Contracted Personal Services
Including Consultants, Speakers, and Other Services
1
Contracted Personal Services
Presenters
Presented by:
Marcy Young
Introductions, Employee vs.
Tax Specialist, Office of
Ind Contractor issues, Foreign Payroll and Tax Compliance
vendors
Jackie Price or
Marketa Willis
Vendor Maintenance
Accounting Clerk II,
FI Master Data Center
Jacque Allbright
Purchase Requisitions &
Contracts
Director of Purchasing
Cindi Scheid
Payment Vouchers & Invoices
Asst. Director Accounting,
Accounts Payable
2
Outline
1.
Introduction – Marcy Young
2.
Contracted Personal Services and Independent Contractors - Marcy Young
3.
Case Study 1 – (MY)
4.
Vendor Maintenance – Jackie Price or Marketa Willis
5.
Case Study 2 – (MW or JP)
7.
Purchase Requisitions and Contracts – J Allbright
8.
Case Study 3 – (JA)
9.
BREAK (after an hour)–
10.
Payables – Paying Contractors and Other Types of Payments – Cindi Scheid
11.
Case Study 4 – (CS)
12.
Paying Foreign Visitors & Other Tax Issues – Marcy Young
13.
Case Study 5 (MY)
14.
Questions & Answers
15.
Evaluations
3
Introduction
Marcy Young
Tax Specialist
Office of Payroll and Tax Compliance
4
Welcome
 Introductions
 Communication
 Work as a team
 Changing & evolving environment
 Discovering and solving problems
 Feel free to ask
 Feel free to stop us to discuss or comment
5
Types of Contracted Personal Services
Academic Services -
Artists, entertainers, lecturers, speakers, and
other service providers.
Professional Services - Accountants, architects, surveyors,
medical providers, engineers, etc.
Consulting Services -
A consultant defined by the State of Texas:
studies or advises a State agency.
(Texas Government Code § 2254)
6
Employee vs. Independent Contractor
An independent contractor:
a)
Works independently and is not working under supervision of
university personnel.
b)
Is working on a task by task basis with a beginning and end
date.
c)
Operates their own business as a sole proprietor.
d)
Offers similar services to the public.
e)
Is professionally certified or has specific expertise for the
project.
(Not limited to these definitions)
7
Who of the following can be paid as a contractor?
1. Someone certified in a certain field and operating their own business as a
sole proprietor. -YES
2. A sole proprietor who has specific training and knowledge for the project. -
YES
3. An on-site worker who reports to the office and is under supervision of
university personnel. -NO
4. An off-site worker or researcher performing services under supervision of
university personnel or required to report back to university personnel. -NO
5. A teacher being paid with university funds. -NO
6. A graduate assistant. –NO
7. A student worker. -NO
8
Why is this important?
 Fair Labor Standards Act - U.S. Department of Labor.
 State Unemployment laws
 State Worker’s Compensation laws
 IRS “Common Law” regulations
Legal Issues:
 Workers Compensation
 Matching FICA taxes vs. Self-Employment Taxes

