Welcome
Personal
Payments
Training
2008
Agenda
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Personal Payments
New Personal
Payment Process
Signature Delegation
Form PC
Form RCS
Glacier Software
Non-Resident Alien
Payments
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Living Allowances
Scholarships &
Fellowships
Prizes & Awards
Receipt Guidelines
Independent
Contractor vs.
Employee
Contacts & Reference
Materials
Personal Payments
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Consulting, Honoraria, Fees, etc.
Form PC Required
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SSN
Home Address
Period Covered
Brief Explanation of Services
Fees and expense reimbursements must be on separate lines on
the Invoice Voucher for IRS reporting
Form 52A – request for electronic funds transfer
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Preferable payment method for payment going outside the US
Route Form 52A & all backup through Cheryl Byers, Taxes
Name & SSN must be on Form 52A
Personal Payments
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Additional Instructions for Non-Residents
Glacier Software has replaced the 2nd page of the
Form 1&2
Attach copies of supporting documentation
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Passport
Visa Page
I-94 Card
I-20(F1)
DS-2019(J1)
I797(H1B)
8233 Form (if applicable)
W-7 Form (if applicable)
Personal Payments
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Lives and Works Outside the US
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If a Non-Resident Alien lives and works
outside of the US, Purdue has no tax
withholding or reporting responsibilities.
Notate in the description box on the Invoice
Voucher that the individual lives and works
outside of the US.
Retain documentation in the business office
that supports the work was done outside of
the US.
Personal Payments
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One-Stop Shop for Personal Service
Payments
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Reduce processing time
Prevent duplication of effort
Document review will occur one time
All questions answered in one
department
Personal Payments-Flowchart
Signature Delegation
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Authority to sign for the procurement of
goods and services – except for payments
to individuals
Comptroller/SPS Review
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Allowability
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Conformity to restrictions imposed by state
regulations
Meet restrictions imposed by donor, external provider
and the University
Meet restrictions imposed by the federal government,
OMB Circulars A-21, A-110
Meet restrictions placed on specific grants or
contracts
Signature Delegation
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Comptroller/SPS Review (cont.)
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Allocable
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Authority to commit funds
Benefit the funding sources
Funds are available
Reasonable & Necessary
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Quantity and Price are considered
appropriate by a prudent person
Necessary to conduct the work of the office
or department
Signature Delegation
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Departmental Review
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Account number is valid
Funds are available
Correct object code & DREF (if applicable)
Visa issues for personal travel payments
checked
Appropriate documentation is attached
Academic approvals
Comptroller review – allocable, allowable,
reasonable, signature
Route to Tax Department
Signature Delegation
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Payments to Individuals
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Honorariums, Consulting Fees,
Reimbursements, etc
Reviewed by Business Office for
allowability, allocability & reasonableness
Sign under ‘Recommended’ (based on
limit)
If a Form PC is needed, review with
scrutiny, any questions contact the Tax
Department
Forward to the Tax Department
Form PC-Payee Certification
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Start using 07/05 version immediately
Replaces Form 1&2
Available on the Taxes Website
Non-Residents, who are receiving
compensation and are not current
employees, need to complete Glacier
The tax department will use this
information to accurately withhold and
report taxes
Form 21 (Revised 06/05)
Payee Certification
Use when making participant payments, paying non-Purdue student or non-staff awards,reimbursement of fees/expenses to speakers, honoraria,
artists/entertainers, or consultants. Attach to Invoice Voucher, Form 56. Go to www.purdue.edu/taxes for more information.
A. Payee Information
For Cale ndar Ye ar
(To be completed by Payee)
1. Name:
2. Home Address:
(Please enter name as shown on your Social Security Card)
3. Social Security Number:
4. Email Address:
5. Are you a student?
(Please Include 4-Digit Zip Code Extension)
No
Yes
If yes, Name of Institution
6. Are you an employee or former employee of Purdue University?
*If no, name of Employer
No *
Yes**
**If yes, dates of employment at Purdue
7. Do you have immediate relatives employed at Purdue?
If yes, please list name(s) and department(s).
No
Yes
8. Citizenship and Residency - Used to determine appropriate tax withholding and reporting
H1 B, F 2 , T N, a n d O1 v i sa h o l de r s a r e n o t e l i g i bl e fo r co mpe n sa t i o n fo r i n de pe n de n t pe r so n a l se r v i ce s.
