Guidelines for Using the Services Voucher* *formerly known as the Payroll Voucher

1. Guidelines for Using the Services Voucher* *formerly known as the Payroll Voucher Tippie College Admin Support Committee Tuesday, November 11, 2008 Presenters: Katie Villhauer, Payroll Marianne Stratton, Payroll

2. Effective 7/7/2008… • Payroll Voucher replaced with the Services Voucher located in the Accounts Payable e-ProVoucher system. • Exceptions - following types of payment requests will continue to be processed using the Payroll Voucher e-form until programming is complete. http://www.uiowa.edu/hr/payroll/forms/index.html -Payments of $5000 and up -Payments to individuals who do not have or do not provide either an SSN or an ITIN.

3. Services Voucher http://www.uiowa.edu/hr/payroll/contractors/index.html

4. Use aServices Voucher • personally for a service provided, • who is using a Social Security number, • who is not employed by or associated with the University of Iowa, • who may be working under a consultant or contractual agreement, • who is an Independent Contractor. to pay someone:

5. An Independent Contractor : • does not provide services similar to what employees are doing on campus • is not employed by the University of Iowa • is not a recent employee of the University • is not a student of the University • is not a State of Iowa employee

6. Independent Contractor? • see IRS Publication 1779 at www.irs.gov Behavioral control Financial control Relationship of the parties • payments do not have State, Fed or FICA taxes held • important to classify correctly! 1099 reporting vs W-2 reporting • Recent changes in IRS approach to Independent Contractors • please contact Payroll Office anytime with questions

7. Completing the Services Voucher • name, address and SSN of the person providing service payments are made directly to the individual providing the service, not to a third party • complete citizenship information • specific information about the service provided • IACT in the 6000 series Services Voucher will default IACT based on payment type selected • payments of $5000: - Complete the Payroll Voucher - May require written Professional Services Agreement (PSA) please contact Purchasing Department for information

8. Which form? • If the person is an Independent Contractor, use the Services Voucher Exceptions - following types of payment requests will continue to be processed using the Payroll Voucher e-form until programming is complete. -Payments over $5000 -Payments to individuals who do not have or do not provide either an SSN or an ITIN. • Conflict of Interest Policy http://www.uiowa.edu/~purchase/purchase/P_vendors/conflict_of_interest.htm

9. Which form? • If the person is doing work similar to what employees are doing on campus, (ie: instructing, office work, etc.) they should be employed. Use an Appointment Form in the HR Transaction System. • If the person is a current or recent employee, use either a Special Compensation Form or an Appointment Form. • If the person works for another State of Iowa office, use the Non-Services Voucher to pay the employing office directly.

10. Payments to non-US citizens or nonresident of US territories • if the payee is not a U.S. citizen or a resident of U.S. territories, federal tax will be withheld • requirements affecting nonresident aliens coming to the U.S. in order to participate in academic activities when an honorarium may be awarded can vary • please contact Pat Meskimen 335-2383, Xuefen Zhen 353-2460 , or Katie Villhauer 335-2380 with questions about these rules • payroll-nra-web@uiowa.edu

11. Office responsibilities • department creates the payment request, providing all necessary information • Payroll Office audits all Services Vouchers and Payroll Vouchers for potential employment situations • if necessary, Office of the General Counsel for review • Accounts Payable creates check or processes direct deposit and issues 1099-MISC income form at year end for payments over $600

12. Resources • HR/Data Access/Reports to check for employment status https://hris.uiowa.edu/portal/menu.php?tab= • AP-PO PeopleSoft to check payment status • www.irs.gov publication 1779 • HR Unit Rep • Payroll Office Marianne Stratton 335-2420 Katie Villhauer 335-2380

13. Resources • HR Data Access Reports

14. Resources • AP-PO PeopleSoft

15. Resources • www.irs.gov

16. Questions? Thank you for attending!