Procuring Personal/ Professional Services

The Personal/Professional Services Contract (PSC) and Personal Services Invoice (PSI) are two standard forms used to procure personal/professional services from Independent Contractors. PLEASE NOTE: Per IRS regulations, the relationship of a person/entity performing services under a PSI or PSC must be that of an Independent Contractor, not an Employee. Using the Employee vs. Independent Contractor Checklist, you can determine whether the relationship of the person/entity providing services is considered an Independent Contractor or an Employee. This is an important step because there are financial consequences if the IRS determines PSU misclassified a service provider.

Independent Contractor: An Independent Contractor is an individual/firm that is not subject to PSU direction and control. Independent Contractors hire or dismiss their own associates, provide their own tools and equipment, advertise their services to other clients, are free to choose work methods, and carry their own insurance.

Employee: An Employee is an individual who is subject to PSU direction and control. An Employee can be dismissed or terminated “at will.” An Employee is provided a workplace and tools by PSU, and is covered by PSU Workers’ Compensation and Liability Insurance. PSU has the right to control and direct an Employee’s performance of the work, not only as to the result to be accomplished but also as to the details and means by which that result is accomplished.

Former PSU Employees: Per IRS regulations, a former PSU Employee cannot perform services for PSU under a PSI or PSC during the same tax/calendar year that they were paid on PSU's payroll. Per Union regulations, a prior Employee should NEVER perform services under a PSI or PSC that are the same, or significantly similar to the work they performed while an Employee.

Current PSU Employees: Per IRS regulations, active PSU Employees can not provide services via a PSI and PSC. In these instances, please work directly with your HR Liason to determine the most appropriate HR instrument to compensate for these services.

If it is determined that the relationship falls into the Employer/Employee category, you must contact Human Resources by email at askhr@pdx.edu or by phone at 5-4926 to determine the appropriate mechanism for compensating the individual, such as a Wage Agreement.

Employee vs. Independent Contractor Checklist

The PSI and PSC are two standard forms used to procure infrequent, technical, and unique services performed by independent contractors with specialized expertise of a technical, scientific, or artistic nature. The selection criteria for these services may include but are not limited to the Contractor’s skill, knowledge, reputation, and/or creativity. The cost of the service may be a secondary factor in the selection of the specific Contractor. Neither form can be used for services related to teaching a for-credit class or trade services. Trade services are those services that involve the application of manual or mechanical labor such as work performed by plumbers, electricians, or locksmiths. If procuring trade services, please contact Project Accounting. If procuring services related to teaching a for-credit class, please consult with Human Resources to execute a Wage Agreement.

If using Foundation funds to procure services, please review Foundation Policies/ Processes for Foundation-Funded Contracted Services.

PSI vs. PSC Flowchart

The PSI MAY be used:

For services costing $10,000 or less;
If total payments paid to the contractor by your Department in the calendar year does not exceed $10,000; AND
Where a single payment will be made.

The PSI cannot be used to procure services from a Non-Resident Alien or Foreign Entity.

Personal Service Invoice

The PSC MUST be used:

For services costing greater than $10,000;
If total payments paid to the contractor by your Department in the calendar year exceeds $10,000; OR
Where multiple payments will be made.

The PSC must be used to procure services from a Non-Resident Alien and Foreign Entity.

Personal Service Contract

Pursuant to Solicitation Thresholds, Contracts for Goods & Services valued over $50,000 must be sent out for Solicitation via either an Informal or Formal Solicitation process. If a department is executing a Contract for Goods & Services valued over $50,000, the Department must complete the Solicitation Request Form and submit it to CAPS at contract@pdx.edu. Upon receipt of the form, a CAPS Contract Officer will review the request and work on drafting the Informal or Formal Solicitation process documentation.* Uniform Guidance Solicitation Thresholds apply for Federally Funded Contracts.

Per IRS regulations, the relationship of a person/entity performing services under a PSI or PSC must be that of an Independent Contractor, not an Employee.