Residency Status:
US Citizen
Permanent Resident
Permanent Resident (Green) Card #
Non-Resident Alien
Visa Type:
No n - R e si de n t Al i e n s, pl e a se co mpl e t e y o u r Gl a ci e r fi l e
S T OP! If this arrangement is l o n g-term c o n s u l ti n g (more than 20 calendar days or multiple payments), D O N O T CO M P L E T E Sec ti o n s B . , C. , a n d
D . at this time. Complete Form 22, Request for Approval for Consulting Services, obtain approvals & forward to the Tax Department, FREH, with a copy of this
Form 21.
B. Payment Information
(To be completed by department business office)
T o a u th o ri ze p a ymen t f o r s ervi c es ren d ered , c o mp l ete Sec ti o n s B , C, a n d D , and forward with Invoice Voucher (Form 56) and appropriate
documentation to the Tax Department, FREH.
Description of Services/Reason for Payment:
Was the work performed outside the United States?
No
Yes
Is this a progress payment?
Period Covered by Payment:
*If yes, is this a final payment?
Itemized Payment:
Honorarium/Fees for Service
Expens es
Airfare
Ground Transportation
Subsistence: Food
Lodging
Other
Account Number
Fee/rate per hour,day,etc. No. of hours,days,etc.
$
X
$
$
$
$
X
X
X
X
=
=
=
=
=
=
(Fund)
C. Payee Certification
(Dept)
(Project)
Total
(Dref)
No
Yes*
No
Yes
Foreign Curr.Type
$
$
$
$
$
$
$
T o t a l In v o i ce
Amo u n t
(To by signed by Payee EACH TIME a payment is requested)
Note: The Internal Revenue Service does not require your consent to any provision of this document other than the certification required to avoid backup withholding.
By Signing this invoice I a) Certify that this invoice is correct and just, the amount claimed is legally due, after allowing for all just credits, no part of the same has been
paid, no part will be paid by another entity, nor will any expenses claimed here be used as a deduction for tax purposes; b) Certify that I am not a Federal employee; c)
Agree that all inventions and materials first developed or produced as a result of the above described consulting activities will be reported to Purdue and all rights, both
domestic and foreign, to inventions and materials first developed or produced as a result of the above described consulting activities shall be retained by Purdue
University, and d) Agree not to disclose any information furnished by Purdue University that was identified as proprietary information.
Under penalities of perjury, I certify that: e) The number shown on this form is my correct taxpayer identification number, f) I am not subject to backup withholding, and
g) the information regarding citizenship in A.8. above is correct.
Signature of Payee:
Date:
D. Verification of receipt of deliverables and/or services by individual with first-hand knowledge
(Required for all payments except participant payments and award payments.)
By signing below, I certify that the services described in Section B. are essential to the project, that internal resources are not available to perform
the work, and the consultant's fees are appropriate. I also certify that the services have been received, including any report(s) due.
Signature:
Title/Position:
Date:
Form RCS-Consulting
Agreements
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Consultant Payments
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Duration of Service is greater than 20
days
Multiple payments paid to consultant
Complete and forward to the Tax
Department
Form RCS-Long Term Consulting Agreement
Form 22 (Revised 06/05)
Request for Approval for Consulting Services
Documentation and Prior Approval(s) Required to Pay Long-Term Consultants
Must be accompanied by a Form 21 with only Section A completed
A. Payee Information (Required)
Na me :
(Please enter name as shown on Form 21)
B. Documentation Required for Long Term Consulting Arrangement
Complete this section if consulting meets criteria for long-term consulting. Call the Tax Department for more information. Provide enough information to
clearly define the work and terms of the agreement. Documentation may be attached to this form in place of filling in the form itself.
Statement of Work:
Describe Consultant's Credentials, including why he/she meets project needs:
Describe required deliverables, if any:
Identify Any Special Conditions Related to the Consulting Arrangement:
Term of Project :
Expected Completion Date:
If project will be done in segments, please describe detailed schedule for each segment, including dates and deliverables:
Total Estimated Costs for Project
Fees for Service
Fee/rate per hour,day,etc.
No. of hours,days,etc.