Worker has right to appeal self-employment taxes if they feel they
were incorrectly classified as an independent contractor
 Benefits
 IRS Initiative to share information with state enforcement agencies.
9
Review FS-06 form
 Let’s review the questions asked on the FS-06 form provided in
your packet.
 Link to FS-06 form on Tax Specialist webpage:
http://www.txstate.edu/payroll/taxspec/forms.html
 Questions or comments.
10
Case Study 1
The Department of Anthropology is having a seminar in
September 2012, and wants to invite two well known scientists from
outside the university to speak. You are the Administrative Assistant
assigned to the project. They want to pay each as independent
contractors as follows:
 Dr. Norm Hunter ($20,000) in two payments, the first payment due upon
signing the contract, the second payment paid within 30 days after the
seminar.
 Dr. Laurel Tinder ($10,000) one time payment, to be paid within 30 days
after the seminar.
11
Case Study 1 - Challenges
You have researched SAP and found that:
1.
Dr. Norm Hunter is a new vendor for Texas State. How do you set
up a new vendor?
2.
He wants to be paid $10,000 on signing contract, and $10,000 on
completion. How do you request an advance payment?
3.
Dr. Laurel Tinder is an existing vendor. She was entered into the
system 4 years ago, and has been paid every year for the same
conference. What if her address or banking information has
changed?
4.
Do you need a contract & purchase order?
5.
How do you submit the payment vouchers?
12
Case Study 1 - Answers
Dr. Hunter
(new vendor)
Dr. Tinder
Form FS-06
(Contractor
approval)
Contractor and Account Manager complete FS-06, and submit to
the Tax Specialist.
FS-01 (VMF)
Vendor completes FS-01, submits to FI Master Data Center.
FS-06 not needed
If previously approved as a vendor, and an FS-06 is on file.
FS-01 not needed
unless information has changed. Contact vendor (each year) to
confirm current address and banking information.
Form FS-04
(Contract)
Account Manager and contractor complete and sign contract.
(Existing vendor)
Both Vendors
Advance payment terms must be included in contract.
Advance payment terms for Dr. Hunter must also be approved by
Asst. Director Accounting, A/P.
Purchase Order
Administrative staff sends contract to all required parties for
signature, completes purchase requisition, and sends copy of
fully executed contract to Purchasing.
Vendor Invoice or
payment voucher
Administrative staff sends pay voucher for Dr. Hunter’s advance
payment with the contract if approved for advance payment.
Then sends pay vouchers for both vendors for final payments.
13
Vendor Maintenance:
Jackie Price, Acct Clerk II, FI Master Data Center
or
Marketa Willis, Acct Clerk II, FI Master Data Center
14
Is the vendor in our system and is information
current? Or is this a new vendor?
 Existing vendor:

The Account Manager and/or the Administrative Assistant should review
the existing vendor file in SAP, and confirm the information listed with the
vendor. If the vendor has moved, changed banks, or if the record is more
than 2 years old, the Vendor should complete a new Vendor Maintenance
form (FS-01).
 New vendor:

The Account Manager asks the vendor to complete a Form FS-01, Vendor
Maintenance form, and sends the link to the vendor.

http://www.txstate.edu/gao/fimd/forms.html
 Instructions for the vendor:

