Policy Steward: 
Director of Vendor Payment Strategies
Format Updated: 
University Policy & Standards Converted: 
Revision Date: 
Thursday, November 11, 2010

* This information replaces FIS 410-25 Payment for Services


Companies and individuals are hired and paid for their services using one of the following documents:

  • Formal contract generated as a result of an RFP or Invitation to Bid initiated by Procurement and Contract Services.
  • Personal/Professional Services Contract (PSC) approved by Procurement and Contract Services.
  • Personal Services Invoice (PSI) for all personal or professional services that are $5,000 or less are prepared at the unit level.  A Personal Services Invoice is not to be used for architectural or engineering services.
  • Purchase order prepared by PaCS or at the Unit level.
  • Informal purchase order (PO) for local retail businesses.  See AutoPay Vendor List on Business Affairs website.

Account Codes Used For Payments:

  • Incorporated companies with federal tax ID numbers should be paid using the appropriate account code for the services they have provided (review account codes 245xx through 24616).
  • University-wide, long-term contracts with employment agencies such as St. Vincent dePaul should be paid using account code 24530 – Contract Personnel Services.
  • Bands and music groups giving a public performance should be paid using account code 24505 – Performance Fees.  Account code 24599 should be used when paying an instructional related activity, such as an accompanist for a music class.
  • “Consultants”, seminar speakers, athletic officials, and others doing “Other Professional Services” should be paid on account code 24599 – Other Professional Services.   However, “consultants” does not apply to professional services for architectural or engineering services.  Those contracts are handled separately through Business Services and Procurement & Construction Contracting.
  • Payment for services (245xx-24999 account codes) using a non-incorporated entity should have either a PSC or PSI attached.  Most common services in this area are editing, publishing and web design.

Except for speakers, direct unit billing is not allowed for airfare, lodging, or meals.  The PSC/PSI should include any travel-related expenses, either as part of the hourly/daily rate or separately identified.  When processing a payment for separately identified travel, pay as a lump sum using the appropriate taxable account code.  DO NOT ATTACH RECEIPTS.  These payments are taxable income of the contractor and the contractor must keep their receipts.

Personal Services Invoices (PSI’s) can be processed for payment no earlier than 20 days prior to service, with the check pickup within one week of the services rendered for speakers, referees, and entertainers.  This is for one-time service agreements, where the person or group being employed is at the University location only for that event and is then departing.  This option is not allowable for Personal Services Contracts (PSC’s) under a long-term contract.

To process a payment, the Business Center must have the following:

  • Original vendor invoice with copy of the PSC, or the original PSC
  • Banner “I” document number with the appropriate index, account code, signatures, and unit approvals.

Personal Services Agreements with Foreign Nationals – See Government Publication 901 for a list of countries with whom the US has treaties.  The list of countries can be found on pages 35 through 47.  For persons from non-treaty countries, the university must take a 30% withholding.  For further information regarding the payment of foreign nationals, contact Business Affairs and see reference 413 Non-Resident Aliens (NRA).

See Procurement and Contract Services website for downloadable contracts and forms.

See PaCS 401: Employee v. Independent Contractor for the Guidelines on Determining if a Worker is an Employee or Independent Contractor.

See the General University Policy  for Employees Doing Business with Oregon State University.