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INDEPENDENT-CONTRACTOR-AGREEMENT---bcoebuttek12caus

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					REPORTING REQUIREMENTS
The Independent Contractor Registry was implemented per SB 542, Chapter 480 of the Statutes of 1999 added Section 1088.8 to the California Unemployment Insurance Code (UIC). Pursuant to UIC Section 1088.8, anyone filing Federal 1099-MISC forms for services performed by independent contractors must also notify the Employment Development Department (EDD) of prescribed information effective January 1, 2001. Information obtained from the Independent Contractor Registry will be used for purposes of establishing, modifying, or enforcing child support obligations. Reporting Requirements Any business or government entity required to file Federal 1099-MISC forms for services performed by an independent contractor must report. EDD Form DE-542, “Report of Independent Contractor(s),” is used to report independent contractors providing services. The report must be submitted annually within 20 days of either making payments totaling $600 or more or entering into a contract for $600 or more with an independent contractor in any calendar year, whichever occurs first. The following information about the independent contractor must be submitted to the EDD:  First name, middle initial, last name  Social security number  Address  Start date of contract  Amount of contract  Contract expiration date (if applicable)  Ongoing contract (if applicable) Link to DE 542 Form We are reporting this information to the EDD through magnetic media. In order to fulfill our reporting responsibilities, we have established the following Independent Contractor Procedures/Guidelines. It is the responsibility of departments to obtain the necessary information when they enter into a contract with an independent contractor. Departments are now required to obtain and submit FORM DE-542 with the Certification form. Also, checks will not be issued until information is submitted to Accounts Payable. These changes are necessary due to the twenty (20) day time constraint mandated by EDD. Other changes to Form BF-01 include:    If a business is a corporation or partnership, Form BF-01 is not required. If a business is a sole-proprietorship, Form BF-01and the DE-542 are required. Services are defined as and are not limited to attorney fees, accountant fees, speakers, presenters, and consultants.

THESE PROCEDURES BECAME EFFECTIVE JANUARY 1, 2001.
BF-01 (Rev. 7/08)

INDEPENDENT CONTRACTOR'S PROCEDURES/GUIDELINES
Definitions 1. Services are defined as and are not limited to attorney fees, accountant fees, speakers, presenters, and consultants; If a business has a federal taxpayer identification number and they are a corporation, non-profit or a partnership, they will NOT be expected to enter into the Independent Contractor process;

2.

Requirements 3. BEFORE any Independent Contractor Agreement (hereinafter referred to as “Agreement”) can be entered into, the Independent Contractor Certification (hereinafter referred to as “Certification”) must have been approved by the Program Manager, appropriate Assistant Superintendent and Financial Analyst of Administrative Services; Before any services are to be performed by the Contractor, both the original Certification and Agreement must be signed by all appropriate parties. The original Certification (with original signatures) and the original Agreement (if ongoing) will be held in Accounts Payable for the duration of the fiscal year; If the business or individual is a sole-proprietorship, departments are REQUIRED to get owner’s name, address, social security number (whether or not they file under a federal tax identification number), date of contract, amount of contract, and contract expiration date for Form DE-542 reporting purposes. Since departments make the first contact with the vendor, they will be responsible for getting the information required for Form DE-542; A link to the Form DE-542 is accessible in the Requirements section of BF-01 or on the Administrative Services Index of Forms on the internet; Form DE-542 will be required to be sent with the Certification and Agreement. The Social Security number is a requirement on the DE-542, Certification, and Agreement, and checks will not be issued by Accounts Payable if this information is missing; 6. 7. Special Consideration : Earnings paid to a Retired CalSTRS member as an independent contractor need to be reported. Please indicate if the proposed Independent Contractor is a member of this program; Special Consideration : If the proposed Contractor is not a resident of California and will be performing services within the State of California over the amount of $1500.00 during a calendar year, the Department must have the Contractor fill out a California Form 587 for Tax Withholding Allocation of 7% of their earnings or a California Form 590 to prove they are exempt from California tax. Please contact Accounts Payable for more information if the proposed Contractor is an out-of-state vendor for more assistance; Form 587: Form 590: 8. http://www.ftb.ca.gov/forms/misc/587.pdf http://www.ftb.ca.gov/forms/misc/590.pdf

4.