The vendor completes the form electronically, prints, signs, and sends it to
the FI Master Data Center via fax or mail. The Vendor Maintenance form
includes the W-9 information.
15
Vendor Information
 Due to the confidential nature of the vendor maintenance
form the departments should not receive or keep a copy of
the form.
 Allow time for information to be verified and entered into our
system.
 Contact FI Master Data Center for assistance. – (Jackie
Price, jp54, or Marketa Willis, mw34)
 http://www.txstate.edu/gao/fimd/forms
16
Are vendors required to provide social
security number? (Privacy Act of 1974)
 Yes - According to the Privacy Act of 1974 an individual is not
legally compelled to provide Social Security number -- unless
involved in a transaction in which the IRS requires notification.
If we pay a contractor, we need to have a taxpayer number on
file.
 We retain the taxpayer number in our files for identification
purposes, and because the IRS requires a W-9 of all vendors.
The Vendor Maintenance form is a substitute W-9 under IRS
guidelines. The form is only kept on file by the FI Master Data
Center and is secure information.
17
Case Study 2
The Department of History at Texas State is hosting a music concert, and you are
the Administrative Assistant.
They want to hire several local well-known musicians to perform at the concert.
They are catering dinner for performers and VIP staff, and
They want to give an award to a faculty member.
Payment Amounts:
Jimi
Jones, musician ($2,000)
Janis
Butler , musician ($2,000)
Elvis
Brown, musician ($2,000)
Johnny
Ella
B. Good BBQ, caterer: ($900)
Fitzgerald Hughes, Music professor at Texas State (Award $100)
18
Case Study 2 - Challenges:
1. You have researched SAP and found that:
a) Jimi Jones is a new vendor.
b) Janis Butler was setup as a vendor last year. Does she need to renew her
vendor form? Could her address and banking information have changed?
c) Elvis Brown was setup as a vendor 4 years ago. Does he need to renew his
vendor form? Could his address and banking information have changed?
d) The caterer Johnny B. Good BBQ is a new vendor.
e) Ella F. Hughes is a Music professor at Texas State.
2. The musicians all request to be paid on the night of performance ($2,000 each). Do
you need a contract? Do you need a purchase order?
3. Do you need a contract or purchase order for the caterer ($900)?
4. Which forms are needed for payment?
5. Since Ella F. Hughes is faculty at Texas State, can we pay her a separate check
through Accounts Payable for the $100 award?
19
Case Study 2 - Correct Answers:
Jimi Jones, musician
•
Employee vs. Independent Contractor Determination
(Form FS-06) and Vendor Maintenance Form.
JBG Barbeque, caterer
•
Vendor Maintenance Form – (Form FS-01) .
Janis Butler, musician
(record less than 2 yrs old)
•
Contact vendor to verify address and banking
information. New FS-01 not necessarily needed.
Elvis Brown, musician
(record 4 yrs old)
•
Vendor needs to renew vendor form (FS-01).
2 Contracts:
. Special
Payment
Request
Jimi Jones, Janis Butler,
and
Elvis Brown
•
•
Contract (Form FS-04) - needed for each vendor.
Approval for advance payment (day of performance)
from Asst. Director Accounting, A/P.
3 Purchase
Order
JBG Barbeque
•
Purchase requisition needed for food or catering.
4 Payment
. vouchers
Jimi Jones, Janis Butler,
and
Elvis Brown
•
Contracted Services Payment Voucher (Form FS-03) for
each of the 3 musicians .
JBG Barbeque
•
Invoice from the caterer (with PO#).
Dr. Ella F. Hughes
•
Submit an electronic PCR to pay the faculty award.
1 New vendors
.
Existing
vendors
5 PCR
.
20
Create a Contract and a Purchase Ordera
Contract and a Purchase Order
Jacque Allbright, Director of Purchasing
21
A Contract Is……
 An agreement between the university and an outside
vendor:

Describes the work to be performed.

Describes the expectations of both parties.

Has an amount to pay, terms of payment, and a “not to exceed”
amount.

Has a beginning and ending date.

A contract puts a verbal agreement into writing.
Review Contracted Services Agreement (FS-04)
http://www.txstate.edu/payroll/taxspec/forms.html
22
When is a Contract and Purchase Order Required?
A Contract & a Purchase Order Is Not Required when:
 Paying a one time payment of less than $5,000.
A Contract & a Purchase Order Is Required if:
 Paying $5,000 or more to a vendor. But also if making several
payments to a vendor, which will cumulatively amount to $5,000 or
more during the fiscal year.
A Contract Only is Required if:
 When paying less than $5,000, and special payment arrangements are
requested by the vendor, or travel is included. For instance, if
someone is paid a deposit in advance, or several payments are to be
made to the vendor, or travel is included, a written agreement
(contract) is required.
23
Information Regarding All Service Contracts or
Agreements

If a contractor submits to Texas State their own contract boilerplate,
or requires additional terms and conditions be added to Texas
State’s boilerplate, the contract must be reviewed by the
university’s legal counsel or the Texas State University System
Office Attorney prior to being signed by a Texas State authorized
contracting officer.
24
Purchase Order
 Create Purchase Order through the SAP Requisition system. You
must already have a vendor number, and a fully executed contract.
 The purchase order should match the “not to exceed” amount on
the contract. This amount can be estimated, and increased or
closed out.
 Contact the Purchasing Office if you need assistance.
 Jacque Allbright, ja14, Priscilla Hernandez, ph23, Velia Espinoza,
ve01
25
Information Regarding All Service Contracts or
Agreements
 If UPPS 05.02.02 “Texas State Purchasing Policy” requires
competitive solicitation to be done to select the best value
contractor prior to contract execution, a “good faith effort” is
required to include “historically underutilized businesses” or
“HUB’s” in the solicitation of bids, quotes, proposals or other
expressions of interest.
26
University Policy and Procedure Statements
03.04.07 “Interagency or Interlocal Cooperation Contracts or Agreements”.