Total Fees
$
X
=
$
Airfare
$
X
=
$
Ground
$
X
=
$
Food
$
X
=
$
Lodging
$
X
=
$
$
X
=
$
Expenses to be paid
Transportation
Subsistence
Other Expenses
-
Account Number
(Fund)
(Dept)
(Project)
(Dref)
Total Estimated
$
Cost
If progress payments will be made, please describe detailed payment schedule:
C. Request and Approval Signatures
R e qu e st e d by :
Signature:
Date:
Title/Position:
Appr o v e d by :
Date:
Head of Department/College (Required)
Appr o v e d by :
Date:
Dean/Director (Follow guidelines for individual College/Area)
Form PC & RCS
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Business Office Guidelines can be found
on the Taxes website as part of the
consultant payments tab
A Quick Reference Guide for Form PC &
RCS is also available on the Taxes website
as part of the consultant payments tab
http://www.purdue.edu/taxes/Consultant_
Payments/Welcome.html
GLACIER
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Glacier is a web based International
tax compliance system.
Instead of handing out tax forms to
international visitors, you will be
issuing them passwords.
GLACIER
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Business office procedure to receive access to
issue passwords; e-mail the Tax Department the
following information:
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Name
Title
Campus address
Campus phone and fax number
E-mail address
You will receive an e-mail with your password
and instructions on how to login. The e-mail will
come from support@online-tax.net and not
Purdue.
GLACIER
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When you issue a password, an e-mail is
sent to the visitor asking them to enter
their information into the Glacier system.
The e-mail will come from
support@online-tax.net and not Purdue.
Please advise them to look for this e-mail
and others in the future.
Advise them to keep the password and
instructions for future use of the Glacier
system.
GLACIER
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After the visitor enters their information, a Tax Summary
Report, and any other required IRS forms will be available
to print. Ex) 8233, W-8BEN, or W-7. The Tax Summary
Report will replace the NRA-100.
If the visitor does not have a social security number or an
ITIN, Glacier will put a hold on printing the forms for that
visitor. The Tax Department can override the hold and
print the forms when the employee is in our office. The
business office needs to contact the Tax Department to
override the hold which enable the visitor to print the
forms.
The Tax Department will process the ITIN application
upon receipt of the payment request.
GLACIER
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We will use Glacier to generate the
tax forms required for payments to
individuals receiving personal service
payments, scholarships, awards,
royalty payments, or reimbursement
of travel expenses via invoice
vouchers. The Tax Summary Report
printed from Glacier will replace the
NRA-100.
GLACIER
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Fellowship recipients will also be using this
system.
For the payments above, check the NonEmployee box for Pay Period type when
you are issuing a password.
If you have an incoming visitor having
difficulties printing, offer to print the forms
for them when they arrive in your office.
Non Resident Alien Visas
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Not all Visas are the same
Try to choose the
appropriate visa for an
individual before they
come to the US
There are different
restrictions for paying
compensation and for
reimbursing travel
expenses
Refer to the visa payment
reference sheets
Visa Types
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B-1 - Visitor
Business
B-2 - Visitor
Tourist
WB - Visa Waiver
Business
WT - Visa Waiver
Tourist
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F – Student
J – Exchange Visitor
H-1B – Specialty
Worker
TN – NAFTA
Professional (Canada
or Mexico)
EAD – Employment
Authorization Card
Additional Non-Resident Alien Instructions
There are IRS and USCIS regulations we must follow for Non-Resident Aliens. Purdue
University uses a web-based tax compliance system, called Glacier, to assist us in
complying with these regulations. Any time you receive some form of income from
Purdue, such as a payment for services, an award, or a fellowship, you will need to create
or update you record in Glacier.
Current employees or if you have been paid by Purdue this year:
 You should have an e-mail with your password and login instructions to the
Glacier system. You can request a copy of your password and login instructions
by sending an e-mail to taxes@purdue.edu.
 You will need to update the Glacier system with your current information and add
the type of payment you are receiving.
 Print the Tax Summary and any other forms as directed.
 Sign the forms and send them with copies of the documents listed on the Tax
Summary to your contact in the business office.
If you have not been paid by Purdue before:
 The business office will send you an e-mail giving you login instructions and your
password to create your record in the Glacier system.
 Print the Tax Summary and any other forms as directed.
 Sign the forms and send them with copies of the documents listed on the Tax
Summary to your contact in the business office.
Honorarium / Fee Payments to Non-Resident Short-Term Visitors
- Please attach a copy of the individual's passport, I-94 card and when applicable visa, EAD card, I-20,
DS-2019, or approval from sponsor
- Attach a copy of IRS Form 8233 if eligible for a treaty (exemption from taxes)
- Attach a copy of IRS Form W-7 if the individual does not have a social security number or ITIN
Can we pay an
Honorarium/Fee?
