The financial analyst, Joemari Cedro, assists department members with purchasing services in connection with University business that are paid for using UC funds. In all cases, Purchase Orders must be submitted and approved before any service-type work can begin.
Independent Contractors
Independent contractors include individuals or entities who 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 e.g. editors, indexers, graphic designers, artists, translators, etc. 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.
Joemari Cedro 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 (more information in the “Supplier Vendoring” section). To hire an independent contractor you will need to submit the following information:
Proof of Price Reasonableness & Source Justification (required for federally funded purchases ≥$10,000, including tax and shipping, & for non‐federally funded purchases ≥$100,000, excluding tax but including shipping).
Statement of Work (Written by requestor in coordination with independent contractor):
- Simple (for common, lower risk, lower-cost services).
- Complex (for longer-term/multi-year/multi-phase projects or when developing a Request for Proposal competitive bidding event).
Classification Worksheet for Federal Tax Purposes (Prepared by the requestor. The form,"Exhibit C," can be found on pages 21-23 of the PDF).
Supplier’s Rates/Quote Sheet (Furnished by the independent contractor).
Conflict of Interest Declaration* (Furnished by the independent contractor).
* only required if the proposed supplier meets any of the following criteria:
A. is a current UC employee;
B. is a former UC employee, who has been separated for less than two (2) years (retired, dismissed, or formerly employed);
C. is a 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;
D. is a 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);
E. is a near relative of a current UC employee, when that near relative owns or controls a ten percent (10%) or greater interest in a business that will provide goods or services to the University;
F. Any UC employee who will be paid by the proposed supplier/company for the proposed transaction.
Proof of Liability Insurance (Furnished by the independent contractor).
All proposed independent contractors must have proof of adequate liability insurance or an insurance waiver granted by the Department of Risk Services at UC Berkeley. Insurance waivers for independent contractors are rarely granted. If you are requesting an insurance waiver, your independent contractor will also need to complete this additional form: Conflict of Interest Certification
The financial analyst will submit a waiver request on your behalf to Risk Services and attach the Statement of Work and Conflict of Interest Certification.
Proposed independent contractors may be able to purchase coverage through CampusConnexions. 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.
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 analyst 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; in such cases a contract for services exists and the individual 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 $1,000 must be approved in advance by the Dean and are subject to applicable sections of the Academic Personnel Manual. Payments to individuals are subject to income tax reporting and visa restrictions.
Honoraria Payments to UC Faculty from Other UC Campuses
The maximum honorarium rate that can be paid to University of California faculty is $1,500 (with exceptions allowed up to $3,000) per event. All University of California faculty honorarium payments of $3,000 or less require the written approval of the Dean. Exceptional honoraria paid to University of California faculty in excess of $3,000 require written approval from the Office of the President.
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.
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.
To pay out an honorarium, the following information is required:
Honorarium Request Form and either copy of flyer or announcement for event, letter of invitation to the recipient, syllabus listing speaker, etc.
If your guest speaker will be paid through their agency instead of receiving payment directly, then an honorarium situation does not exist. Honoraria can only be paid to individuals and not through third parties. This will instead require a purchase order request for services, and will be handled similar to the process outlined above regarding independent contractors.