Standard Versus Professional Service

This information is for internal use on the CO Service Desk, not for use of other service desks.

Description

What is a standard service and what is a professional service?

Instructions

Using the correct type of requisition in EFS for the type of service being purchased avoids delays and rework. Each type of purchase order has slightly different terms and conditions and possible tax implications that need to be addressed depending on the type of service being purchased. The University groups services into two categories: standard services and professional services. See further information on this in the Create Requisitions manual.

Standard Service

"Off-the-shelf" services that are routinely provided to the general public usually at published rates without significant customizing.

  • Firms rather than individuals are likely to provide these services.
  • Examples include dry cleaning, extermination services, equipment maintenance, and courier services.

Professional Service

Services contracted with an individual, partnership, or corporation that
typically contain at least one of the following four criteria:


€¢ Specific skillset or expertise is needed.
€¢ Service is customized to meet the department's needs.
€¢ The services are NOT routinely available to the public at a standard
   rate or price.
€¢ Rate or price is negotiated with the supplier.

 

Note: Individuals contracted to perform a professional service must meet IRS guidelines to be hired and paid as independent contractors. Individuals who do not meet IRS guidelines must be hired and paid as University employees. This determination is made by accounts payable based on answers provided on the Professional Services Information Sheet (PSIS).

Questions should be directed to the University Financial Helpline at phone 612-624-1617 or email [email protected]