Individual Service Providers

There are four potential classifications for Independent Service Providers (ISPs): Honoraria, Limited Engagement, Independent Contractor, and Temporary Employee. Classifying ISPs is determined by the University policy for paying Independent Service Providers. A university employee who elects to retain the services of an individual must consult with the ASC Business Office prior to making an agreement for the provision of services.

Honoraria

Honoraria are payments made to individuals as a token of appreciation for participation in an activity or event (ex. guest speaker). Honoraria payments are not permitted to be negotiated or contracted.

Honoraria payments are processed via a Non-PO payment in the Penn Marketplace. For assistance processing an honoraria payment, please send the name, email address, and physical address of the honoraria recipient along with the amount of the honoraria to the ASC Business Office. The ASC Business Office will provide instructions for the individual to register in the Penn Marketplace and advise the individual that following forms will need to upload:

U.S. Citizens or U.S. Resident Aliens:

• Form W9 
• Guest Reimbursement Form
• Copy of email or other documentation detailing individual’s participation, date, and location of activity or event

Foreign National:

• Form W-8BEN 
• Guest Reimbursement Form
• Photocopy of main page of passport
• Photocopy of I-94 Document or Stamp of Entry (IRS I-94 Sample)

Limited Engagement

Limited Engagement is a service provided by an individual who performs one time per calendar year for the following service types: academic guest speaker; artist; presenter; special lecturer; distinguished guest speaker.

The following forms are required to process payment for a limited engagement:

U.S. Citizens or U.S. Resident Aliens:

• W-9 
• Limited Engagement Agreement - U.S. Citizens 
• Invoice (must include service fee and travel expenses)

Foreign Nationals:

• W-8BEN 
• Limited Engagement Agreement – Nonresident Aliens 
• Foreign National Information Form 
• Invoice (must include service fee and travel expenses)
• Photocopy of main page of passport
• Photocopy of I-94 document or Stamp of Entry
• Form 8233 (Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual and Certain Dependents) and the applicable statement under IRS Revenue Procedure 87-9. Tax treaty benefits are not automatic.

Independent Contractor

Independent Contractors must go through a classification process to determine if they qualify as a contractor under University policy, or whether they should be hired as an employee. A university employee who elects to retain the services of an individual contractor must consult with the ASC Business Office prior to making an agreement for the provision of services.

The following forms are required to complete the classification and payment process:

U.S. Citizens or U.S. Resident Aliens:

• Service Provider Questionnaire (completed by Independent Contractor)
• Service Provider Evaluation (completed by Business Office)
• W-9

Foreign Nationals (please consult with the Business Office if individual is a Foreign National):

• W-8BEN
• Foreign National Information Form
• Photocopy of main page of passport
• Photocopy of I-94 document or Stamp of Entry

Temporary Employees

If it is determined that the individual does not qualify for independent contractor status, the individual should be hired as a temporary employee. Please email the ASC Business Office to complete this process.