Special process for contracts between state agencies or local governments.
03.04.04 “Processing, Approving and Executing Contracts, Purchases, and
Agreements”

Process for getting approval of most university contracts
03.04.02 “Contracting Authority”

All contracts must be signed by an authorized Texas State contracting
officer or authorized designate.
03.04.01 “Contracted Services and Consultants, Speakers and other
Services”

This policy covers contracted personal services.
27
Case Study 3
The College of Education at Texas State wants to pay 4 different persons for
a special project that will be completed in 3 months. Each month will have a
certain milestone completion date, and the contractors will be paid on that date
if they have completed the work. The first milestone date is 8/15, the second is
9/15 and the third is 10/15. You are the Administrative Assistant. How will you
process these payments?
 Bob Roberts, project manager - $2500 for each milestone completion.
 Assam Scribe, specialist - $3000 for each milestone completion.
 Anita House, writer - $5000 for the entire project, in three payments.
 Veri M. Portent, graduate assistant for the Education Department, will
be doing data entry at her current rate of $15 per hour data entry.
28
Case Study 3 - Challenges
1.
Bob Roberts, project manager, is a new vendor.

2.
Assam Scribe, specialist, is an existing vendor.

3.
He will be paid $3000 for each milestone’s successful completion, totaling
$9,000. Does he need a contract? A purchase order? When do you turn in the
invoice?
Anita House, writer, is an existing vendor.

4.
He will be paid $2500 for each milestone completion. Since there are 3
milestones, the total he will be paid if he successfully completes his work is
$7500. Does he need a contract? A purchase order? When do you turn in the
invoice?
She will be paid in three payments of $1,666.67, not to exceed $5,000. Does
she need a contract? A purchase order? When do you turn in the invoice?
Veri M. Portent, data entry is a graduate assistant

She is being currently paid through Payroll, and is working for the same
department. Can she be paid as an independent contractor?
29
Case Study 3 - Answers
Mr. Roberts
FS-06
Submit to the Tax Specialist, and wait for approval.
FS-01
Completed by vendor, submit to FIMDC
FS-06 not
needed
If previously approved as a vendor, and an FS-06 is on file.
(existing vendors)
FS-01 not
needed
unless information has changed. Contact each vendor to
confirm current address and banking information.
Mr. Roberts,
FS-04
(Contract)
Contract needed - with the milestones and requirements for
successful completion included with the contract, or as an
attached Addendum. Signed by both parties, submitted with
purchase requisition.
Purchase
Order
Purchase requisition and purchase order needed because the
total to be paid will be equal to or greater than $5,000.
Vendor
Invoice
Vendor invoice is needed for each payment request. Include
the PO# on the invoice and have account manager sign. Submit
to Accounts Payable. The invoice should be submitted after
completion of each milestone.
Payroll
She will submit her hours as usual, since she is a graduate
assistant in the same department.
(new vendor)
Mr. Scribe and
Ms. House
Mr. Scribe and
Ms. House
Ms. Portent
30
How to Process the Payment
Cindi Scheid
Assistant Director of Accounting
Accounts Payable
31
\
Accounts Payable webpage:
http://www.txstate.edu/gao/ap/
Accounts Payable forms page:
http://www.txstate.edu/gao/ap/forms.html
Travel office:
http://www.txstate.edu/gao/ap/travel/
32
Payment Voucher Review
The Accounts Payable office audits each payment voucher (FS-03) or invoice
prior to payment. If any information is incomplete or appears incorrect,
payment is withheld until information is corrected.
Review each voucher prior to submitting to assure that information is
complete and correct:
 Vendor Name & vendor number
 Description: Describe work that has been completed.
 Performance Dates- Payment cannot be paid until performance end date.
Exception – deposit required by contract.
 Vendor signature, unless vendor’s invoice is attached.
 Amount to pay
 Fund and cost center, or purchase order number
 Signature of Account Manager
33
Payment Voucher Review
 Contact Information: Provide the contact information for the Administrative
Assistant, or the person working on the documents. This is our contact for
questions.
 Advance Payment or Deposit Request: If the vendor requires advance
payment, a deposit, or a check to be presented on the night of
performance,

A contract is necessary, stating that advance payment is required.

