Policy Updates for Accounts Payable and Nonresident Aliens - May 2022
Updates include refreshed payment policy formats, enhanced nonresident alien requirements, clarified payment procedures, and the use of SIR for NRA payments. It emphasizes the importance of tax compliance and documentation for all payment recipients.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Accounts Payable Updates RARA Meeting May 2022
Policy Updates Research Subject Payments Policy Refreshed for more current format/layout Procedures separated into a procedure document and will be posted separately to the Accounts Payable website alongside the Policy document Added Definitions (Expense Reimbursement and TIN/SSN) and Clarified (APP preferred for Payment) Special Situations Nonresident alien requirements have been enhanced and more detail provided for specific situations separate slides Changed Anonymous participation threshold to be consistent with up to threshold amount being $*.00 From less than $75.00. To up to $75.00.
Policy Updates Research Subject Payments Policy Responsibilities Added For payments to nonresident aliens different responsibilities when the payee is an NRA separate slides Payment Types Added Advarra Participant Payment as the preferred method Recommending Gift Cards only be used for anonymous payments Removed all references to Form F-4 so that we can eliminate use of the paper form now that other better options are now available. Supplier Invoice Request is the replacement to paper Form F-4.
Policy Updates Nonresident alien update Requesting payment and payment methods o Once a payee is determined to be a nonresident alien or they do not provide a valid Form W-9 when requested, regardless of what other payment type may have been used, all subsequent payments must be made via SIR. o Because of additional information and documentation reporting requirements for payments to nonresident aliens and required monthly remittance of tax withholdings to the IRS, it is strongly recommended that no other payment methods are used for payment to an NRA.
Policy Reminders Nonresident aliens Citizenship/Residency question: The IRS requires that we know, and inquire, if necessary, the tax citizenship/residency status of all payment recipients except for the purchase of goods. This can be accomplished by asking the payee to complete IRS Form W9. If the payee declines or completes it without a valid tax identification number, then it is appropriate to proceed as if NRA reporting is required. Failure by the department to obtain this information prior to submitting a payment request will result in payment delays.
Policy Reminders Nonresident aliens 30% tax withholding is almost always required Travel reimbursements to NRA employees, including potential employees, are not subject to tax or reporting if receipts and/or proper documentation of the travel expenses are provided to Accounts Payable. Work performed outside the United States: If the NRA is performing services outside the U.S., tax withholding and reporting are not normally required. The department should include documentation and/or a statement indicating that the individual performed the services outside the U.S. Study participation is not classified as services performed. Study participation is classified as Other Income and always subject to 30% tax withholding. The Supplier Request, if needed, and SIR Questionnaire must be completed properly for indicating the payee is an NRA
Who to Contact? It can be confusing to know whether you should reach out to the P2P Service Center, Accounts Payable, University IT, or ISD when you have questions. To assist with this issue we have created a P2P Contact Information sheet. It can be found on the UR Procurement Website under Resources and Contact. https://www.rochester.edu/adminfinance/urprocurement/resources-support-training/contact/ Each department is responsible for different areas. This guide was developed to try to reduce the number of times people get directed to a different team.
Accounts Payable Recommendations Timely approval of SIRs and resolution of Match Exceptions is important to ensure Invoices can be paid by their due date and to avoid credit holds and to keep up good relations with our Suppliers a. Check your Workday Inbox at least weekly (daily is best) to resolve all actions awaiting you For submitting invoices to Accounts Payable via email 1 invoice per PDF is always best Include in email Subject line PO #, or at least PUR or U or UK to help us streamline routing Don t forget available resources: P2P Self-Help Guides: https://www.rochester.edu/adminfinance/urprocurement/p2p-resources/ P2P Monthly Super User Meetings are another useful resource: https://www.rochester.edu/adminfinance/urprocurement/p2p-monthly-user-meetings/
Fiscal Year End Deadlines for posting to June ledger: Supplier Invoice Requests: June 24th F3/F34 Expense Reports: June 28th Remember, payment is not necessary by 6/30 for posting to June ledger. Payment is a completely separate transaction from an invoice being approved and posting to your ledger For posting an invoice to June, the invoice needs to be fully approved in Workday by the 3rd business day of July (7/6). This is the same timing every month: 3rd business day