5.

If a contractor is currently certified under a particular definition of service, and is to be hired for another purpose, a new Certification and Agreement must be approved;

BF-01 (Rev. 7/08)

INDEPENDENT CONTRACTOR'S PROCEDURES/GUIDELINES
Payments 9. ALL out-of-pocket expenses payable to the contractor must FIRST appear in the original Agreement as a portion of the Agreement total. ANY out-of-pocket expenses not originally calculated and accounted for in the Agreement may be denied when payment is requested on the invoice; Assistant Superintendent MUST approve ALL Agreements, with the Superintendent approving all those over $10,000; Dates of service MUST be shown on Agreement; Agreements to be paid over a period of time MUST be encumbered with a Purchase Order by the originating department. Questions should be directed to the Accounts Payable Department; ALL requests for payment must be on an invoice provided by the contractor; Contractors must understand that ALL payments to them based on the invoice submitted will be reported to the IRS on form 1099 for tax purposes. This would include out-of-pocket expenses that are a cost of doing business for the contractor. Original receipts are to be kept by the contractor for this purpose; Invoices indicating date(s) of service must be approved and coded by an appropriate Authorized Signer and be accompanied by a copy of the Agreement to be paid. Payment will NOT be processed unless ALL ORIGINAL signatures are present on both the Certification and Agreement and are present in the Accounts Payable office; Contractors are NOT to be paid by the hour. They are to be paid for the service provided and agreed to in the Agreement; NO advances will be given to individual contractors. Payments to contractors will be made based on services provided and approved.

10.

11. 12. 13.

14.

15.

16.

Clarifications 17. NO items on the Certification or Agreement are to be altered in any way. For example, the contractor may not line out the “Hold Harmless” section of the Agreement. Any such change makes the entire contract null and void; Agreements and Certifications become null and void on July 1 unless the contract involves a project year org key with an ending date beyond June 30. In that case, the contract expires upon termination of the grant. Contract must show proper end date;

18.

BF-01 (Rev. 7/08)

INDEPENDENT CONTRACTOR'S CERTIFICATION
I. Independent Contractor Work Description
Contractor's Title: Individual's Name: Brief Description of Consultant Services:

SS # :

II.

Independent Contractor Checklist
Common Law Factors (IRS Revenue Ruling 87-41)

Check items that are true for the worker you intend to hire: 1. No instructions: The worker will not be required to follow explicit instructions to accomplish the job. The employer may provide job specifications, however. 2. No training: The worker will not receive training provided by the employer. The worker will use independent methods to accomplish the work. 3. Work not essential to the employer: The employer's success or continuation does not depend on the services of the worker. 4. Right to hire others: The worker is being hired to provide a result, and will have the right to hire others for actual work. 5. Control of assistants: Assistants hired at worker's discretion; worker responsible for hiring, supervision, paying of assistants. 6. Not a continuing relationship: If frequent, will be at irregular intervals, on call, or whenever work is available. 7. Own work hours: Worker will establish work hours for the job. 8. Time to pursue other work: Since specific hours are not required, worker may work for other employers simultaneously. 9. Job location: Worker controls job location: no direction or supervision, whether on employer's site or not. 10. Order of work: Worker, rather than employer, determines order or sequence of steps in performance of work.
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BF-01 (Rev. 7/08)

INDEPENDENT CONTRACTOR'S CERTIFICATION 11. No interim reports: Only specific pre-determined reports defined in the contract document. 12. Basis of payment: Worker paid by the job, rather than time expended. Total compensation set in advance of starting the job. 13. Business expenses: Worker is responsible for incidental or special business expenses. 14. Tools and equipment: Worker furnishes the tools and equipment needed for the job. 15. Significant investment: Worker can perform services without using the employer's facilities. Worker's investment in own trade is real, essential, and adequate. 16. Possible profit or loss: Worker does these: (Check valid items).
a. b. c. d. e.

hires, directs, pays assistants; has equipment, facilities; has continuing and recurring liabilities; performs specific jobs for prices agreed upon in advance; worker's services affect own business reputation.

