Payment Terms
State rate (flat fee or hourly), currency, overtime rules, and payment method such as ACH or check, with invoicing timing.
A written Instructor Pay Agreement reduces payment disputes, clarifies tax responsibilities, documents deliverables and timelines, and protects both parties by recording agreed terms and remedies in a legally enforceable format.
Use this agreement when duties, payment, or tax treatment need clear, documented terms to reduce legal and administrative risk.
State rate (flat fee or hourly), currency, overtime rules, and payment method such as ACH or check, with invoicing timing.
Define duties, deliverables, course hours, location or platform, materials to provide, and performance standards or milestones.
Specify invoice frequency, required invoice content, submission method, and payment due date after receipt.
Declare whether instructor is contractor or employee, require W-9 for contractors, and note backup withholding consequences for incorrect TINs.
Include non-disclosure and IP assignment terms if instruction involves proprietary materials or course content.
State notice requirements, final payment terms, prorated compensation, and consequences for early termination or breach.
| Field | Configuration |
|---|---|
| Routing Order | Finance -> Program Manager -> Authorized Signer |
| Authentication | Email link or SMS code for signer verification |
| Reminders | Automatic reminders at 3 and 7 days for pending approvals |
| Attachments | Allow invoices, supporting receipts, and W-9 upload |
Store final signed PDFs with embedded audit trails and keep copies in both the eSignature system and your records repository for redundancy.
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day free trial | Varies by vendor | Varies by vendor | Varies by vendor | Varies by vendor |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
Submit invoices within contract period for timely payment
Typical net-30 or net-45 from invoice receipt
Obtain before first payment to contractors
Jan 31 recipient and IRS deadline for nonemployee compensation
Allow processing time for ACH transfers (3–5 business days)
A Program Director or department head typically has delegated authority to sign pay agreements for routine instructional services; larger commitments should pass through procurement or legal review.
An independent instructor signs as the payee and must certify tax status and provide required tax forms such as a W-9 for U.S. payers.
A university hires an adjunct for a semester course, pays per credit hour
A corporate trainer runs a half-day workshop for multiple cohorts, paid per session
| Criteria | Instructor Pay Agreement | Employment Offer |
|---|---|---|
| Use case | contract pay | ongoing salary |
| Tax reporting | 1099 reporting | w-2 reporting |
| Withholding | no automatic withholding | employer withholds taxes |
| Termination notice | contract-specified | subject to employment law |