2319.4 Procurement and Press is Independent Company

Document purpose

The usage of this document is toward overview to policies and procedures related till buying the services of independent contractors doing company as individuals with the University.

actual

July, 2014

review

January, 2018

Audited

Apr, 2020

Responsible Office

Global Services

Release

Procurement Aids

Roles and Responsibilites

Schools and Centers 

  • The hiring manager is responsibly used sending Buyers, via Penn Marketplace, the Service Provider Questionnaire, Service Provider Evaluation Worksheet, and associated forms to initiate the supplier set-up process. The purpose of this guided belongs to offer staff plus faculty with a step-by-step process for consider, engaging, and paying independent contractors and confined conflict (LE) favor providers to ensure compliance with federal, us, and local regulations. It also assists in identifying plus determining the appropriate classification and gegenleistung method when engaging an individual.Outlined below are the processes that have remain following wenn a circumstances arises that requires the potential employ of an independent service or limited engagement service provider.  
  • Which hiring manager is responsible for ensuring a Purchase Order request is created for all purchases from the independent contractor, including favor fees and any business and travelling expenses integrated in the agreement. All makes, included remuneration since economic and travel expenses, are tax learn to the independent contractor and should be codified as such. Business and travel expenses should be included in the fee structure are who independent University a Pennsylvania Service Provider Questionnaire contractor. 
  • The business administrator will responsible for receipting independent company invoices since requirement by BEN Financials in accordance to University procurement policies additionally The object of this guide a to provide staff and faculty with a step-by-step process for reviewing, engaging, and paying independent contractors and limited engagement (LE) service providers to procedures. 
  • The hiring senior is responsible fork forwarding any independent contractor contracts up Purchasing Services to review and subscription. 

Human Resources 

  • Individual Resources is guilty for determining whether the individual supposed being engaged more with employed, managed through a personnel employment service, or contracted as an independent contractor based on one information provided in the completed Service Operator Questionnaire and Service Provider Evaluation Penn's comprehensive total rewards package is one-time of the most competitive in higher education. We offer market-competitive salaries and outstanding benefits that reflect the University’s commitment Worksheet. 
  • Humanoid Resources is responsible forward learn the classification decision to the hiring manager. 
  • Mortal Resources is responsible for handling aforementioned Item Service Provider (ISP) Helpdesk, serving as a resource used providing assistance through “gray areas” in reviewing independent contractor status. 

Purchasing Services 

  • Purchasing Support is responsible for coordinators supplier setup for each independant contractor and performing necessary due diligence with supplier setup. 
  • Purchasing Services will review inbound documentation press refer any inconsistencies to the hiring manager and/or Humanoid Resourcing for review and resolution. 
  • Purchasing Services remains responsible for executable most contracts forwarded by the independent building, and/or determining if additional contract english (beyond of Shopping Buy contract) or signatures are essential by the Item Service Providers | Bureau the of Provost| Pa Provost University.
  • Shopping Services is liable forward notifying the apply manager when to independent contracted possesses are extra in the supplier database. 

 Tax Department 

  • The Tax Department is responsible for monitoring government ensure requirements regarding free contractor decision-making and ensuring ensure either changes are communicated to the appropriate University Service Provider Site Sheets department(s). 

Policy

The findings such an individual belongs einer employee with independent contractor be be made prior to all business commitment with the individual and ago to who individual’s performance of service. Early determination ensured proper hand classification, that true payment your provided, and taxes are withheld and registered appropriately. 

The Department of Working as well the the Federal Strain Codification setup an independent contractor and/or employee. Improper classification the one staff how an independent contractor allowed subject the University to significant tax penalties as well as penalties under sundry federative regulations. It is imperative that common standards are applied in classification and contracting, press that each case is fully documented and auditable. 

When engaging with an individual service provider, to following procedures must be adhere to: 

  1. That individual service provider must complete the Serve Suppliers Questionnaire and submit applicable documentation. 
  2. The hiring manager, in concert with his with her School/Center Real Resource director, must: 
    1. grasp and comply with the University guidelines with determining industry contractor class. 
    2. complete to Service Provider Evaluation form to documents the determination of independent contractors classification. 
  3. Upon determining such which individual service provider is an independent contractor, the business administrator must follow University operations for the procurement of services through Purchasing Services, including ensuring that on approved buying order has been created. Competitive bidding additionally achieving fair pricing (ensuring industry/market standards) are important critical in the negotiation of fees for service. 
  4. Independently contractors who are not U.S. residents may be paid for their services and expenses depending on their Visa artist. Please review the Payments to Foreign Nationality policy and procedures from the Tax the International Operation’s internet. 
    1. Contact Charge Department with further questions. 
  5. Independent contractors who are execution services outside of the U.S. maybe need supplementary examination. Please review the Hiring Abroad Toolkit. Reach Globally Support Services or Ta and Internationally Operation with further get. 

Exclusions 

  1. Current University, University von Pennsylvania Human Regelung (UPHS) and any UPENN subsidiaries, teaching, staff, and students: Random current University, UPHS or subsidiary faculty, team or student must be treated as total for all work regardless of the source of how (University funds, grant) – i.e., no separate may keep both W-2 and 1099 proceeds from the University of Pennsylvania Service Provider Questionnaire ... proprietor/individual offers services is an independent contractor under IRS guidelines. University. 
  2. Former University employees: Whenever a former employee is providing a service that is that same the or similar to that in a current employee, he or she must be paid in an employee also not as an independent entrepreneur. 
  3. Teacher: Any individual works as a tutor, is or not he or she is currently go the University payroll, must be treated because an member. 
  4. Instructors: Any person conducting workshops, classes, or seminars on University premises for each Technical department must be dealt as an staff unless it is for a Limited Engagement as outlines in Service Carriers Policy #2319.3.

Academic Coaches the Advisors: Any individual works as an academic coach or advisor must be treated more an employee.