Payroll 110 Badge #02 - Who Are District Employees?-Payroll 110 Badge #2

Payroll 110 Badge #2 - PowerPoint

Pdf Summary

This WASBO Badge #2 module explains how to identify and classify school district workers and why correct classification matters for payroll, benefits, and legal compliance. A worker is generally an employee when the district controls when/where they work, assigns hours/days, provides training/materials/equipment, and the worker is covered by federal and state wage-and-hour laws. Benefits such as sick/vacation leave, holiday pay, and insurance further indicate an employer–employee relationship. District employees receive a Form W‑2 and pay applicable payroll taxes. Because a school district is part of local government, people working for the district are treated as local government employees.<br /><br />The module distinguishes certificated and classified staff. Certificated employees hold an OSPI-issued professional education certificate and work in positions requiring that certificate (e.g., teachers, counselors, librarians, psychologists, therapists, principals). They are typically salaried, placed on a salary schedule based on education and experience, work about 180 contracted days (plus CBA-defined additional days), are funded/managed by FTE, and are often paid monthly in 12 equal installments.<br /><br />Classified employees are those in positions that do not require an OSPI certificate (e.g., bus drivers, custodians, nutrition staff, secretaries, paraeducators, security, maintenance). They are typically hourly, paid according to an hourly salary schedule, and may have widely varying annual work schedules, often still paid in 12 equal payments depending on district practice.<br /><br />It also covers variable (“at-will”/seasonal) employees who lack regular schedules, such as substitutes, coach-only staff, and ASB workers not otherwise employed by the district. Substitute hours should be tracked for ACA/SEBB eligibility. Coaching pay differs by status: certificated coaches are often paid via supplemental contracts, while classified/coach-only staff must track hours and follow FLSA overtime rules.<br /><br />Finally, the module explains independent contractors: they typically control how work is done, may profit or lose, provide their own tools, are paid through Accounts Payable (not payroll), and receive a 1099 if paid over $600 annually. Misclassification can create tax liability and penalties; IRS behavioral, financial, and relationship factors help determine proper status.

Keywords

worker classification

employee vs independent contractor

school district payroll compliance

W-2 employees

1099 independent contractors

certificated staff (OSPI certificate)

classified staff (hourly employees)

FLSA wage and hour rules

ACA/SEBB eligibility tracking

misclassification tax penalties (IRS factors)