Accounts Payable

The information may be found on the Immigration Services website, and the visa types are also listed in the University of Kentucky Business Procedure E-7-7 attachment A (PDF).

Most foreign scholars and researchers enter the U.S. with a J-1 visa, which allows them to teach or conduct research while on campus. Most other visa types limit the nature and locations of work that can be performed by the visitor. As general rule, visa types F, H, J, M, or Q will be eligible for payment for services (visiting speaker fees or independent contractor services), an honorarium and expense reimbursement but visa type B only allows for payment of an honorarium and reimbursement of expenses. Other limitations also exist for visa type B, such as the person cannot have been paid by more than five (5) other institutions within the previous six (6) month period.

If an NRA's visa permits them to receive payment of fees and/or expenses, departments may extend an offer to do so. Departments are encouraged to consider preparing a written "letter of invitation" documenting the conditions and terms of the invitation.

If an NRA's visa or other circumstances do not permit payment, departments should not make a promise or a commitment to pay any fees or expenses.

Yes, all payments to NRA's are subject to federal withholdings of 30 percent and state withholdings of 6 percent. However, an NRA may be eligible for exemption or reduced withholdings under a tax treaty between the United States and their country of residence.

Information on existing tax treaties between the United States and foreign countries may be found on the Internal Revenue Service (IRS) website.

The NRA must complete IRS Form 8233 (PDF) and it must be attached to the request for payment. Please see Instructions for completing the form. Note: This form requires that the NRA provide a valid SSN or Individual Tax Identification Number (ITIN).

An SSN or ITIN is not a requirement for making a payment to an NRA. However, if the NRA does not have an SSN or ITIN they are ineligible for any potential benefits of a tax treaty between the United States and their country of residence. Also, any payment made to them will be subject to withholdings for both federal and state taxes of 30 percent and 6 percent respectively. Additional information regarding tax withholdings for an NRA can be found on the Internal Revenue Service web site (PDF).

The application for a Social Security Number can be found at the web site of the Social Security Administration.

If an NRA does not qualify for a Social Security Number, they may apply for an Individual Tax Identification Number. The application for an Individual Tax Identification Number can be found at the U.S. Immigration Support web site.

The IRS requires that the University submit the IRS Form 8233 to them for approval, and they impose a mandatory delay of ten (10) business days before the payment may be made.

Non-employee payments are made by Departmental Authorization Voucher (DAV) through the Accounts Payable Department. Detailed procedures for completing the DAV are in Business Procedure E-7-7 (PDF).

Documentation requirements vary with the type of payment that may be made to an NRA. Listed below by payment type is the documentation that must accompany the DAV for each payment when it is submitted to Accounts Payable.

The President or the Provost must approve the request of all awards that exceed $50 in value. Award values are limited by funding source and the level of approval must be consistent with the award guidelines stated below.

The request for approval should provide the following information for each award:

• A description of the program.
• The reason/purpose for the award.
• The criteria for selecting the recipient.
• The type of award (plaque, gift, cash, etc.).
• The dollar amount/award limits or value of the award.
• The source of funds.
• The level of approval required.

Each approving official must furnish a report of the approved awards to the Office of the Treasurer. The Office of the Treasurer will maintain an updated file of approved awards for auditing purposes.

Category I

• Fund source: Unrestricted General Funds.
• Award limits: Total cost/value of an award may not exceed $50.00, unless pre-approved by the President or the Provost.
• Level of approval: Dean

Category II

• Fund source: Unrestricted General Funds -- Self Supporting (i.e., vending income, bookstore income, other sources of auxiliary income).
• Award limits: Awards are limited to a $50.00 value, unless they are part of a program that has been specifically approved by the President or the Provost. Total cost/value of the award may not exceed $500.00.
• Level of approval: Dean

Category III

• Fund source: Restricted Gifts. (The donor must specifically state that the gift may be used for student awards, or the gift may be used at the discretion of the College.)
• Award limits: Awards are limited to a $50.00 value, unless they are part of a program that has been specifically approved by the President or the Provost. Total cost/value of the award may not exceed the limits set by the donor. In the absence of donor restrictions, the total cost/value may not exceed $1,000.00.
• Level of approval: Awards of $500.00 or less, Dean. Awards greater than $500.00, Provost.

For awards other than those credited to a student's account, a Departmental Authorization and Voucher (DAV) containing the following information should be completed and approved at the appropriate level.

The "Name" of the award and the "Award Reference Code" (See Approved Student Awards (PDF) for a listing of approved awards and codes.)

Selection criteria for award recipients must be clearly stated in its entirety as part of the documentation supporting the Departmental Authorization Voucher (DAV).

All cash awards paid by Departmental Authorization and Voucher (DAV) must be accompanied by a "Request for Taxpayer Identification Number and Certification" (W-9 or W-8) for each recipient.

All transaction documents paying for gifts or mementos must have original invoices/receipts attached.

