When an INDIVIDUAL will be providing services to the University, the following decision points regarding how to handle payment for services should be followed:
NOTE: For faculty teaching on‐line courses, refer to the Faculty Services Matrix
- Will the services being provided make the individual an employee? (use the Determination of Independent Contractor/Employee (ICE) form to determine)
Will the individual be providing consulting services?
Will the individual be providing course development or instructional design services?
- YES - Use the employment process (fixed term or wage payroll).
- NO - The person will be considered an independent contractor. Continue to question 2.
Will the individual be providing any of the services listed below?
- YES - An agreement or memorandum of understanding should be completed to clearly delineate the individual's responsibilities, including deliverables, time-frames and ownership of the course. This would be required to be included as part of the payment back‐up for the Special Request for Check (SRFC) paying the individual. Use object code 0393 ‐ Personal/Professional Services
- NO - continue to question 4.
Will the individual be a speaker, lecturer or presenter?
- YES - Follow instructions and guidelines provided for each service. Agreement and/or invoice is the back‐up for the payment by Special Request for Check to the individual. Use object code 0393 ‐ Personal and Professional Services.
- Catering Services - Must comply with University Policy AD26 ‐ Sale of Food and Beverage at University Locations and must also meet University insurance requirements. See Risk Management site for more details.
- Disc Jockey Services - See your Financial Officer. Must use the Disc Jockey Agreement. See Risk Management site site for more details.
- Stage, Sound and Lighting Services -See your Financial Officer. Must use the Stage, Sound and Lighting Agreement. Certain insurance requirements must also be met. See Risk Management site site for more details.
- Entertainment Services - See your Financial Officer. Must use the Master Entertainment Agreement, and depending on type of entertainment, may require meeting insurance requirements. See Risk Management site site for more detail.
NOTE: If these services are being obtained by a registered student organization, Student Affairs should be contacted to manage the agreement and procurement process.
- NO - continue to question 5.
Will the individual be providing photographic services?
- YES - University Scholar Agreement must be used (unless exceptions below apply) and payment should be made by SRFC with executed agreement as back‐up documentation. Use object code 0393 ‐ Personal/Professional Services.
- The individual is only being reimbursed for travel expenses - No agreement is necessary. Travel reimbursement should be made through ERS per University policy.
- The individual will be paid $1,000 or less - No agreement is necessary and honorarium payment may be made with no back‐up required. Use object code 0391 ‐ Honorarium.
NOTE: If recording or broadcasting of the presentation will occur, or if the individual wishes to sell merchandise, the University Scholar Agreement is REQUIRED, even if there will be no payment of compensation or reimbursement of travel.
- The individual requires use of their own agreement (Use of Penn State agreement preferred) - Agreement must be sent to Risk Management for negotiation and approval.
- The speaker is being engaged through Student Affairs - There is a Speaker Agreement that is part of the University Standardized Entertainment Agreement templates, which is much more detailed and generally used for extracurricular speaking engagements arranged through Student Affairs. This agreement should still be used for Student Affairs events, or events sponsored by registered student organizations, per Guideline FNG02 ‐ Limited Delegation of Contract Approvals.
- NO - continue to question 6.
- YES - Contact Risk Management to discuss ownership of images to be sure agreement is in place to address.
- Pay by Special Request for Check (SRFC)
- Use object code 0393 ‐ Personal and Professional Services
- NO - See Directions for all other services.
All Other Services
All other services provided by individuals should be paid by Special Request for Check (SRFC).
- Documentation of the services provided should be attached (i.e. invoice)
- Use object code 0393 ‐ Personal/Professional Services
- If there are any agreements or contracts, these must be sent to Risk Management for negotiation and approval.
- If the services being provided are valued at $10,000 or more, than Purchasing must be contacted to conduct a competitive purchasing process.
Services provided by companies
|Services provided by companies
|Non‐Incorporated (Partnership, LLC)
||1099PROSVC Purpose on SRFC*
* - NOTE: Medical Services to any payee must be paid as 1099PROSVC
Services provided by Companies over $10,000 in total MUST be procured through Purchasing with the exception of companies representing speakers or artists. In these cases, the contracts/agreements must be sent to Risk Management, and a SRFC can be used to make payment.