The University’s process to properly classify and pay individual service providers ensures the University’s compliance with U.S. Department of Labor, Internal Revenue Service, and other regulatory requirements related to the treatment of workers. The classification process includes:
- Employment Classification Process
- Payment to Individuals for Human Subject Fees
- Payment for Honoraria
- Limited Engagement
- Procurement, Payment and Reporting of Independent Contractors
The Individual Service Provider (ISP) Classification Process applies to workers who perform services for the university and are individuals, sole proprietors, or single-member LLCs.
Effective February 23, 2026, Procurement Contracting is responsible for the Individual Service Provider Classification Process. For new ISP Purchase Order (ISP-PO) suppliers, Schools and Centers will complete a consolidated New Supplier Request (NSR) in the Penn Marketplace that combines classification and onboarding into one streamlined submission to Procurement Contracting. Please check the Division of Finance Individual Service Provider Classification page here for the latest policies, forms, and guidance.