Service Providers & Temporary Workers
Welcome to our Service Providers & Temporary Workers page! This resource is designed to help you navigate the process of engaging individuals for services, whether as independent contractors, temporary workers, or Limited Engagement (LE) service providers while ensuring compliance with federal, state, and local regulations.
Overview:
Each service provider (“worker”) must be appropriately classified as an employee or independent contractor in accordance with federal and state tax and employment laws. Schools and centers that engage workers must submit the required documentation to determine each worker’s status before any services are performed or payment requests are processed. All individuals who perform services for the University are presumed to be employees unless the relationship satisfies Internal Revenue Service (IRS) standards for independent contractor status. The evaluation must be based upon IRS standards and not upon administrative ease, budget constraints, or funding guidelines.
All independent contractor and limited engagement forms will be sent to Corporate Tax, Compliance, and Payroll for review and final determination via a BEN Helps Support Ticket.
The Corporate Tax Department will return the signed forms to the department with the determination. The determination will state whether the individual will be onboarded as an independent contractor, temporary employee, or compensated under a Limited Engagement Agreement.
Pre-Engagement Review:
To avoid any legal complications and to streamline the process, it is essential to conduct the review process BEFORE engaging or hiring any individual. This step ensures that all requirements and legal considerations are met before moving forward.
Please note that Penn employees are required to work primarily within the United States. Any employment activity abroad lasting 30 days or more requires prior approval from Global Support Services. For more information about work abroad, visit the Global Support Services website.
Note for Student Engagements:
These policies and practices are intended for the engagement of non- Penn students only. For guidance on engaging Penn students for work or services, please refer to Student Employment Guidelines.
For students working abroad, please review the Global Support Services site for additional information and resources.
Process
Independent Service Provider Process
For information on navigating the service provider classification process and payments, visit the Division of Finance website. A detailed description of the process is available for reference here.
Note: If the activity/service occurs outside of the United States, Global Support Services (GSS) may be consulted by the Corporate Tax, Compliance, and Payroll Specialist to determine whether the individual can be engaged as an independent contractor or a Professional Employment Organization (PEO).
Limited Engagement Process
A Limited Engagement (LE) Agreement is a payment to an individual (nonemployee/faculty, non-student) for providing a service of an academic nature, short duration, and/or low dollar amount ($1,000 or less per transaction; $5,000 per year max). This is intended for guest speakers, guest lecturers, artists, performers, writers/editors, board members, critics, preceptors, mentors, and/or those services meeting the fee guidelines.
See Policy #2319.3 – Payments Made for Limited Engagements
If the services fall under the Limited Engagement Agreement, review the procedural guidelines and required documents before the individual performs the work.
Temporary Employee Process
The University employs individuals in a variety of types to support and enhance the academic, research, and service missions of the University. Temporary staff allow a department to meet specific increased staffing needs for a limited period of time. Hiring temporary staff may be an effective way to manage peak periods for the business, cover employee absences, or provide additional support on large projects.
When establishing a temporary employee position, review the temporary staff policy and consider the following factors:
What are the responsibilities?
- What are the short-term needs this position will be supporting and why?
- Are there any current team members who can assist during this high-volume period?
- Ensure the appropriate scope of duties for temporary employees is aligned with University guidelines and policy. Departments should be cautious and judicious in limiting access to departmental and university data to ensure only what’s necessary to perform the job duties is provided. Access to departmental and university data may include but is not limited to: email, shared file storage (Penn Box, Drop Box, Google Space), licenses, communication channels (Microsoft Teams, Slack), building access (swipe access, keys), etc.
Consider the following data security factors as you establish this temporary position.
- Supervision: Provide appropriate oversight to ensure proper handling of departmental and university data.
- Confidentiality Agreement: Require a signed statement confirming awareness of and adherence to confidentiality policies.
- Limited Access: Grant access only to the departmental and university data necessary for job duties.
