Iowa State University

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State Agency Consulting Services - These are professional services rendered by a State of Iowa employee for a State of Iowa agency other than his/her primary employer. State of Iowa agencies include branch agencies such as the Iowa Department of Human Services or the Iowa Department of Transportation. State regulations require payment for state agency consulting services to be made by the employee's primary employer. NOTE: The Board of Regents determined this no longer applies to regents institutions. If services are performed for another regents institution, payment may be made directly to the employee instead of the employee's primary employer. When applicable, please create a disbursement voucher.

When an ISU employee is hired by another state agency to perform professional services, the state agency should not pay the ISU employee directly for those services. Instead the agency should send the check, payable to Iowa State University, to the following address:

ISU Controller's Department
Attn: Katie Wiegand
3607 ASB
Ames, IA 50011-3607

The Controller's Department will deposit the state agency payment into a clearing account and then issue a disbursement voucher to the employee in payment of those professional services. By using this process, the necessary information is captured in the ISU payroll records. There are no federal or state taxes withheld on these payments. After the end of the calendar year, an IRS Form 1099 will be issued to any employees whose annual payments exceed $600. This information is also reported to the IRS, so employees need to report the income on their individual tax returns.

If your department hires an employee of another State of Iowa agency, you should not pay them directly. You need to create a disbursement voucher payable to the employee's primary employer. Please note that if the vendor does not exist, you will need to create it before the disbursement voucher can be routed. (Click here for instructions on creating and editing a vendor.) In the Explanation section of the disbursement voucher, indicate the employee's full name, social security number, and description and date(s) of the services provided. This information should help to expedite the payment through the agency's accounting system. The other state agency will in turn issue a check to the employee and record the payment in their payroll records.

If you have questions regarding state agency consulting services, please contact Katie Wiegand in the Controller's Department.