The finance coordinator assists faculty and staff with purchasing services that promote UC business and are paid for using UC funds. In all cases, Purchase Orders must be submitted and approved before any service-type work can begin.
We do NOT have delegated authority to sign any contracts or agreements—regardless of dollar amount—especially where terms and conditions are presented. Anytime you see “terms and conditions,” a buyer must be involved!
UC highly recommends using purchase orders and the UC Agreement for the acquisition of goods and services and will usually not sign supplier agreements.
If a supplier insists on using their own agreement, they must provide the document in Word format and our buyer will ask for more information to determine the best route to complete the purchase (e.g., incorporating UC terms into the supplier's contract or choosing a different supplier).
Independent Contractors
Independent contractors include individuals or entities that perform a specific service for UCB based on a set price, pursuant to a scope of work and deliverables set by UCB. Independent contractors can include editors, indexers, cartographers, artists, translators, web designers, research assistants outside of UCB, and more. When planning to hire any independent contractor, know that vendors must show evidence of adequate insurance coverage (additional information below). Payments for services are not reimbursable so please consult with finance staff well in advance of your need to determine scope of work and lead time required to establish a plan for payment.
The financial coordinator will assist you in setting up a Purchase Order so that an independent contractor can begin working with you. In some cases, the proposed independent contractor will also need to be registered as a UCB vendor as well (more information in the “Supplier Vendoring” section). To hire an independent contractor you will need to submit the following information:
To request a new PO, gather and send the following documents to the financial coordinator:
Documentation Checklist
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Estimate or Proposal (provided by independent contractor)[Required]
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Statement of Work (completed by you) [Required]
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Certificate of Liability Insurance (provided by independent contractor)* [Required]
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Conflict of Interest Declaration Form (completed by independent contractor)** [Required if a potential conflict exists]
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Classification Worksheet for Federal Tax Purposes (to be completed by financial coordinator) [Required for individuals]
*Certificate of Liability Insurance (provided by independent contractor) [Required]
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Information for vendors:
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UC Regents must be listed as additional insured. Here’s an example of a certificate of insurance (PDF) that demonstrates this requirement.
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All proposed independent contractors must have proof of adequate liability insurance
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ANNUAL INSURANCE: Proposed independent contractors may be able to purchase coverage through CampusConnexions
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The cost for an annual policy that covers the work the vendor does at any of the 10 campuses for a 12-month period from the date of purchase is $750, and that cost can be written into the proposal for work.
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SPECIAL EVENTS INSURANCE:
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Insurance for vendors participating in one-day events put on by the campus can be purchased by going to : http://ucberk.campusconnexionsuc.com/other-constituents/tenant-user/even…
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The vendor/exhibitor coverage runs around $85-$100. It's good for the day of the event only. Again, at its discretion, the department may add some or all of the cost to the total value of the contract.
**Conflict of Interest Declaration (completed by independent contractor) [Required only if a potential conflict exists]
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When is this form required?
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This form is required if a supplier is any of the following:
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Current UC employee
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Former UC employee, who has been separated for less than two (2) years (retired, dismissed, separated, or formerly employed) This form is not needed if the employee has been separated for more than two years
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Current UC employee, who owns or controls ten percent (10%) or greater interest in a business that will provide goods or services to the University
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Near relative of a current UC employee (spouse, child, parent, brother, sister, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, sister-in-law, and step-relatives in the same relationship)
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Near relative of a current UC employee when that near relative owns or controls ten percent (10%) or greater interest in a business that will provide goods or services to the University.
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The declaration form must also be completed if any UC employee will be paid by the proposed company for the proposed transaction.
Supplier Vendoring
All individuals and entities who provide goods or services to UC Berkeley need to be registered as vendors before payment to them can be made.
The financial coordinator will assist potential new suppliers in registering online and help registered suppliers update their information as needed.
Honorarium Payments
An honorarium is normally a one-time payment granted in recognition of a special service or distinguished achievement for which propriety precludes setting a fixed price, such as a special lecture, participation in a workshop or panel discussion, or similar activities. If the fee is prescribed by the individual or if it is negotiated, an honorarium situation does not exist, rather a contract for services exists and the person will need to be set up as an independent contractor.
It is inappropriate to pay honoraria to individuals who make significant instructional contributions to a course, or to pay honoraria over several months, such as to visiting scholars.
Honoraria payments greater than $2,000 must be approved in advance by the Dean and the Assistant Dean and are subject to applicable sections of the Academic Personnel Manual. Payments to individuals are subject to income tax reporting and visa restrictions.
Groups cannot be paid via an honorarium. Payments for groups must be paid via a Purchase Order. Refer to the Independent Contractor section.
Honoraria Payments to UC Faculty from Other UC Campuses
The maximum honoraria rate that can be paid to University of California faculty is $1,500 (with exceptions allowed up to $3,000) per event. Exceptional honoraria paid to University of California faculty in excess of $3,000 require written approval from the Office of the President. Payment of honoraria to faculty from other UC campuses should be processed on an Intercampus One-Time Payment Form.
Non-Academic UC Staff
Non-academic staff members are not eligible to receive either honoraria or any other payments that are not related to the service they are providing as employees.
Independent Service and Honorarium Payments to California Non-Residents
Independent service and honorarium payments to California non-residents who come to California to perform service are subject to California State tax withholding at the rate of 7% if the gross payment is over $1500 per calendar year (FTB Pub 1017).
At year end, the California non-resident will receive from the University a Form 592B which reports the gross income paid and state tax withheld.
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The individual is responsible for filling a CA Form 540NR on or before April 15.
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Withholding can only be waived by the Franchise Tax Board – federal income tax treaties do not apply to state tax.
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To request a waiver for nonresident withholding, complete a California Form 588 and send to the Franchise Tax Board
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To request a reduced withholding for nonresidents, complete a California Form 589 and send to the Franchise Tax Board
Honoraria Payments to Foreign Individuals
Honoraria payments to foreign individuals are subject to the same guidelines as citizens and residents of the U.S. In addition, there are other requirements that must be met before a payment can be made.