17. Work for multiple employers: Worker may perform services for more than one employer simultaneously. 18. Services available to the general public: (Check valid items).
a. b. c. d. e. f.

maintains an office; business license; business signs; advertises services; lists services in business directory; other (explain).

III.

Certification
This document certifies that I and my assigns have reviewed the appropriate legal and procedural guidelines pertinent to determination of Independent Contractor status, including the Independent Contractor Checklist, have analyzed their application to the position described on the accompanying documents, and have concluded that the hiring of the subject individual to perform the functions described does indeed constitute correct and legal Independent Contractor status. Program Administrator Assistant Superintendent Fiscal Services Date Date Date

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BF-01 (Rev. 7/08)

INDEPENDENT CONTRACTOR AGREEMENT BUTTE COUNTY OFFICE OF EDUCATION
This agreement, made and entered into this day of , 20 , by and

between the BUTTE COUNTY OFFICE OF EDUCATION, hereinafter referred to as "BCOE" (in conjunction with the department/program), and hereinafter referred to as INDEPENDENT CONTRACTOR." The following services, for and in consideration of the mutual promises and agreements herein contained, will be provided: ● SCOPE OF SERVICE:

● DATE(S) SERVICES TO BE PERFORMED/DELIVERED:

● LOCATION OF PERFORMANCE OF SERVICE:

● AMOUNT OF PAYMENT: BCOE shall pay a sum not to exceed $ to INDEPENDENT CONTRACTOR as

full payment for all services set forth herein. INDEPENDENT CONTRACTOR shall not be paid for any additional expenses incurred unless noted in contract or contract is amended by mutual agreement. Payment for services and expenses will be as follows:

INDEPENDENT CONTRACTOR shall be paid for reasonable and necessary expenses incurred during the scope of service as noted in this agreement. Invoices for services rendered and copies of receipts shall be submitted to BCOE by the INDEPENDENT CONTRACTOR. ● AMENDMENT OF CONTRACT: Said scope of service may be amended with the written approval of both BCOE and the INDEPENDENT CONTRACTOR.
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BF-01 (Rev. 7/08)

● RECORDS: INDEPENDENT CONTRACTOR shall maintain at all times complete detailed records with regard to work performed under this agreement in a form acceptable to BCOE, and BCOE shall have the right to inspect such records at any reasonable time. Notwithstanding any other terms to this agreement, no payments shall be made to INDEPENDENT CONTRACTOR until BCOE is satisfied that work of such value has been rendered pursuant to this agreement. ● NON-ASSIGN ABILITY: This agreement and the rights and duties thereunder shall not be assigned in whole or in part without the express written consent of BCOE. ● WORKERS' COMPENSATION INSURANCE: BCOE shall not provide workers' compensation insurance coverage for INDEPENDENT CONTRACTOR. ● CANCELLATION: This agreement may be canceled by BCOE or INDEPENDENT CONTRACTOR upon the giving of ten (10) days advance notice. Such notice shall be personally served or given by US Mail. In the event of cancellation, INDEPENDENT CONTRACTOR shall be paid for all work performed to the date of cancellation. ● HOLD HARMLESS AND INDEMNIFICATION: In accordance with the provisions of Section 895.4 of the Government Code of the State of California, each party hereto agrees to indemnify and hold the other party harmless from all liability for damage, actual or alleged, to persons or property arising out of or resulting from negligent acts or omissions of the indemnifying party. ● In witness whereof, the parties hereto have executed this agreement the day, month and year written above. INDEPENDENT CONTRACTOR Printed Name: Signature: Address: BUTTE COUNTY OFFICE OF EDUCATION Program Admin.: Asst. Supt: Superintendent:

Date:
CA Resident: Yes No

ACCOUNTING INFORMATION

SS #: Phone Number:
Retired CalSTRS Member: Yes No
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Org Key/ Object Code
BF-01 (Rev. 7/08)


				
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Description: INDEPENDENT-CONTRACTOR-AGREEMENT---bcoebuttek12caus