Supersedes: Not Applicable
Issuance Date: 08/12/1982
Issuing Office: Office of Contracts and Grant Administration
UCSD Policy and Procedure Manual (PPM)
Retainment of Individuals as Independent Contractors
General University Accounts Receivable & Delinquency System (GUARD) Invoicing and Collection
Sometimes the most economically feasible method to effect certain types of business transactions is to offer individuals a percentage of sales/revenues (for example, advertising income for campus newspapers) in the form of a commission. These individuals may or may not already be employed by the University in another capacity.
Commissions may be paid to individuals who, with the approval of the Business Office, have signed the \f2Commission Agreement, Exhibit A\f1. The University cannot and will not assume liability for \f2Agreements\f1 signed by departments and individuals which do not have Business Office approval. The following guidelines must be followed when commission payments result.
Approval of the commission plan.
Apporval of the Commission Agreement.
Staff Personnel Management Office - only if the individual is already employed or is to be employed in a capacity other that covered by the Commission Agreement.
Submission of a Job Description.
Submission of an Employment Requisition.
Student Personnel Office - if the individual is a student.
Processing of Guard invoices for customer billing.
Processing of requests for payment of commission. (The Check Request Form should reference the Commission Agreement and payee Social Security Number)
Will be considered an Independent Contractor in carrying out the duties outlined in the Commission Agreement.
Will be responsible for any taxes due to taxing agencies. (Exception - state income tax will be withheld if sales person is a non-resident.)
Will bear any ordinary and necessary expenses incurred in the pursuing of sales.
Will not be considered as a University employee, and must not pose as an employee, regardless of whether or not another position is held that satisfies the employee/employer relationship in an unrelated job.
Will not be covered by Worker's Compensation Insurance by the University.
Will not be paid commission prior to receipt by the University of money due from the business transaction.
Will furnish department with his/her Social Security number.
Commission Agreement signature authorization shall be delegated to those who have authorization to sign personnel forms.
The Business Office shall retain the fully executed \f2Commission Agreement\f1 for a period of not less than four years following the Agreement's completion date. The Business Office is the Office of Record.
The Business Office shall distribute executed Commission Agreement copies to:
Staff or Student Personnel as appropriate.
Accounting Office/Disbursement Division.
Originating department will prepare and submit Check Request form to Accounting / Disbursement Division for payment of commissions. The Check Request form should include the payee's Social Security number, permanent home address, and should reference the Commission Agreement.
THIS AGREEMENT is made by and between The Regents of the University of California (hereinafter called "University") and _______________________________(hereinafter called "Salesperson").
Salesperson shall not accept cash and shall not accept checks, drafts or money orders made payable to Salesperson.
Premiums on all insurance policies shall be paid directly by Salesperson.
SALESPERSON THE REGENTS OF THE
UNIVERSITY OF CALIFORNIA
*Pursuant to Federal Privacy Act of 1974, you are hereby notified that disclosure of your social security number is mandatory. Disclosure of the social security number is required pursuant to Sections 6011 and 6051 of Subtitle F of the Internal Revenue Code and Regulation 4, Section 404.1256, Code of Federal Regulations, under Section 218, Title II of the Social Security Act, as amended. The social security number is to verify your identity. The principal uses of the number shall be to report payments to Federal and State governments.
The State of California Information Practices Act of 1977, effective July 1, 1978, requires the University to provide the following information to individuals who are asked to supply information about themselves.
The principal purpose for requesting this information on this form is to report payment for income tax purposes to Federal and State governments, as applicable. University policy and State and Federal statues authorize the maintenance of this information.
Furnishing all information requested on this form is mandatory--failure to provide such information will delay or may even prevent the payment for which this form is being filled out. Information furnished on this form is used by University departments for nonpayroll payments, and may be transmitted to the State and Federal governments as required by law.
Individuals have the right of access to this record as it pertains to themselves.
Business Office is responsible for maintaining this information on this form.