Advance payments must be approved by Asst Dir of Accounting -Accounts
Payable, Cindi Scheid.

The name of the person who will pick up the check must be assigned by the
Account Manager, and included in Section VI on the back of the Payment
Voucher (FS-03).

Checks can be picked up at the Cashier’s office by the assigned person only.
Cashiers will only release it to the name assigned on the payment voucher.
34
Texas Prompt Payment Law
\
Texas Prompt Payment Law
 Interest must be paid for invoices older than 30 days – turn in
Payment Vouchers or vendor invoices promptly.
 To comply with the “Prompt Payment” state law, the 30-day period
begins on the later of:
 The date the service was complete.
 Earliest stamp date received by Texas State.
 Account Manager approval date.
35
Payment Voucher as a Substitute Invoice
 The Contracted Services Payment Voucher (Form FS-03) is considered a
substitute invoice. When the department wants to pay for services, but
the vendor being paid does not issue an invoice, form FS-03 is used.
 If there is a purchase order, the vendor’s invoice alone can be used.
Write the purchase order number on the invoice, and have it approved
by the Account Manager with signature.
 If the department attaches the vendor’s invoice to form FS-03 (when
there is no purchase order), all information on the invoice must match
the payment voucher.
36
Possible Reasons for Processing Delay

New vendor – must be set up in SAP system.

Vendor information is incorrect.

Vendor is on “State Hold”.

Vendor is or was an employee of TS < the past 12 months.

Signatures or information missing.

Purchase order or contract needed.

Approval of OSP is needed for grants.

Foreign vendor payment – will go to Tax Specialist for required
paperwork and tax withholding.

Future performance date .
37
Travel reimbursements to contractors –
Most independent contractors pay their own travel.
The university would prefer not to pay independent
contractors for travel separately. Departments should
verify that it is included in the contractor’s fee.
When it is unavoidable, travel expenses for a
contractor can be paid separately, but this must be
stated in the contract in Section II C with a “not to
exceed” amount.
If travel is paid or reimbursed separately, it must
follow the IRS “Accountable Plan” rules.
38
Travel reimbursements to contractors –
Under the “Accountable Plan”:
 Without Receipts: Travel expenses will be coded as part of the contractor’s fee if
travel receipts are not included with the payment voucher. This is the preferred
method for paying contractor travel as the travel payment is included with the
contract service price. This is a much simpler process for all.
 With Receipts: Travel will be coded as 725100, Independent Travel.

Requires the completion and approval of the paper travel expense
reimbursement form:
Located at: http://www.txstate.edu/gao/ap/travel/forms.html

Do not use form FS-03 for travel reimbursements.

Contractor must attach receipts equal to the requested reimbursement
amount. However, if per diem rate is used for meals, then no receipts are
required for meals.

Contractor & Account Manager must sign and date the reimbursement form.

Will require two checks, one for the fee, and another for the travel expenses.

Business Purpose: Travel reimbursement requests must state the university
business purposes and must benefit the university.
(As you can see, this process is more difficult when paying contractors.)
39
Case Study 4
Grant Participants
The College of Science has an NSF grant which provides for
award payments to all grant participants. This program is a direct
benefit to the university.