The Office of the Treasurer must review all cash/payment transaction documents for student awards. The final audit and review of the documents is performed by the Accounts Payable Department to ensure:

• The award program has been approved by the President.
• The propriety of the transaction.
• The funding source is appropriate.
• The dollar amount/value of the award is appropriate.
• The transaction is properly approved.
• The proper documentation is provided.

The President, Provost, Executive Vice President for Health Affairs or the Vice President for Finance and Administration must approve all awards that exceed $50 in value. Award values are limited by funding source and the level of approval must be consistent with the award guidelines stated below.

The request for approval should provide the following information for each award:

• A description of the program.
• The reason/purpose for the award.
• The criteria for selecting the recipient.
• The type of award (plaque, gift, cash, etc.).
• The dollar amount/award limits or value of the award.
• The source of funds.
• The level of approval required.

Each approving official must furnish a report of the approved awards to the Office of the Treasurer. The Office of the Treasurer will maintain an updated file of approved awards for auditing purposes.

Category I

• Fund source: Unrestricted General Funds.
• Award limits: Total cost/value of an award may not exceed $50 unless pre-approved by the President or a designated representative.
• Level of approval: Dean

Category II

• Fund source: Unrestricted General Funds -- Self Supporting (i.e., vending income, bookstore income, other sources of auxiliary income).
• Award limits: Awards are limited to a $50 value, unless they are part of a program that has been specifically approved by the President or a designated representative. Total cost/value of the award may not exceed $500.
• Level of approval: Dean

Category III

• Fund source: Restricted Gifts. (The donor must specifically state that the gift may be used for student awards, or the gift may be used at the discretion of the College or Division.)
• Award limits: Awards are limited to a $50 value, unless they are part of a program that has been specifically approved by the President or a designated representative. Total cost/value of the award may not exceed the limits set by the donor. In the absence of donor restrictions, the total cost/value may not exceed $1,000.
• Level of approval: Awards of $500.00 or less, Dean or Director. Awards greater than $500.00, Provost/Executive Vice President.

For awards other than cash (cash awards must be paid through Payroll), a Departmental Authorization and Voucher (DAV) containing the following information should be completed and approved at the appropriate level.

The "Name" of the award and the "Award Reference Code" (See the Approved Employee Awards list for a listing of approved awards and codes.)

Selection criteria for award recipients must be clearly stated in their entirety as part of the documentation supporting the Departmental Authorization Voucher (DAV).

All transaction documents paying for gifts or mementos must have original invoices/receipts attached.

The Office of the Treasurer must review all cash/payment transaction documents for employee awards. The final audit and review of the documents is performed by the Accounts Payable Department and/or the Payroll Department to ensure:

• The award program has been approved by the President.
• The propriety of the transaction.
• The funding source is appropriate.
• The dollar amount/value of the award is appropriate.
• The transaction is properly approved.
• The proper documentation is provided.

Contact Linda Marcum in the General Accounting department with the check number and date. For more information about stop payments and voided checks, see the General Accounting FAQ.

You will need to have access to SAP to search the following screens for payment information:

• Search for payment by vendor name:
  FBL1N (Vendor Line Item Display) - Search for vendor number information by name and review payments made to the vendor for any selected time frame.
  FK10N (Vendor Balance Display) - Search for vendor number by name and review payments made to the vendor by fiscal year.
• Search for payments by invoice number or DAV number:
  FB03 (Display Document) - Search for vendor payments using the invoice number or DAV number.
• Search for payment by cost object:
  KSB1 (Display Actual Cost Line Items for Cost Centers) - Search for vendor payments made against a cost center for any selected time frame.
  S_PLN_16000269 (Grants Management: Line Item Display) - Search for vendor payments made against a WBS element for any selected time frame.
  FMRP_RFFMEP1AX (Document Journal) - Search for vendor payments made against any cost object for any selected time frame.

Please send an email to the File Room and reference the SAP document number. Ask for a copy of the document to be faxed or emailed back to you. If the DAV was keyed incorrectly by Accounts Payable and the charge does not belong on your account contact Donna Whitaker.

See Agreement between Independent Contractor and Client (UK) (PDF)

Refer to the Business Procedures Manual, section E-7-1 through E-7-7, for instructions.

Nonresident Alien Payments - All payments to nonresident aliens except reimbursements for expenses must be reported to the Internal Revenue Service. The following items may be required for payments to Nonresident Aliens:

• Copy of Visa
• I-20 or IAP-66
• I-94
• W-8Ben form
• 8233 form (3 copies for service payments)

Any of the following payments to U.S. citizens or resident aliens will require tax reporting and appropriate documentation attached to the paying document:

• Rents paid to an individual - for equipment, pasture, and real estate rentals.
• Royalty payments - literary or other.
• Prizes or Awards - received in recognition of past accomplishments if the winners were required to enter a contest or if they are expected to perform future service and the payee does not transfer the money to a charitable organization or governmental unit.
  punitive damages paid in law suits.
  payments for deceased employee wages paid to estate or beneficiary.
  scholarships not used for tuition and books.
  any other income paid to an individual that is not reported under any other topic in this list.
• Medical or Health Care Service - including payments made to doctors, hospitals, ambulances, nurses, therapists or any other person that performs medical care services.
• Non-employee Compensation - fees, commissions, prizes and awards for services performed, reimbursements for expenses that did not include receipts, reimbursement of travel expenses without receipts, research subject payments, attorneys' and accountants' fees for professional services, referral payments, payments for parts and materials used to perform services, entertainers, visiting speakers, consultants, etc.
• Attorney Payments - fees paid for attorney services.

