Business Services - Purchasing » Independent Contractor Process

Independent Contractor Process

An independent contractor is someone who provides services that are unrelated to the employer’s primary business and who offers these services to the general public. An employee is someone for whom Escondido Union High School District, as an employer, controls what work is to be performed, when the work is performed and where the work is performed.

As of September 2019, the State of California passed Assembly Bill No. 5 in regard to independent contractors and employment. This bill requires a test to determine the contractor meets the requirements, better known as the ABC Test. Some professions are considered exempt, and can be found listed in SEC. 2. 2750.3.

In order to hire an independent contractor, you must first complete the Employee-Employer Questionnaire (PDF below) to determine if the company or individual meets the IRS standard of being a contractor vs. an employee of the District. No Independent Contractor Agreements will be processed if the completed Employee-Employer Questionnaire is not attached and approved by an administrator.

The process below outlines what is needed for classifying, engaging and paying independent contractors:

Step 1, Prior to engagement:

 
1. Complete Evaluation of Evaluation of Employee-Employer Relationship Form
Step 2, when vendor passes the ABC Test:
3. All the required signatures will be gathered through our automated workflow. Contracts process is outlined in flow chart below.
Note: Vendor should complete New Vendor Application form during this time period to avoid delays in payment.
4. The Purchasing Department will route the appropriate contract to the vendor for signature via DocuSign. 
 
5. Once signed by all parties (and upon board approval if required), an electronic copy of the fully executed Contract will be returned to the individual who initiated the request and to the vendor

 

Step 3, After receipt of fully executed independent contractor agreement:

  1. Enter requisition in PeopleSoft, attaching the contract to your requisition
  2. Purchasing will create a purchase order and inform the contractor and department once complete.

Step 4, Invoices & Payment:

  1. Submit the contractor’s invoices to the District’s Accounts Payable Department and indicate the purchase order number on each invoice.
Helpful Links:
  • EUHSD Employee-Employer Relationship Evaluation Form: Linked below
  • EUHSD Contract Review and Approval Form: Linked below
  • EUHSD Contract Process: Linked below
  • CA Assembly Bill No. 5: Click here
  • AB5 ABC Test FAQ’s: Click here