There are 25 grant participants who will be paid $150 each.
What is the best process to pay them?
40
Case Study 4 - Challenges
Grant Participants
Some of the grant participants are existing vendors.
Some of them are new vendors.
Two of the grant participants are employees of Texas State.
Which forms should be used?
 FS-06 - Employee vs. Independent Contractor form
 FS-01 - Vendor Maintenance form
 FS-04 - Contracted Services Agreement
 FS-03 – Contracted Services Payment voucher
 AP-2 – Grant Participant form
 PCR – Payments to employees of Texas State
41
Case Study 4 - Answers
Independent Contractor
Form (FS-06)
Not needed. Grant participants are not being paid as
independent contractors.
Vendor Maintenance Form
Needed for new vendors. Completed by participant, submit to FI
Master Data Center.
(FS-01)
Vendor Maintenance Form
(FS-01 or Direct Deposit
Authorization form)
Needed for existing vendors if information has changed. Contact
each participant to confirm current address and banking
information.
Contracted Services
Agreement (FS-04)
Not needed.
Contracted Services
Payment Voucher (FS-03)
Not needed. (use AP-2, Grant Participant Stipend form instead.)
Grant Participant Stipend
form (AP-2)
All participants can be listed on the same form with separate
vendor numbers and payment amounts.
The grant participant form must include backup that explains the
grant participant payment. Attach the pages from the grant
contract, circling the payment type and description.
PCR
Create a PCR to pay the two Texas State employees.
42
Nonresident Alien Tax Issues
Marcy Young
Tax Specialist, Office of Payroll and Tax Compliance
43
Paying Nonresident Aliens through Contracted
Services
Honorarium (for B1/B2 nonresident aliens)
The INS’ 9-5-6 honorarium rules:
 Can only perform services at the university for 9 days or less.
 Can only have received payment from 5 other institutions within
the prior 6 month period.
Travel: Nonresident aliens may be paid or reimbursed for travel if they
provide receipts.
J1 Scholars: Nonresident aliens with a J1 visa sponsored by another
institution may be paid if permission is granted in writing by the
sponsor’s Responsible Officer. (The Tax Specialist needs a
copy of the DS-2019 form for the contact information)
Nonresident Alien Staff or Faculty:
 Nonresident aliens who are hired as employees by Texas State
University mayonly be paid through payroll.
44
Forms for Nonresident Aliens:
One-time payments
to NRA visitors to
Texas State:
Foreign National Information
Form (FS-05)
NRA completes online, sends to T.S. via fax,
mail or email.
Setup Meeting with Tax
Specialist and NRA
When the NRA comes to campus, he/she
meets with Tax Specialist.
Vendor Maintenance Form
(FS-01)
Vendor completes form, prints and sends
directly to FI Master Data Center.
Contracted Services Payment
Voucher (FS-03) –
Account Manager and vendor complete form
and send to Tax Specialist.
J1 sponsored by
another university
need a copy of the foreign
scholar’s DS-2019 form
Send a copy of this form to the Tax Specialist
so that permission to pay the foreign
scholar can be requested from the
sponsor.
NRA Staff or Faculty
Employee Packet, meet with
Payroll NRA Specialist, PCR
NRA must have original I-9, W4, copy of DS2019.
Workshop: Payment Requirements for
International Employees and Independent
Contractors
This is a workshop sponsored by the Office of
Payroll and Tax Compliance. The dates are to be
announced.
http://www.txstate.edu/payroll/taxspec/forms.html
45
Tax Withholding and Tax Treaties
Call Tax Specialist when planning for a foreign visitor
 Tax Withholding - NRAs have tax withheld at 30% from honoraria paid,
unless there is a tax treaty. Travel expenses paid with receipts are not
taxable, therefore no tax is withheld.
 Tax Treaties – With a tax treaty, no tax need be withheld, however, the
Tax Specialist must apply for a taxpayer number (ITIN) and tax treaty
exemption. Get paperwork signed while visitor is on campus. This
process may take up to 30 days.
 Certification of Original Passport and Visa – The Tax Specialist must
see the original passport and visa or have a notarized copy on file, and
complete a certification form for the IRS.
 Vendor Maintenance form – The Tax Specialist reviews all new
vendors who are NRA or a foreign corporations.
46
Case Study 5
The School of Journalism and Mass Communication at Texas
State held their annual Spanish Documentary Film Festival,
Punta de Vista a month ago.
They want to award two nonresident aliens as the winners of
best documentary film.
How do they begin?
One time payment to each person:
 Juan Luis Montego, citizen of Bolivia, First Place ($1,000),
 Viviana Chaco, Second Place ($500)
47
Case Study 5 - Challenges
 Juan Luis Montego is a citizen of Bolivia and is a J-1
student studying at University of Texas in Austin. He
created the film in Bolivia. (First place, $1,000)
 Viviana Chaco is a citizen of Argentina, and she came to
Texas State to participate in the film festival on a B1 visitor
visa. (Second place, $500)
48
Case Study 5 - Answers
Foreign National
Information Form
Ask each nonresident alien to complete this
form before they come to Texas State, and
return it to the Tax Specialist. It can be
emailed, mailed or faxed.
Mr. Montego
only
DS-2019
Ask the J-1 scholar to send his DS-2019 form
to the Tax Specialist. This will allow the T.S.
to ask permission of the sponsor.
Mr. Montego
Setup meeting with Tax
Specialist
Arrange for a meeting with the nonresident
alien(s) and the Tax Specialist so that the T.S.
can copy the necessary documents.
Form FS-01
Needed for each, assuming each
nonresident alien is a new vendor.
Completed by vendor, submit to FIMDC
Form FS-03 (Contracted
Services Payment Voucher)
Needed. Complete this form for each
award. 30% withholding may be required.
Form FS-06
Not needed.
Form FS-04 (Contracted
Services Agreement)
Not needed.
Purchase Order
Not needed.
Mr. Montego
and Ms. Chaco
and Ms. Chaco:
Forms not
needed:
49
Summary
50
Forms
Located on FI Master Data Center webpage:
FS-01 - Vendor Maintenance form
FS-02 – Vendor Maintenance form for
staff & faculty. This is an
electronic form:
http://www.txstate.edu/gao/fimd/fs02.html
Located on Accounts Payable webpage:
AP-2 – Grant Stipend form
Located on the Travel Office webpage:
Travel Expense Reimbursement form –
This is a multi-part electronic form.
We didn’t provide a copy.
Located on Tax Specialist webpage:
FS-03 - Contracted Services Payment
Voucher
FS-04 - Contracted Services Agreement
 FS-04-A – Addendum to contract for
changes to dates or amount.
 FS-04-B – Addendum to contract for
Intellectual Property
FS-05 - Foreign National Information
Form
FS-06 - Independent Contractor
Determination
51
Where to Route Forms

