Professional Services Contracts (PSCs) and Professional Services Invoices (PSIs)

A PSCor PSIis required for all contracted services and must be completed before the contractor begins working.

Verify person’s employment status and eligibility for PSC or PSI

  • Review the Employee vs. Independent Contractor Checklist which can be found on the Forms & Documents page on the Contracting and Procurement Services website:
  • If the person received payment as a PSU employee during the current calendar year, the individual is not eligible for a PSC or PSI. PSU cannot issue both a W-2 and a 1099 to the same SSN or TIN for the same calendar year.
  • Verify employee status on Banner HRIS Employee screen [PEAEMPL]
  • If Employee Status is Active, contractor cannot be paid on a PSC or PSI
  • Exception 1: If Employee Status is Active, Current Hire Date is today, and most fields are blank, person is not a truly active employee and may be eligible (verify with Human Resources)
  • Exception 2: If Employment Status is Active, but the person has never been paid through payroll, the individual may have been hired in error. Coordinate with Human Resources to have Employee Status corrected before issuing PSC or PSI
  • If Employee Status is Terminated, verify last date of pay on Banner HRIS Pay Event List [PHILIST]. If the person received payment as an employee during current calendar year, the individual is not eligible for a PSC or PSU (PSU cannot issue both a W-2 and a 1099 to the same SSN or TIN for the same calendar year)
  • Verify services to be performed are PSC or PSI eligible
  • Non-instructional services are generally eligible
  • Guest Speaking and non-credit instruction services are eligible
  • Instruction for credit courses is not eligible and must be paid through payroll as an employee

Vendor Set Up

  • A PSU Substitute W-9/ACH (Direct Deposit) Formis required from all new contractors to be set up as avendor. This form and Vendor Setup instructions can be found on the FormPolicies page (Accounts Payable section) of the Finance and Accounting Services Team website:
  • If the contractor is a foreign alien/entity, a W-8 form is required. See the back of the PSU Substitute W-9/ACHform for instructions.
  • To check to see if the contractor is already a vendor:

Check Banner Address List Inquiry screen [PPIADDR] for available address types. Generally, contractors with VO and VP address types are already setup as vendors and do not need to submit a completed Form W-9.

  • If the contractor is not already a vendor,
    a) Email or mail the PSU Substitute W-9/ACH Form to the contractorand instruct the contractor to complete the form and fax it directly to the secure Campus Accounting Services fax line at 503-725-3400. Alternately, the contractor may mail the form to Campus Accounting Services at the address on the bottom of the form. To safeguard the contractor’s personal information (SS#, banking information, etc.),the department should not collect this form from the contractor and then transmit it (by any method) to Campus Accounting Services.If the Contractor mistakenly sends the W-9 form back to you, immediately fax it to Campus Accounting Services at the secure fax and shred the form or place it in a secure shredding bin. Do not retain a copy.

b) Send an email to that includes the name of the person, address, and phone number of the vendor from whom you have requested the PSU Substitute W-9/ACH form. This will allow Campus Accounting Services to contact you if there are questions and provide you with the Banner vendor number when established.

Department completes appropriate PSC or PSI form

  • Forms and detailed instructions can be found on the Forms & Documents page of the Contracting and Procurement Services website:

PSI formmay be used when:

  • Work will be completed within three weeks
  • A single payment will be made to contractor and exact amount is predetermined
  • Payment for services does not exceed $5,000
  • Contractor is a US Citizen/Corporation/Partnership or Resident Alien

PSC should be used when the PSI form does not apply (work not completed within 3 weeks; and/or payment exceeding $5,000; and/or multiple payments to contractor)
See additional guidelines for each form on the Forms & Documents page of the Contracting and Procurement Services website:

  • Department obtains department signatures on the PSC or PSI and then sends to contractor for signature. Department keeps a copy of the PSC or PSI for their records.
  • Department forwards completedoriginal signed PSC or PSI to GSE finance stafffor processing
  • PSIsare invoices and should beforwarded to GSE finance staff for payment processing afterwork is completed. No invoice from the contractor is needed.
  • PSCs are contracts and should be forwarded to GSE finance staff for Purchase Order setup and Contracting & Procurement Services approval signature beforework is completed. After work is completed, an invoice from the contractor is needed to process payment.
  • GSE finance staff reviews form for accuracy, adds correct account codes, ensures form is correctly entered in Banner, and initiates new vendor set up (for some departments)
  • PSIs are entered as an invoice after the work is completed
  • PSCs are entered as a Purchase Order before the work is completed
  • GSE finance staff retains electronic copy for the GSE I:drive files, and forwards PSC to Contracting & Procurement Services for processing. PSIs are forwarded to Campus Accounting Services for payment processing.
  • PSC only - Department forwards contractor invoices to GSE finance staffafter work is completedfor payment processing against Purchase Order

Rev. 10/20/14