STANDARD SERVICE AGREEMENT GUIDELINES
Controller’s Office
A Guide to Engaging a Vendor for Services
Step 1:
Determine if Vendor is an Employee
or an Independent Contractor
/ Step / Action1 / Use the Independent Contractor Checklist form to determine if the vendor is an independent contractor or employee. This form must be submitted to Human Resources for approval. “The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.”-IRS
2 / If ... / Then ...
The vendor is an Employee / Call Human Resources to discuss
The vendor is an Independent Contractor / Follow the Independent Contractor Flowchart
Follow the Independent Contractor for Grants Flowchart (if applicable)
Step 2: Determine which Standard Agreement (SSA) applies
/ Standard Service Agreements are templates to use as a guide for contract negotiations. Use of the SSA template is preferred, although vendors may have their own contract, but they MUST contain the key elements in the SSA. Refer to the instructions on the “Forms, Policies, & Procedures” webpage on the University website to determine which SSA applies:If ... / Then ...
Cost < $1,000 (a single event) or <$5,000 (series of events) *See other criteria on webpage / No SSA is Required (for now)
Cost < $50,000 (less than one year duration, other criteria as noted in instructions) / Use Short Form SSA
Cost > $50,000 (more than one year duration, other criteria as noted in instructions) / Use Long Form SSA
Step 3:
Is the Vendor a Foreign Vendor?
/ Determining whether a Vendor is Foreign or not allows the University of the Pacific to determine taxation of payment. Follow the guidelines below if vendor is foreign…If ... / Then ...
Vendor is not Foreign / Vendor must complete Vendor Information Form (email Purchasing)
Vendor is Foreign / Department must provide Payroll with Vendor’s email address for Payroll to send Glacier link. Completion of Glacier advises both vendor and Payroll what documentation is needed and generates a tax summary.
Services are performed outside of the U.S. / Services are considered foreign sourced income. Payroll will forward the Foreign Source Statement & the individual/entity will complete and sign.
Documents to Submit
/ Department / Document(s)Accounts Payable / Submit check request, invoice, and if necessary, any other supporting documentation as appropriate per University policy.
(Please note: Additional documentation may be requested for purchases related to Grants, Capital Equipment, etc.)
Purchasing / Submit the Vendor Information Form (if new vendor) and a copy of the approved Independent Contractor Checklist. No SSA form required by Purchasing.
Your Department / Retain the SSA form and/or Independent Contractor Checklist
Note: At any given time, you may be asked to provide documentation for audit purposes.