How to Pay Consulting Fees

Payment of consulting Fees to an individual is considered taxable income.

When the University is issuing this type of payment, it is the responsibility of Financial Services to ensure that legislation set out by Revenue Canada is followed.

Note: If an individual receiving a consulting fee is also being reimbursed for travel expenses, please submit the travel expense on a separate travel claim. Further to the Broader Public Sector Expenses Directive, not all expenses incurred by consultants are eligible for reimbursement.  For further information, please refer to the Strategic Procurement Services website. 

If the payee is a non resident of Canada, the University is required to withhold 15 % tax. In this case, please indicate whether the mount noted on the requisition under "amount of cheque" is "GROSS' or "NET" of tax.

To initiate payment, use a SALARY REQUISITION in all cases except the following:

• where payee is non resident or
• where payee has an official "tax ruling from Revenue Canada stating he/she is tax exempt (in which case a copy of the ruling must accompany request for payment)

In the above noted cases use CHEQUE REQUISITION and provide the following information

• indicate residency status (i.e. resident (Canadian/landed Immigrant) or non resident (outside Canada)
• employee number of payee (if he/she has one)
• complete name of the payee (initials are not acceptable)
• complete permanent home address of the payee
• complete all other areas of the requisition including:
• account to be charged (Queen's 8 or 10 digit account number)
• authorized signature (person authorized to sign on account) note: payment to an individual cannot be authorized solely by that individual, but must be countersigned by a person at a higher level in the organization than the person being paid; Financial services will accept the signature of the department's administrative assistant on the accounts for which he/she has been delegated signing authority except where the payment is to the administrative assistant (or people) to whom he/she reports (in m ost cases, a researcher or department head)
• direct deposit service is only available for individuals that are paid on monthly payroll.

If you have questions regarding a specific consulting fee payment, please contact the Financial Services Support Centre.