Employee vs. Independent Contractor Determination, Payment, Documentation and Authorization Matrix

Staff HR

Staff HR
Faculty Affairs
Purchasing & Financial Svc

Staff HR
Faculty Affairs

• Bargaining Unit Work
• Non Bargaining Unit Work (classifications: Special Consultant, Casual Worker)
• Departments must contact Staff HR or Faculty Affairs to determine if duties to be performed are bargaining unit work or not.  In most cases work will be BU work.

• To be reviewed jointly by department and Staff HR or Faculty Affairs.

Payment to an individual in recognition of special service.

• Guest Speaker/Lecturer (class/master class)
• Guest Artist/Musician
• Guest Model
• Article or program evaluator/reviewer/appraiser/ editor
• Technical/Class Demonstrator

• Employee must have legal right to work.
• If work is bargaining unit work, individual must be hired as employee.
• If work is not covered by a bargaining unit classification, individual may be hired as special consultant or casual worker.
• Work may be done by a current employee as additional duties but may not work more than 25% above full time employment.
• Employee must meet the requirements to perform the specialized work.
• Department must consult with Staff HR whenever deciding to hire.

• Individual must have legal right to work.
• Not current CSU employee or been employee for past two years (Exceptions apply, see HR2003-21)
• Is engaged in an independent trade, business or profession in which these same services are offered to the public.
• Services to be contracted cannot be performed by a CSU employee (Exceptions apply, see HR2003-21), or are of such a specialized or technical nature that the knowledge, experience, or ability is not available through the normal staffing process.
• University does not exercise control over details of the services to be performed (methods, hours worked).

• Individual must have a legal right to work.
• Not current CSU employee or been employee for past two years. (Exceptions apply, see HR2003-21)
• Not the instructor of record and speaks to a class because of his/her expertise
• Special, non-recurring activity for a limited time of less than 10 days per engagement per semester.
• Fee not legally or traditionally required
• Payment is $5,000 or less per engagement and $10,000 or less per AY
• Must not be identified as a “High Hazard/High Risk Category (see Insurance Requirements below)

• Payment may be monthly, daily or hourly depending upon appointment.
• Subject to regular tax withholdings
• W-2 report to IRS

• Signed Independent Contract Agreement
• Paid via invoice by Accounts Payable
• 1099 report to IRS if amount greater than $600 in one year.

• Pre-Approved IC Engagement Letter
• Pre-Approved IC Payment Request form
• Payment is $ 500 or less per engagement and $1,000 or less per AY
• 1099 report to IRS if amount greater than $600 in one year.

• None
• Employee covered by Workers’ Compensation

• Liability insurance must be provided by independent contractor (RM2012-01, EO 1041)

• Waive Insurance

Department to submit to Staff HR:

• Approved Hiring Exception
• PTF
• Position Description

Department to submit to Position Management (HRTSS):

• Position Action and Pool ID Request

New employee to complete:

• Check in as employee at Payroll Services and complete new hire paperwork
• If the employee is a Non Resident alien, the following form must be completed and submitted to the Tax Analyst:

*Foreign National Information Form

Department to submit to Payroll:

• Immediate/Special Pay Voucher if daily rate.
• Department enter time into Timekeeping system, if hourly.

Department submits to Staff HR or Faculty Affairs:

• Independent Contractor Pre-Hire Worksheet Authorization

Department submits to Purchasing & Financial Services:

• Approved Independent Contractor Pre-Hire Worksheet Authorization,
• Requisition in PeopleSoft with description of services, beginning and end dates, total amount to be paid and payment schedule,
• Scope of Work,
• Independent Contractor Agreement
• Proof of insurance (Department must purchase insurance, if necessary.)

Department submits to Accounts Payable:

• IC Invoice (approved for payment)
• Vendor Data 204 form
• If individual is a Non Resident Alien, the following forms must be completed and submitted to the Tax Analyst in AP:

*Foreign National Information Form
*CSULB Certification of Academic Activity*
*W-8BEN
*Passport Copy
*I-94

Department submits to Accounts Payable:

• Pre-Approved IC Engagement Letter
• Pre-Approved IC Payment Request Form
• Vendor Data 204 Form
• If individual is a Non Resident Alien, the following forms must be completed and submitted to the Tax Analyst in AP:

*Foreign National Information Form
*CSULB Certification of Academic Activity
*W-8BEN
*Passport Copy
*I-94