Independent Contractor Determination and Payment Procedures
Independent contractor payments may be processed for qualifying individuals providing services to the University. The responsibility for determining if the individual providing the service should be classified as an independent contractor or an employee rests with the department submitting the payment request. Clarification on independent contractor or employee status may be obtained from the Director of Human Resources.
It is critical that the University comply with State and Federal laws governing reportable/taxable income and the proper classification of employees and independent contractors. Misclassification of a worker as an independent contractor can result in serious financial penalties in a State or Federal audit. The hiring department will be financially responsible for any employment taxes, penalties and interest, should an independent contractor they hired be determined at a later date by any auditing authority to be more correctly classified as an employee.
Review of the limitations, determining factors, and instructions provided herein must be completed by the department PRIOR to hiring any individual as an independent contractor. Failure to do so could result in a request for payment to be denied should the individual hired not qualify as an independent contractor.
California State
University, San Bernardino | 5500
University Parkway, San Bernardino CA
92407-2318 | 909-537-5000