Honoraria & Individual Service Providers
There are four potential options for paying Independent Service Providers (ISPs), outlined below. A University employee who elects to retain the services of an individual must contact the ASC Business Office prior to making an agreement for the provision of services. The Business Office can help determine which classification and payment type is appropriate.
Honoraria
Honoraria are one-time payments made to individuals as a token of appreciation for participation in an activity or event (ex. guest speaker). Honorarium payments are not permitted to be negotiated or contracted. An individual’s eligibility to receive an honorarium depends on their citizenship and visa status, as outlined here.
Honorarium payments are processed via a Non-PO payment in the Penn Marketplace. For assistance processing an honorarium payment, please send the name, email address, and documentation of the activity or event (e.g., event flyer or invitation) along with the amount of the honorarium and budget code to the ASC Business Office.
Resources
Honoraria and Guest Reimbursement Guidelines and Required Forms
Limited Engagement
Limited Engagement (LE) is a service provided by an individual that is limited in scope and duration, and meets the eligibility criteria outlined here (PennKey login required), effective February 23, 2026. The University provides resources for determining LE eligibility, and you can contact the ASC Business Office if you need assistance.
Resources
How do I make an accurate initial Worker Classification (Decision Tree)? (PennKey login required)
ISP Policies and Procedures (PennKey login required)
Overview of the Independent Service Provider (ISP) Classification & Onboarding Process (PennKey login required)
Independent Contractor
If an ISP does not meet LE criteria, they must undergo a classification process to determine whether they qualify as a contractor under University policy or should be hired as an employee. A University employee who elects to retain the services of an individual must contact the ASC Business Office prior to making an agreement for the provision of services. The University provides resources for determining Independent Contractor eligibility, and the Business Office can provide additional guidance.
Resources
How do I make an accurate initial Worker Classification (Decision Tree)? (PennKey login required)
ISP Policies and Procedures (PennKey login required)
Overview of the Independent Service Provider (ISP) Classification & Onboarding Process (PennKey login required)
Temporary Employees
If it is determined that the individual does not qualify for Limited Engagement or independent contractor status, the individual should be hired as a temporary employee. Please email the ASC Business Office to complete this process.