Accounts Payable Navigating the System Agenda Introduction Non-Resident Alien Info-Susan Caldwell Object Coding Purchase Order Payments Electronic Check Request Check Request Payments Travel Question & Answer Time! Introduction Federal Internal Revenue Service
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Accounts Payable Navigating the System
Agenda • Introduction • Non-Resident Alien Info-Susan Caldwell • Object Coding • Purchase Order Payments • Electronic Check Request • Check Request Payments • Travel • Question & Answer Time!
Federal Internal Revenue Service US Treasury Department (OFAC) Sarbanes-Oxley (internal controls) State Board of Regents Department of Revenue (Unclaimed Property) State Accounting Office (travel) Regulating Factors
1099 reporting Routine Payments P-Card Payments IRS has identified MCC Codes that must be reported. Accountable Plan Employee/ Independent Contractor Honoraria Payments Stipends Internal Revenue Service
U.S. Treasury Department Office of Financial Asset Compliance Specially Designated Nationals List http://www.treas.gov/offices/enforcement/ofac/programs Sarbanes-Oxley Requires certification and attestation of a public company’s internal controls. Federal Factors cont.
State of Georgia Regulating • State Board of Regents • Delegates Procurement function • Procurement Dept. approves check requests as well as purchase orders. • State Accounting Office • Travel Regulations • Department of Revenue • Escheatment of Unclaimed Property
Payments to Foreign Nationals Susan Caldwell International Tax Coordinator firstname.lastname@example.org 706-583-8193 fax 706-542-6779
Agenda • Visitor Payments (ie lecture, symposium) B1/WB • Honoraria • Reimbursement of Expenses • Other visa types • Reimbursement of Expenses • J1 Scholar payments • Fellowships • Expenses • Honoraria
Honoraria Payment for services • B1/B2, WB/WT and J1 are the only visas permitted to receive Honoraria payment (exception EAD card) • B1/B2 and WB/WT - 9/5/6 rule • Payment subject to 30% withholding • Determine the following: • Does the visitor have a US SS# or ITIN? • If yes – is the visitor from a treaty country? http://www.windstar.com/public/treaties.html
9/5/6 Rule The American Competitiveness Workforce Act ‘98 • Applies to B1/B2 and WB/WT visa holders • “Usual Academic Activity” • Payment for services will not exceed 9 days at UGA • Visitor has not accepted payment from more than 5 institutions or organizations in the previous 6 months
Visitor does not have US SS#/ITIN ornot from a treaty country • Documentation for Honoraria Payment: • Copies of passport, I94 card, visa • Substitute Honoraria Form http://www.busfin.uga.edu/forms/honorarium_nra.pdf • 30% Federal Tax Withholding Tax Year End - Payment and Tax withholding will be reported on Form 1042S and sent to IRS and visitor for tax reporting
Visitor has a SS# or ITIN and from a treaty country • Procedure for treaty eligibility that would allow exemption from the required 30% federal tax withholding – PRIOR to departure: • Visitor must complete the UGA Tax Information Form for Internationals http://www.busfin.uga.edu/forms/international_tax.pdf • The completed form along with copies of visitor’s passport, I-94 card and visa must be submitted to Susan Caldwell
Visitor has a SS# or ITN and from a treaty country • Treaty eligibility will be determined and Form 8233 will be provided for the visitor to review and sign • Form 8233 is sent to IRS and UGA is required to wait 10 business days before processing check request This process may be completed in person or via fax
Visitor has a SS# or ITIN and from a treaty country • Documentation for check request: • Copies of passport, I94 card and/or visa • Substitute W8 Honoraria Form • http://www.busfin.uga.edu/forms/honorarium_nra.pdf • UGA Tax Information Form • Form 8233 (provided by Susan Caldwell)
Reimbursement of Expenses • Original Receipts • Incurred during academic activity • No ITIN or SS# required • B1 and WB – no restrictions • B2 and WT – 9/5/6 rule applies • Visa fee not allowed – considered personal expense • Meals – itemized and not to exceed UGA’s policy of $28 per day
Documentation for Reimbursement of Expenses Payment • Copies of passport, I-94 card and visa • Original Receipts • Reimbursable Expense Statement for Non resident aliens: http://www.busfin.uga.edu/forms/reimbursement_nra.pdf