- Prohibit Usage, Storage, and Distribution: Departmental and university data must be stored in appropriate locations, used for job-related functions, and not removed from University devices or premises. Data should be secured properly and protected from unauthorized access, possession, or distribution. Any intentional compromise of data privacy or security is prohibited under University policies.
- Timely and Complete Access Revocation: Access rights should be promptly revoked when departmental and university data is no longer needed, such as when the nature of the role changes or when an employee departs the department or university. This ensures data integrity by limiting access to only those who require it for their responsibilities. Please follow the terminating procedures outlined below to ensure access is promptly and appropriately revoked.
What is the length of service needed?
- According to Penn’s temporary staff policy, employees working on campus may not remain on Penn’s payroll for more than 9 months.
- If your department needs a temporary employee for longer than this duration, please contact Wharton Human Resources for review and approval.
- How many hours per week are necessary to complete this work?
- Temporary employees are typically part-time, meaning less than 30 hours per week. If they are working full-time hours for an extended period of time, please connect with Wharton Human Resources to discuss.
What is the anticipated hourly rate?
- Hourly rates for temporary employees are typically aligned with the responsibilities of each position. Depending on the role, temporary employee hourly rates are typically between $15.00 – $30.00 per hour. If you think the hourly rate will be higher, please connect with Wharton Human Resources.
Where will this work be completed, on campus or off campus?
- If on campus, please follow the process outlined below.
- If off campus, individuals need to be payrolled through Apple One. Please follow the process below.
Once these factors have been identified, please complete a PIQ form for the temporary staff. This PIQ should include:
- Identified responsibilities;
- Length of service;
- Anticipated hourly rate.
On-Campus Temporary Employee Process
When hiring a temporary employee to work on Penn’s campus, whether in Philadelphia or San Francisco, follow these steps to onboard them onto Penn’s payroll:
- Create a job requisition for temporary staff in Workday.
- Work with the department’s business administrator for assistance in creating the job requisition.
- Positions with a length of service greater than 90 days must be posted for a minimum of three (3) calendar days.
- Identify a finalist and hire them into the Workday job requisition and associated position number.
- If you identify an individual who will be working off-campus while actively recruiting through a Workday job posting, you must follow the off-campus temporary staff process. In this case, the Workday job requisition and associated position number must be closed.
Off-Campus/Remote Temporary Employee Process
To ensure full compliance with university policies and regulations, all temporary employees working off-campus must be hired through AppleOne. This means that we will no longer directly hire temporary employees for off-campus roles at the University.
Please contact Apple One representatives Rachel Nelson (rnelson@appleone.com) and Keinse Alkhatib (kalkhatib@appleone.com) for assistance with onboarding individuals to their payroll. To assist with a smooth onboarding, please provide them with the candidate’s name, email, and phone number.
Termination of Temporary Employee
Immediate termination of access upon departure or change in role minimizes security risks and protects sensitive information. When terminating a temporary employee position, please take immediate action and follow the steps outlined below.
- If hired in Workday, please terminate their Workday record and close the associated position number.
- If payrolled through AppleOne, please contact AppleOne representative several days prior to separation.
- For all temporary employees exiting the University:
- A request should be made to Wharton Computing to revoke access to systems, platforms, email, Forticlient, licenses, etc.
- If applicable, a request should be made to Wharton Operations to revoke access to buildings and office space work. All suite or office keys should be obtained at the time of conversation.
Documents & Forms
- Service Provider Questionnaire
- Service Provider Evaluation Worksheet
- Independent Contractor Agreement Template
- IRS Common Law Test (Employee vs. Independent Contractor)
- Procedural Guide for Independent Contractors and Limited Engagement
- Limited Engagement Agreement – Services in the U.S. – U.S. Citizens
- Limited Engagement Agreement – Services in the U.S. – Non-Resident Alien
- Limited Engagement Agreement – Global services outside of US
- Considerations for International Independent Contractors
- Classification and Payment Training Available in Workday Learning
- Worker Classification Training Slide Deck