As a general rule, independent contractors or Limited Engagements are non-affiliates, but employees and students may also be classified as independent contractors or Limited Engagements if they perform non-employment-related services such as paid disc jockey services at a Penn event. Reimbursements to independent contractors or Limited Engagements are tax-reportable as a component of fees paid for services performed.
Hiring Managers must ensure that individual service providers (ISP) are properly classified as Independent Contractors through Human Resources’ Service Provider Classification process.
For assistance setting up ISPs in the Penn Marketplace, please review this ISP Resource Guide from Purchasing Services, available on the BEN Helps portal.
Proper use of object codes is necessary to ensure proper tax reporting for independent contractors or Limited Engagements.
Additional information, including object code information, can be found on the BEN Helps Support Portal.
For more information on hiring and paying international independent contractors, visit the Global Support Services website.