Vendor Maintenance Form (FS-01 or FS-02) – Vendor completes
form online, prints and sends directly to FI Master Data Center.

Employee vs. Independent Contractor Form (FS-06)
 Foreign National Information Form (FS-05)
 Payment Vouchers (FS-03, or AP-2)
 Contracted Services Agreement (FS-04) and Addendums
Account Manager sends these forms to the Tax Specialist.

SAP Purchase Requisition – Account Manager creates a
requisition in the SAP Requisition system and sends fully executed
contract to Purchasing office.

Travel Expense Reimbursement form – Account Manager sends
this form to the Accounts Payable Travel office for all travel expense
reimbursements.
52
Review process
Tax Specialist
Employee vs. Independent Contractor approval.
Contracts less than $25,000 and related payment
vouchers for contracted services.
Payments to foreign persons.
Tax Specialist and Office of
Sponsored Programs
Payments for subcontractors under grant and grant
stipends.
Travel Office
Travel for employees, contractors or grant participants.
Accounts Payable
Payment Vouchers, prizes to students (cash not required
to be spent on education).
VP, Finance and Support
Services and Contract
Compliance
Contracted Services over $25,000
Consulting services under Texas definition
Purchasing
Purchase requisitions for services and products
Financial Aid
Educational Awards and Scholarships to Students.
Human Resources or Faculty
Records
Gifts or Awards to Employees
53
Other Tax Needs
 Contact Tax Specialist for:

University’s W-9

University’s Tax Exempt Status

Research on tax issues
 Hotel Tax Exemption – Available for University employees only. – See
Travel Website. http://www.txstate.edu/gao/ap/travel/
 Sales Tax Exemption – Available for University business related
purchases. – See Tax Specialist website.
54
Closing…
 Please complete the evaluation forms for
us.
 Thank you to all the presenters and
participants!
55
56