Guidelines for Using the Services Voucher*

*formerly known as the Payroll Voucher

Tippie College Admin Support Committee

Tuesday, November 11, 2008Presenters: Katie Villhauer, Payroll

Marianne Stratton, Payroll

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.

Services Voucherhttp://www.uiowa.edu/hr/payroll/contractors/

index.html

Use a Services 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:

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

Independent Contractor?

see IRS Publication 1779 at www.irs.gov Behavioral controlFinancial controlRelationship 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

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 seriesServices 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

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 Policyhttp://www.uiowa.edu/~purchase/purchase/P_vendors/conflict_of_interest.htm

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.

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

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

Resources

HR/Data Access/Reportsto check for employment statushttps://hris.uiowa.edu/portal/menu.php?tab=

AP-PO PeopleSoftto check payment status

www.irs.govpublication 1779

HR Unit Rep

Payroll OfficeMarianne Stratton 335-2420

Katie Villhauer 335-2380

Resources HR Data Access Reports

Resources AP-PO PeopleSoft

Resources www.irs.gov

Questions?

Thank you for attending!