Independent Contractors

On January 1, 2017 the University implemented policy changes and a new process to properly classify and pay Individual Service Providers (ISP) including Independent Contractors and Limited Engagements, a subset of Independent Contractors. A new web page was set up, training is ongoing, and communications have been sent out.

Service Provider Classification

The Bottom Line December 2016

  • All new Independent Service Providers (ISP), classified as Independent Contractors but not considered Limited Engagements, must be onboarded and approved as a supplier/payee into the Penn Marketplace. When requesting to add an Independent Service Provider, Penn users will be required to upload the Service Provider Questionnaire (SPQ) and Service Provider Evaluation (SPE) form. Purchasing will review the request and will send the ISP an invitation to register on the Penn Marketplace portal. ISP can reference the Supplier/Payee Registration & Resource guide on the Purchasing website for more information.
    • A PO must be in place prior to any services rendered.
  • Independent Contractors determined to be Limited Engagements will be paid via Non-PO Payment Requests. A Limited Engagement is a subset of Independent Contractors comprised of two categories of service:
    • Guest speaker, guest lecturers, artists, performers, writers/editors, board members, critics, preceptors, and mentors of an academic nature and for a short duration.
    • A service provided by an individual of a dollar amount of $1,000 or less per transaction; $5,000 per calendar-year maximum. This is not to pay individuals on an hourly basis.
  • Any Non-PO Payment Request Forms for Independent Contractors determined to be ISP’s will be rejected.

Should you have any questions please contact the Worker Classification Help Desk

To register for an upcoming instructor-led class, go to Knowledgelink