately responsible for monitoring and maintaining all of their employees’ time - including discussing annual and sick time with employees and ensuring that the employees’ time is utilized properly.
PIs also create the E-PAF (using the RF website) thusly, acknowledging this responsibility. Once the E-PAF is completed, the employee will be able to log on to the RF website with their employee ID and begin submitting timesheets (“E-Services -> Time and Leave”). Note: Employee timesheets must be approved by the PI before they can be processed.
Please Note - the ORSP does not issue paychecks, the RF does. Employees who contact our office regarding payroll will be redirected to speak to their respective PI (who should then contact the RF with any questions regarding paychecks).
Re-Hires
‘Rehire’ - defined as any Research Foundation employee who is reappointed after a break in service lasting 120 days or more.
In situations of a rehire, a Rehire Package is required. This package must be first completed and submitted to the ORSP and then sent to the RF.
Please make sure the paperwork is correctly completed before the employee commences their appointment period.
Once the rehire package is reviewed and sent to the RF, the PI can then create an E-PAF and submit it to the RF. Once the E-PAF is approved, the employee or PI will be able to submit timesheets.
More information on employee recruiting and re-hire can be found on the RF CUNY webpage for Recruiting and Rehiring Staff.
Student Stipends vs Employee Payroll
Note: Stipends and Payroll are two different forms of payment (According to the IRS)
Stipend - defined as a fixed sum of money paid periodically for services or to defray expenses
Wages are generally subject to employment taxes and should be reported on Form W-2, Wage and Tax Statement. Refer to the Employer's Tax Guide for rules on accountable and nonaccountable plans for employee business expenses.
The income from stipends is reportable; and, 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.
Generally: If an employee-employer relationship exists, it should be constituted as payroll.
The OMB Uniform Guidance
§200.430 Compensation – Personal Services - requires that funds paid to individuals for their services on federal programs be documented. This implies that payments to individuals not related to their services rendered should not be funded by research awards.
§200.466 Scholarships and Student Aid Costs - The costs of scholarships, fellowships, and other programs of student aid at IHEs are allowable only when the purpose of the Federal award is to provide training to selected participants, this is approved by the Federal awarding agency.
§200.75 Participant Support Costs - Participant support costs mean direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects.
Typically, if an individual is subject to the control or direction of another, as a result of the work accomplished and not as a result of the means and methods for accomplishing said results, they are defined as an independent contractor/consultant, rather than an employee.
However, if the individual has a Social Security number rather than a tax ID, they will then be considered an employee - this rule also applies if the person does not have a list of clients.
The IRS defines an independent contractor/consultant 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...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)...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 Independent Contractor Agreement (ICA) submitted for an Independent Contract is rejected by the RF, a new hire package must be completed instead.
For more information regarding hiring an independent contractor/consultant please contact the ORSP at x2061.
