Abilene Christian University

1 Abilene Christian University Accounts Payable FY 2016 Campus Manual Table of Contents Contact Information 1. Check Run Schedule 1. Payment Methods 2. Employee vs. Independent Contractor Worksheet 2. Reportable Payments 3. Payments to Foreign Nationals 4. Purchase Orders 4. Request for Payment Form 5. Travel Travel & Entertainment Policy 5. Travel Advance Request 6. Travel & Entertainment Expense Report 6. Receipt of Per Diem Funds Form 6. Spousal & Family Expenses 7. Moving Expenses 7. Internship Payment Request 7. Student Entertainment Reimbursement Form 8.

2 Wire Transfer Request Form 8. Gifts, Awards, Prizes, & Receptions 8. Approval Signatures 9. Authorized Signers Form 10. Missing Receipt Statement 10. ACH Authorization Form 11. Tax Exemption Forms 11. Cash Orders 11. Useful Banner Forms 12. ACU Accounts Payable CONTACT INFORMATION. Staff: Sara Parker Accounts Payable Specialist Phone: Fax: Email: Website: Hours: Monday through Friday, 8:00 5:00 Mail: ACU Box 29110. Location: Hardin Administration Building, Room 208G. CHECK RUN SCHEDULE. Accounts Payable processes payments two days per week: Monday The payment request or invoice must be complete and in the Accounts Payable office by 5 on the previous Thursday.

3 Thursday The payment request or invoice must be complete and in the Accounts Payable office by 5 on the previous Tuesday. 1|Page PAYMENT METHODS. There are several payment options when making operational and travel purchases on behalf of ACU: The ACU purchasing card provides a faster, more cost-effective method for making purchases. Not only is it easier for departments to process, but vendors receive their payments faster. 1099 tax laws do not apply to p-card payments. If the payee is set up for direct deposit, this will be the automatic payment method for payments requested through Accounts Payable.

4 Direct deposit payments take approximately 1 to 3 business days from the processing day to become available in the recipient's bank account. Vendors may now enroll in ACU's virtual card program. Within this program, vendors are securely paid by way of a virtual credit card sent to their work e-mail. Vendors can accept the card payment electronically through their payment processing portal. Unless specified differently, all checks are mailed first class by Accounts Payable on the same day they are processed. If documents need to be mailed with the check, please indicate so on the payment request or invoice and provide a copy of the enclosures.

5 If you would like a check sent overnight, please request to pick up the check. On the applicable processing day, you will be called to pick up the check so you can overnight the payment through the appropriate mailing service. EMPLOYEE VS. INDEPENDENT CONTRACTOR WORKSHEET. The Employee vs. Independent Contractor worksheet is to be used by an ACU department to determine whether a worker is an employee and paid through Payroll or an independent contractor and paid through Accounts Payable. According to government regulations, a worker is an employee if the purchaser of that worker's service has the right to direct or control the worker, both as to the final results and as to the details of when, where, and how the work is done.

6 Control does not have to be exercised; rather, if the service recipient has the right to control, employment may be shown. This worksheet should be submitted in the following situations: If an individual is providing services to ACU and the department is unsure if the individual should be hired as an employee or as contract labor. If an individual is providing services that are similar to an existing employee's job function. If an employee is providing services that are not connected to his/her normal job duties. Once the worksheet is completed, it is submitted to Human Resources.

7 Once a decision has been made, you will be informed whether the worker will be classified as an employee or independent contractor. 2|Page REPORTABLE PAYMENTS. ACU is required by the IRS to report certain vendor payments on a 1099-MISC tax form. At the end of each calendar year, the 1099's are sent to the vendors and the IRS to report taxable income. 1099's are required when the vendor is reportable and when the payment is reportable. In order to process a 1099, ACU must receive a W-9 from the vendor. The W-9 may be printed or submitted electronically.

8 A W-9 reports the vendor's name, address, tax ID number, and classification type. If needed, it is the paying department's responsibility to provide the vendor's W-9 to Accounts Payable. A. W-9 only needs to be submitted once for each 1099 vendor. When in doubt, ask the payee for a W-9. Who is Reportable? Domestic corporations (Inc.) ! generally exempt unless the payment is for medical/healthcare or legal/attorney services Governmental units ! exempt Non-profit organizations ! exempt Limited Partnership (LP) ! reportable Limited liability companies (LLC): o If designated as a partnership !

9 Reportable o If designated as S-Corp or C-Corp ! generally exempt unless the payment is for medical/healthcare or legal/attorney services o If it is not designated either way on the W-9 ! reportable citizens ! reportable Foreign individuals or companies ! exempt; see the Payment to Foreign Nationals section DBA's (Doing Business As) ! depends on the owner's classification. DBA's are reportable under the owner's name. Therefore, look at the owner's classification type and follow the rules above. What is Reportable? Non-employee compensation ! examples include hourly pay, consulting, designing, construction, photography, services, membership fees, conference registration fees, customized products, etc.

10 Prizes / awards ! examples include door prizes, settlement awards, etc. Royalties ! examples include copyrights, trademarks, patents, software license fees, etc. Medical and healthcare payments examples include physicals, customized products such as dentures or eyeglasses, laboratory fees, clinic visits for workers compensation, etc.; corporation exemption does not apply to this category Rent ! examples include office spaces, real estate, machine rentals, equipment leases, car rentals, hotel lodging, and other operating leases Legal services !