The following information should help you identify whether a services or honoraria payment is the most appropriate payment method as well as the process to submit these two different types of payments. Contact Purchase, Pay & Travel Customer Service with any questions.
Following a recent audit of the Concur system as well as the processing of payments labeled as honorarium, Payment Processing has created a set of guidelines to help end-users differentiate between payments for services and honoraria.
Please familiarize yourself with these guidelines in order to avoid any delays in the processing of honoraria payments in the future.
Services Agreements: Identifying Independent Contractor vs. Employee
The following guidance is intended to assist with identifying an individual that you may wish to pay and the correct method of payment. Please review this guidance before submitting a services agreement through the PantherExpress System in the future:
- Prior to making an employment or contracting commitment, the department must determine whether the individual should be paid as an employee of the University or as an independent contractor, also known as Worker Classification. This step is important to ensure that the University complies with federal and state labor and tax laws. Follow the process outlined on our website, including completion of the 20-Factor Test.
- Dependent on the Worker Classification determination, individuals must be paid as follows:
- If the individual is not already an employee, they should be hired through All-Temps or full or part time by the department requesting the service.
- If the individual is already a Pitt employee, they should be processed under an Individual Compensation Plan, or ICP, formerly known as a supplemental payment request, for a second assignment – an additional duty not related to their primary role. ICPs are processed through the Compensation division of Human Resources.
- Independent Contractor - Establish the individual as an independent contractor in the PantherExpress System with a Supplier Verification Form and a W-9.
- For services valued at $10K or less - submit a fully executed Services Agreement (Short-Form Domestic) and the results of the 20-Factor Test as internal attachments through the PantherExpress System using the Services Agreement Specialty Form.
- For services valued greater than $10,000 - submit a Contract Entry Form, Schedule - A Scope of Services, and the results of the 20-Factor Test as an internal attachment through the PantherExpress System using the Services Agreement Specialty Form (additional documentation may be required, see the Services Agreement checklist for more information).
Foreign Individuals to Perform Services Outside of the United States
University departments may only contract with non-United States persons for services to be performed outside the United States in exceptional circumstance. Visit this page to learn more about international service agreements.
- Process for Identifying Independent Contractor vs. Employee (Worker Classification)
- At-a-Glance Worker Classification Guide
- Guidelines for Contractual Services vs. Honoraria Payments
- Employee Payments through HR: Individual Compensation Plan (ICP), formerly known as a supplemental payment request; All-Temps