Reimbursement of Expenses for other visa types • H1B not sponsored by UGA – reimbursement of expenses for an activity that is in the same field of employment • Job Interview • Reimbursed expenses for job interview are not considered income • F1/J1 student – reimbursement of expenses may be taxable if the activity is to benefit the student • i.e. – pay expenses for student to attend conference – taxable if the conference is to fulfill student’s academic responsibilities • Business Purpose – benefits UGA then expenses fall under UGA’s accountable plan and is not taxable nor reportable
Visitors from Canada • Passport not required • Present purpose of visit • Ask for I-94 card • Documentation for payment – some type of Canadian identification • Canadian Social Insurance Number is NOT a US Social Security Number
Non Employee Payments to J1 scholar • Fellowship/Stipend: support given to scholar for study, training or research which does not constitute compensation for personal services • No service is required to receive fellowship payment – there is no UGA benefit – if there is service, then payment is employment wages • Payment is subject to 14% Federal Withholding unless specified by a treaty (must have US SS# or ITIN and from a treaty country) List of treaty countries: http://www.windstar-tech.com/public/treaties.html
Fellowship/Stipend Payment J1 • UGA Tax Information Form for Internationals • Copies of passport, I94 card, visa, DS2019 • Form W8BEN (provided by Susan) • USAID exception (per diems paid under USAID grants are exempt from federal tax withholding) • Personal Exemption – may be able to reduce taxable amount by the current personal exemption
Reimbursement of Expenses J1 • Providing a service – expenses fall under UGA’s accountable plan and are not taxable • Documentation required: • Copies of passport, visa, I94 card, DS2019 • Original receipts • Reimbursable expense statement for non residents • http://www.busfin.uga.edu/forms/reimbursement_nra.pdf • Not providing a service – treat as fellowship
Honoraria to J1 • Payment for services • Determine employee vs. independent contractor (questionnaire) • Time is not a factor • Documentation required • Copies of passport, visa, I94 card, DS2019 • Substitute Honoraria Form • http://www.busfin.uga.edu/forms/honorarium_nra.pdf
Visitor Payments to J1 Scholar not Sponsored by UGA • Authorization Letter • A letter from Sponsor’s RO/DSO (OIE) allowing scholar to come to UGA for business purpose and receive payment for expenses and/or honoraria • Reimburse Expenses • If the visitor has a business purposes (i.e. lecture), then UGA will allow payment under the accountable plan • Check request documentation: • Copies of passport, visa, I94, DS2019 • Reimbursable Expense Form • http://www.busfin.uga.edu/forms/reimbursement_nra.pdf • Actual Receipts • Authorization Letter from Sponsor (DSO/RO)
Visitor Payments to J1 Scholar not Sponsored by UGA • Honoraria Payment (payment for services) • Payment will have 30% Federal Tax withheld (tax treaty not available due to time limitations and/or fixed base in US) • Check request documentation: • Copies of passport, I94 card, visa, DS2019 • Authorization letter from Sponsor (DS0/RO) • Honoraria Form • http://www.busfin.uga.edu/forms/honorarium_nra.pdf
What are object codes? • Object Code: A five digit code that identifies either balance sheet accounts, revenue sources, or expenditure classifications • Used for reporting to the Board of Regents • Continuous Audit
Identifications • 1xxxx-Asset • 2xxxx-Liability • 3xxxx-Fund Balance • 4xxxx-Revenue • 5xxxx-Personal Services • 6xxxx-Travel • 7xxxx-Operating Expenses • 8xxxx-Equipment Purchases/Expenses • 9xxxx-Other
Travel Object Codes • 64100-Employee Domestic Travel • 64200-Employee Foreign Travel • 64107-Nonresident Alien Domestic Travel • 64207-Nonresident Alien Foreign Travel • 75210-Non-employee Reimbursable Expenses
Supplies & Expense-71400 • Cleaning materials • Kits • Lab supplies • Uniforms • Food (if the account allows for food to be purchased) • OFFICE SUPPLIES-71410 (paper/pens/staplers/ink cartridges/toner)
Other Codes… • 71500-Repairs & Maintenance (janitorial/sanitation/pest control) • 71720-Electricity • 71750-Water • 72712-Conference & Workshop • 72732-Freight (UPS & Fedex) • 72725-Registration • 74200-Printing/Publications
Other Codes Cont. • 74300-Equipment with acquisition costs of $100.00-$2999.99 (ex. Chairs) • 74306-Computer & Computer Peripherals with costs of $100.00-$499.99 • 74308-Equipment items with costs of $3000.00-$4999.99 • 74318-Electronic audio/visual/photographic • 74328-Computer & Computer Peripherals costing $500.00-$4999.99
Other Codes Cont. • 76910-Internet Charges • 76932-Cell Phone Charges • 84320-New or replacement equipment other than motor vehicles used on public roads or books with costs of $5000.00 or more
