Employees vs Consultants (Independent Contractors): The University classifies and pays individuals who provide services as Employees unless the nature of the services and other circumstances satisfy the criteria for Independent Contractor status. Columbia University hires Consultants and Service Providers to accomplish the objectives of the University when such Services are specialized, highly technical, and commercially available and cannot be economically or satisfactorily performed by University employees as part of their normal duties.
An individual or company receiving a portion of the funds from the sponsored project is considered a consultant if he/she/it:
•Is an expert advisor;
•Is paid for time spent on a fixed hourly/daily basis, which includes travel expenses, supplies, etc.;
•Is using his/her/its own equipment and materials, not equipment or materials from his/her/its institution, for the work on the project;
•Is providing services that are specialized, highly technical, and commercially available;
•Is considered to be paid a “fee for service” whose work and IP belong to Columbia University;
•Pays his/her/its own taxes on earnings from the project;
•Is not employed by Columbia University in any other capacity; and/or
•Is not involved in programmatic work on the project; including project deliverables such as reports.
The Internal Revenue Service (IRS) analyzes specific characteristics, such as behavioral and financial control and the relationship between the employer and the individual performing services. An example of behavioral control is when the Department/School provides direct instruction/supervision of the contracted provider. Service Providers are Independent Contractors and as such are not overseen by the contracting party in this manner. They supervise their own actions to accomplish the goals and expectations articulated through an agreement and Scope of Work.
Resources:
Classification of Independent Contractors versus Employees
Process – Consultants Service Providers Supporting Documents/Forms
Department:
The description and instructions below go along with the image below - Please click on the image below to see it in full size as you read this guide.
1. Total Direct Expenses > Current Estimate: The value represents the total annual budget for the given fiscal year
2. Total Direct Expense > Actual to Date Month: Any transactions that occurred in the given month being reported on will be reflected in this column. If there is any spending that occurred on your account in the given month, a PDF of the detailed spending by category will be attached for your review.
3. Total Direct Expense > Actual to Date Year: Any transactions that occurred in the given fiscal year being reported on will be reflected in this column. Please note: the fiscal year begins on 7/1 and ends on 6/30.
4. Total Direct Expense > Balance Before Commitment: This line reflects your balance before any commitments such as Open Vouchers and Encumbrances and (more details below).
5. Total Direct Expenses > Open Vouchers: Please refer to any category where the "open vouchers" column is populated. This reflects pending reimbursements and/or invoices for that category.
6. Total Direct Expenses > Encumbrance: Please refer to any category where the "encumbrance" column is populated. This reflects a commitment (usually a Purchase Order or salary) for that category.
7. Total Direct Expenses > Budget Balance Available: This value reflects your balance after Encumbrances, Open Vouchers and Salary/Fringe totals. So it includes all PO's, commitments, reimbursements, salary charges and more accurately reflects the actual budget left to spend on the account.
Please click the image to see it in full size!
Department:
The description and instructions below go along with the image below. (Please click on the image below to see it in full size as you read this guide)
- Total Direct Expense > Project Budget: This value represents the budget allotted for direct expenses on your account. Please note: depending on the payment schedule for the award this may only reflect a portion of the overall project budget.
- Total Direct Expense > Actual to Date Month: Any transactions that occurred in the given month being reported on will be reflected in this column. If there was any spending that occurred on your account in the given month, a PDF of the detailed spending by category will be attached for your review.
- Total Direct Expense > Balance Before Commitment: This line reflects your available balance before any commitments such as Open Vouchers and Encumbrances and (more details below).
- Total Direct Expenses > Encumbrance: Please refer to any category where the "encumbrance" column is populated. This reflects a commitment (usually a Purchase Order or salary) for that category.
- Total Direct Expenses > Accruals or Open Vouchers: Please refer to any category where the "open vouchers" column is populated. This reflects pending reimbursements and/or invoices for that category.
- Total Direct Expenses > Budget Balance Available: This value reflects your available balance after Encumbrances, Open Vouchers and Salary/Fringe totals. It includes all PO's, commitments, reimbursements, salary charges. This column most accurately reflects the available balance left to spend on the account.
- Current F&A Base and Rate: The indirect cost rate being charged on the award.
Department:
Travel ‐ Reimbursable Expenses
- Baggage handling
- Storage expenses
- Business office expenses
- Business‐related calls and faxes
- Up to 3 personal calls per day of reasonable duration
- Currency conversion fees
- Gratuities to porters, bellhops and other service personnel
- Internet access
- Laundry or cleaning expenses on trips lasting over 5 days
- ATM fees and traveler check fees
- Ground transportation
- Parking and tolls
- Travel change/cancellation fees (if required for business needs)
Travel ‐ Non‐Reimbursable Expenses
- Airline club membership dues or one‐day admission fees
- Air‐phone usage
- Baby‐sitting
- Barbers & hairdressers
- Clothing (purchase or rental)
- Toiletry items
- More than 3 personal calls each day, unless emergency circumstances are documented
- Expenses related to vacation taken before, during, or after a business trip.
- Frequent flyer miles
- Helicopter services for local travel/entertainment
- Snacks
- Loss or theft of cash advance
- Loss of airline tickets
- Loss or theft of personal fund
- Lost baggage
- Luggage and briefcases
- Personal reading materials
- Medical expenses while traveling
- Mini‐bar alcoholic expenses
- Movies
- Personal entertainment
- Pet care
- Recreational expenses
- Saunas, massages
- Shoe Shines
- Souvenirs, or personal purchases
- Travel Insurance
Employee Entertainment Expenses:
Reimbursable Business Occasions
- Dissertation defense
- Promotion
- Welcoming a new hire to the University
- Leaving the University
- Years of Service/Retirement
- Graduation of an employee/student
- Awarding of tenure
- Publication
- Event or performance opening
- Sabbatical
- Recognition of achievement, departmental goal, honor, or thank you
Other Reimbursable Employee Entertainment
- Departmental celebration of a holiday
- Collective celebrations of birthdays
- Congratulations on business related individual achievement
Non‐Reimbursable Employee Entertainment
- Showers for birth or adoption of baby
- Engagements, weddings, anniversaries,
- Individual birthday celebrations
- Congratulations on personal related individual achievement
Department:
The TBER form is complex, with numerous fields and tabs, but you only need to complete a few sections.
Please complete only the following sections on the TBER form:
(T&B tab)
- Travel or Business Expenses
- First dat of expense and travel end date
- Employee (payee name)
- Payee's home address
- Payee's signature
- Overall business purpose
- Itemized expenses descriptions
(Avg Rate Tab) Currency Conversion Worksheet:
- Payee Name
- First date of the expense exchange rate
- Last date of the expense exchange rate
- Description of expenses
The remaining boxes will be complete by the department.
Department: