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California State University, Long BeachCalifornia State University, Long Beach

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

  CSULB Employee Independent Contractor Pre-Approved Independent Contractor (e.g. Guest Lecturer/Musician/Model, Program/Article Evaluator/Reviewer/ Appraiser/Editor)
Office Contacts

Staff HR

Faculty Affairs

Staff HR
Faculty Affairs
Purchasing & Financial Svc

Accounts Payable

Staff HR
Faculty Affairs

Accounts Payable
Examples of Activities Performed
  • 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.
In rare cases, work must be performed by a non-employee.   Only to be determined after department discusses options with Staff HR or Faculty Affairs.
  • To be reviewed jointly by department and Staff HR or Faculty Affairs.
Departments must contact Staff HR or Faculty Affairs first before considering duties to be performed by non-employee.

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
Work must be academic related, paid to a person of “scholarly or professional standing.”
Determination Criteria
  • 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 $1,500 or less per engagement and $3,000 or less per AY
  • Must not be identified as a “High Hazard/High Risk Category (see Insurance Requirements below)
Payment
  • 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.
Insurance Requirements
  • None
  • Employee covered by Workers’ Compensation
  • Liability insurance must be provided by independent contractor (RM2012-01, EO 1041)
  • Waive Insurance
(Exceptions: 10 High Hazard/High Risk Categories (1) sports/physical contact, (2) special licensing, (3) specialized equipment, (4) financial advice/planning, (5)housing/ transportation component, (6) minors, (7) speakers with history of violence/protest, riot, (8) any class with more than 500 participants (total # of students x total days), (9) instruction with significant alteration of real or fixed property, (10) profits to campus entity exceeding $10,000.)
Required Documentation

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

Department Approving Authority Level 4 Level 3 Level 5