Handbook of Business Procedures

12.2. AUTHORIZATIONS

Before services are provided by an individual person (i.e. a natural person, a sole proprietor business, or a single-member LLC that is disregarded for federal tax purposes) to the University, the services must be authorized via a purchase order (PO), a business contract, or an Exempted Services Authorization Form (ESAF).

Before initiating authorization, first complete an Employee/Independent Contractor Classification Checklist (EICCC) to determine whether the individual is an “Independent Contractor” or “Employee”.

• If “Independent Contractor” is the result, use one of the authorizations listed below for the services.
• If “Employee” is the result, authorize the work through the payroll system (i.e. Workday).

See the Tax Services EICCC website for more information.

Please note that services provided by a legal entity (e.g. Inc., LLC that is not disregarded for federal tax purposes, LP, or LLP) are not covered by this procedure.

A. Purchase Order

Use a purchase order (PO) to procure most services, subject to the specific bidding requirements set forth in Part 7.4 Purchasing Process.

The University’s purchase order system (i.e. POINT Plus) requires an individual person to have a valid U.S. Tax Number (i.e. SSN or ITIN) before it will generate a purchase order. If an individual person does not have a U.S. Tax Number because they are a foreign person, a business contract will be needed to authorize the services. 

Please see the Purchasing Office page or contact the CSU Buyer Team for additional information.

B. Business Contract

Use a business contract to authorize the services only if:

• An individual requires their contract be signed by University.
• An individual is making a presentation or speech that will be recorded.
• An individual requires special terms or conditions, such as travel arrangements that cannot meet the University’s Travel Accountable Plans rules or reimbursement limits per HBP Part 11. Travel.
• An individual is a foreign person without a U.S. Tax Number.

For more information about contracts, please contact Business Contracts.

C. Exempted Services Authorization Form

Use an Exempted Services Authorization Form (ESAF) to authorize only the following services:

• An event judge or referee
• Attendance at a workshop or conference
• K-12 Teacher Mentors / Field Supervisors
• Advisory Board Members
• Workshop / Conference Speakers / Trainers
• Spousal or family travel for a prospective employee

An ESAF cannot be used if the individual is a foreign person. For more information on the ESAF, please contact Tax Services.

D. Other

If services were provided to the University without prior authorization, contact the Purchasing Office for guidance.

Part 12. Independent Contractors - Table of Contents