For more information concerning the above payments contact Cara Bischoff or Tony Day.

The Accounts Payable department reports all 1099-MISC information to the IRS by the end of each February for the previous calendar year. For more information on 1099-MISC reporting contact Cara Bischoff.

Although Accounts Payable retains the right of final audit and review of all documents processed, it is the ultimate responsibility of the department to provide the correct and necessary tax forms along with information detailing the reason and events that resulted in the payment.

If you are traveling on University business or you are responsible for compiling travel documents, read sections E-5-1, E-5-2, and E-5-3 of the Business Procedures Manual.

If you have specific questions about allowable expenses or compiling travel documents, contact one of the Accounts Payable personnel listed in the staff tab on this page.

Domestic per diem rates are available in section E-5-1 of the Business Procedures Manual. The breakdown for breakfast, lunch, and dinner is based on historical percentages used by the University - 23% breakfast; 26% lunch; and 51% dinner.

Please note that subsistence payment for a meal requires the claimant to be in travel status throughout the time frame established for that meal. Subsistence cannot be claimed for meals included in registration fees. Please see chart below for the appropriate time frames.

International per diem rates are available at U.S. Department of State on the World Wide Web. Select the appropriate country then click on the appropriate month and search for the city where the person was staying. The International per diem rates are updated each month.

Note - The breakdown percentage for breakfast, lunch, and dinner is the same as for domestic travel - 23% breakfast; 26% lunch, and 51% dinner.

Effective July 1, 2004, there no longer is a breakdown between high and low rate areas. A list of cities and the associated per diem rates can be located in section E-5-1 of the Business Procedures Manual.

Effective January 1, 2009, the mileage reimbursement rate is $.55 per mile.

Yes, as long as membership dues are not included in the cost.

Yes, if your card is approved for these travel expenses. University business travel related lodging expenses (limited to room and occupancy tax only) may now be charged to approved procurement cards. Auto rental, in lieu of other ordinary transportation, may be charged to the procurement card only with acceptable justification. Insurance to cover collision or comprehensive damage waiver-deductible on rental vehicles is neither an authorized nor reimbursable travel expense. Please be advised that gas is not an allowable expense on the procard.

If you need to have your procurement card approved for travel expenses or you are not sure if the card you wish to use has been approved, please send an email to the Procurement Card Administrator at procard@email.uky.edu.

No. Alcohol reimbursement must be requested via DAV. Please note – only discretionary funding can be used to reimburse for alcohol.

The monthly billing cycle begins on the 6th of each month or the next business day and runs to the 5th of the following month. Monthly credit limits are reset at the beginning of each billing cycle. If you need this limit increased either temporarily or permanently, the cardholder's supervisor can send an email to the Procurement Card Administrator at procard@email.uky.edu. Please include the cardholder name, the last seven digits of the card number, and the amount of the increase.

Yes; make sure to ask for your tax-exempt status. Purchases of textbooks for University class purposes are not allowed except for the teacher's use.

The University is exempt from Kentucky state sales tax. When sales tax is charged to your procurement card, you must contact the vendor directly to arrange for a credit. Many states have reciprocal agreements with the Commonwealth of Kentucky. Please refer to the Purchasing Department's home page for more information.

Yes. Registration fees may be charged to the procurement card for official University business travel. Registration fees are limited to the actual registration fee only. Expenses for optional events, meals, and membership dues are personal expenses and shall not to be paid by the procurement card.

No. All transactions charging 9-accounts should be paid via DAV or Journal Entry.

Yes, as long as the transaction hasn't been posted. Once posted, you would need to do a journal entry to correct. If not posted, click on the transaction in question, make the correction to your edit, and mark it as "Save as Completed." Adjustments can be made as many times as necessary prior to posting.

Edits should be completed on a daily basis but no less frequently than on a weekly basis.

The Computing Center Help Desk can reset SAP passwords. The phone number to call is 257-1300.

On this screen, three search criteria are required: the company code (UK00), the fiscal year, and either the reference number or the document header text. The reference number is the transaction id for that particular charge. The document header text is the card's P number (a capital "P" + the last seven digits of the card). Hit the execute button to display your transactions. If you still receive this message, then no outstanding procard transactions exist for that card.

Yes. Using screen zfi_procard_detail in SAP, you would need to type in the P number and all check boxes for different types of report details. Once your list of transactions appears, click on the box to the left of the transaction ID that you are inquiring about. At the bottom of all of your transactions, four icons will be displayed for the types of report details. If you are looking for airfare information, click on the airplane icon. If you are looking for FedEx tracking numbers, click on the Question mark icon. If additional information is required, send an email to the Procurement Card Admistrator at procard@email.uky.edu for transaction inquiries.