|
EMPLOYEE & WALK-ON COMPENSATION EMPLOYEE/INDEPENDENT CONTRACTOR CLASSIFICATION ALL EMPLOYEE COMPENSATION IS TO BE THROUGH THE PAYROLL PROCESS. This means any extra-duty, extra-pay or stipend situation. For example, if an ASB agrees to pay for coaching, supervision, or staffing of any sort, an extra pay compensation worksheet, change of status form or employee timecard is to be filled out and sent to Payroll along with a check made out to IUSD to cover the cost of the compensation, including benefits. (Please be sure to note the appropriate budget number and employee name on the check and to include two copies of the check. Payroll will forward the check to Accounting.) The employee will receive the extra pay on his or her paycheck in addition to normal salary compensation. Remember that, by law, employee compensation is subject to certain withholding or so-called salary benefits. So, if you promise an employee, say $25, in compensation for an activity, you would have to remit an amount more than $25 to cover these salary benefits in order for the employee to receive the full $25. (The change of status form should instruct Payroll as to the actual amount you wish to pay the employee - in this example, $25) The costs by salary type appear on the intranet or you may contact the Payroll department for assistance. THE IRS HAS A VERY NARROW ACCEPTABLE DEFINITION OF A SO-CALLEDAINDEPENDENT CONTRACTOR, A WALK-ON, OR CONSULTANT VERSUS SOMEONE WHO SHOULD BE CLASSIFIED AS AN EMPLOYEE. The IRS, in defining an employee, states, anyone who performs services is an employee if you, as an employer, can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the legal right to control the method and result of the services. Some, but not all, tests to determine an employee/employer relationship are: work relationship is continuing; work is done on employer's premises; worker must submit oral or written reports. There are others. If you have any question regarding the appropriate classification, contact Human Resources. BOOSTER CLUBS The issue here is compensation from funds over which the district is required to maintain financial oversight: the general fund, grant and entitlement funds operated through the general fund (and they all are), and ASB funds. A booster club should maintain its budget and checking account separate from any district's or ASB account. If a booster club maintains its funds separate from the district or ASB funds, it may support activities in any legitimate manner deemed appropriate by its governing board and charter. That is, it may hire, as an independent contractor, an accompanist or a set designer. The booster club's compliance with tax code would not be an area of district concern. OVERTIME Classified, nonexempt employees are subject to the Fair
Labor Standards Act (and may not waive their rights to overtime compensation.) The FLSA
requires that all covered and nonexempt employees be paid not less than the minimum wage
per hour and not less than one and one-half times their regular rates of pay for all hours
worked more than 40 in a workweek. The FLSA further states that state and local government
agency employees, may, at their option, work OCCASIONALLY and SPORADICALLY
on a part-time basis for the same public agency in a DIFFERENT CAPACITY from their
regular employment, and the hours worked in two jobs need not be combined for the purpose
of determining overtime pay liability. Under section 7 (p) (2) it is essential that such
work be INTERMITTENT and IRREGULAR rather than being so continuous and
regular that it constitutes a second and separate employment relationship. For example, if
an employee, in addition to his or her regular job, also regularly works additional hours
on a part-time basis (e.g., every week or every other week) the additional work
constitutes a second job and the hours worked must be combined in computing any overtime
compensation due under FLSA. Certificated employees are not covered under FLSA.
ELIGIBLE INDEPENDENT CONTRACTOR COMPENSATION Most important rule of thumb: No IUSD employee, including a walk-on coach, may be hired as an independent contractor to perform ASB or other activities. If you feel you have a legitimate independent contractor situation, please remember that the contractor must work independently without supervision and must file a W-9 Request for Taxpayer Identification Number and Certification form with the district's purchasing department. A 1099 filing is required for any person who is compensated in excess of $600 in a calendar year. The hiring of independent contractors compensated through general fund budgets are also subject to specific procedures, including board approval. These independent contractors are processed through the Human Resources department.
|