75111-Architect 75112-Attorney 75113-Consultant 75114-Engineer 75115-Physician 75116-Interpreters 75117-Vet 75118-Speakers 75119-IT Consultant 75110-Other Per Diems 75170-Other Per Diems NRA 75210-Reimbursable Expense 75220-Expense 75227-Direct Expense NRA Per Diem Codes
Where can I find a list of Object Codes? • The complete UGA Object Code list can be found on the Accounting website or at www.busfin.uga.edu/accounting/objectcodes.pdf • Include complete description on CR or PR so object code can be verified by T&E • Use noun on description in electronic PR
3 Way Match • UGA requires a three way match process to facilitate PO payments. • Purchase Order, Invoice, Receiving Report • No receiving report on file=Eprove
What is eProve? • eProve is used to forward invoices from Accounts Payable to departments for review. • It is primarily used to request payment approval against purchase orders. • It is also used to request information about invoices without a PO.
How do I get set up to use eProve? • Contact Brian Ellis at email@example.com or (706) 542-2786. • You will need to provide your name, email address, and the person you are replacing, if applicable. • Register your preferred email address with the UGA MyID system by going to www.arches.uga.edu/myid. Click on the link “Faculty/Staff Email Address Registration.”
How do I access eProve? • Login to the eProve system at https://imageweb2.busfin.uga.edu. • You must use Internet Explorer to access eProve. • Log in using your UGA MyID. If you email address is firstname.lastname@example.org, your MyID is jdoe and has the same password as this account. • If you do not know your MyID or password, you can access your account at www.arches.uga.edu/myid.
What should I do after I log in to eProve? • You will be able to view a list of invoices sent to you in the eProve system. • You can view an image of each invoice including notes from Accounts Payable about the approval or information needed. • Images can be manipulated for easier viewing. In addition, they can also be printed. • Reject any invoices that require research for an extended period of time and request that they be sent again at a later date.
Where can I go for more help about using the eProve system? • The Accounts Payable website located at www.busfin.uga.edu/accounts_payable includes detailed instructions and troubleshooting tips. • Contact Jennifer Oates in Accounts Payable via email at email@example.com. • Contact Accounts Payable via telephone at (706) 542-2786.
Consulting Agreements over $5,000 Rendering of Advice Only
Setting up Consulting Agreements under a purchase order • You must submit a purchase request for consulting whenever the total paid over the life of the contract will exceed $5,000. • The purchase request should be submitted before any work is done. • A sole source justification form will need to accompany your purchase request. • Your purchase request should include separate line items for the amount to be paid for fees and reimbursable expenses.
Paying against Consulting Agreements set up on PO • Consultants should bill Accounts Payable directly. • If you receive the invoice directly from the consultant, forward the invoice to AP with a signed coversheet. • DO NOT submit a check request to accompany the invoice. • Invoices must list fees and expenses as separate line items.
Consulting Agreements at Year End • Estimate the amount needed until June 30. • Before May 1, contact Procurement to increase or decrease the order. • After May 1, email firstname.lastname@example.org directly for increases or decreases. • The deadline to email changes to Accounts Payable is June 25 at 5 p.m.
Purchase Order Frequently Asked Questions You’ve probably heard this before
What is Liability? • Liability accounts are used to hold funds encumbered in a previous fiscal year. Funding will remain available until the PO is paid or closed in some other way. When a PO is transferred to the liability account, a JV will appear on your status report for the full amount of the PO, and the order will no longer appear on your status report.
How can I get info about the current status of a purchase order? • You can see up-to-date information about the account number, current encumbered balance, total payments made to date, and total adjustments made to a purchase order using the EI function in the Financial Accounting System.
How can I get info about amounts paid against a purchase order? • A list of payments made against a PO can be viewed using either the TE function in the IMS system or the Purchase/Check request search page on the Accounts Payable website.