Budget, Payroll and Fiscal Analysis

A Service Contract Agreement (SCA) is a paper form that is used to process supplemental payments to an active employee. Supplemental payments are generally for one-time events/tasks and shouldn't be used to pay an employee on an on-going basis.

Do Not Use an SCA:

1. To compensate for an additional job.
2. To pay additional compensation for performing duties that are part of the employee’s regular job duties.
3. To process extra pay to an hourly paid employee (FT & PT). Due to time reporting and overtime considerations, this is not allowed.
4. To pay a terminated employee.
5. To pay for on-going services.

Helpful Hints:

1. Before services are performed: Prepare the SCA, have the employee sign it, and lastly route for approvals. This gives approving offices the opportunity to address any concerns beforehand.
2. The preparer should complete the bottom section of the SCA – Preparer name, extension, department and paying account. Incomplete SCAs will be returned to the preparer.
3. The approved SCA should be sent to the Office of Budget, Payroll & Fiscal Analysis at least 5 business days before services are started.
4. Only electronic or physical signatures will be accepted. SCAs containing invalid signatures will be returned to the preparer.
5. All SCA payments are processed through payroll and are subject to payroll taxes (including Social Security (6.2%), Medicare (1.45%), Supplemental Federal Withholding (22%) and retirement (if applicable).