Stipulations and Exceptions
B-1
9 DAY LIMIT
Yes
* Must have 9-5-6 statement from Glacier signed
B-2
9 DAY LIMIT
Yes
* Must have 9-5-6 statement from Glacier signed
WB
9 DAY LIMIT
Yes
* Must have 9-5-6 statement from Glacier signed
WT
9 DAY LIMIT
Yes
* Must have 9-5-6 statement from Glacier signed
F-1
No
Human Subject payments to Purdue students are allowable
Allowable with approval from sponsor for Curricular Practical Training on the I-20
F-2
No
J-1 Student
No
Human Subject payments to Purdue students are allowable
J-1 Scholar/
Yes
Researcher/
Teacher
Need written authorization from sponsor or
If Purdue is sponsor for activity being compensated, DS-2019 is authorization
J-2
Yes
Must have Employment Authorization Card
H-1B
No
We may pay the sponsoring institution directly and they can pay the individual
O-1
No
We may pay the sponsoring institution directly and they can pay the individual
TN
No
We may pay the sponsoring institution directly and they can pay the individual
EAD Card
Yes
(Employment Authorization Card)
* 9-5-6 Statement
Visitors in business or tourist status (B1, B2, WB, WT) may be paid honoraria and/or reimbursed for travel expenses
if the visitor is engaged in the activity being compensated for any portion of 9 days or less and the visitor has
not been paid or reimbursed by more than 5 other US institutions or organizations during the past 6 months.
Reimbursement of Travel Expenses for a Non-Resident Short-Term Visitors Receiveing Honorarium/Fee Payments
- Please attach a copy of the individual's I-94 card and when applicable authorization from sponsor on F-1s and J-1s
Stipulations
B-1
- no honorarium
- with honorarium
Yes
Yes
Can reimburse for length of stay ** Must have B1 on I-94 card
Limited to 9 days and must sign 9-5-6 statement
Yes
* Must have 9-5-6 statement from Glacier signed
Yes
Yes
Can reimburse for length of stay ** Must have WB on I-94 card
Limited to 9 days and must sign 9-5-6 statement
WT
9 DAY LIMIT
Yes
* Must have 9-5-6 statement from Glacier signed
F-1
F-2
No
No
Allowable with approval from sponsor for Curricular Practical Training on the I-20
J-1 Student
No
J-1 Scholar/
Researcher/
Teacher
Yes
Need written authorization from sponsor or
If Purdue is sponsor for activity being compensated, DS-2019 is authorization
J-2
Yes
Must have Employment Authorization Card
H-1B
Yes
Occasional and incidental to alien's employment ** 7 day limit **
Greater than 7 days, need written authorization from sponsor or pay sponsor directly
O-1
TN
No
No
We may pay the sponsoring institution directly and they can pay the individual
We may pay the sponsoring institution directly and they can pay the individual
B-2
9 DAY LIMIT
WB
- no honorarium
- with honorarium
EAD Card
Yes
(Employment Authorization Card)
Travel expenses for business purposes are reimbursed under the accountable plan rules used by the travel department - receipts required
* 9-5-6 Statement
Visitors in business or tourist status (B1, B2, WB, WT) may be paid honoraria and/or reimbursed for travel expenses if the visitor is engaged
in the activity being compensated for any portion of 9 days or less and the visitor has not been paid or reimbursed by more than 5 other US
institutions or organizations during the past 6 months.
Note: We can reimburse travel only for F-1 & J-1 if they are not receiving honorarium/fee payments for services w/o sponsors approval.
This payment type is taxable to the individual and taxes will be withheld.
Noteworthy Restrictions
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B-1 / B-2 and WB / WT
Limited to 9 days of service at Purdue
and cannot have been paid or
reimbursed expenses at more than 5
institutions in the past 6 months (95-6 Statement)
Must sign 9-5-6 statement printed
from Glacier
Noteworthy Restrictions
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Exception: B-1 and WB can be reimbursed
expenses for greater than 9 days if they are
not receiving an honorarium. In this case
they do not have to sign the 9-5-6 statement.
Must have I-94 card with B-1 or WB indicated
The visitor must stop at the border or point
of entry and request the I-94 card be marked
B-1 or WB
If B-1 or WB is not marked on the I-94 card,
the 9 day limit applies
Noteworthy Restrictions
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H-1B, F-2, TN, and O-1 visas cannot be
paid honorarium/fee for services
H-1B, TN, and O-1 are employment visas
that are employer specific, job specific,
and site specific.
If Purdue is not the sponsor of the
individual, then approval from the sponsor
may be needed before the payment can
be made.
Paying an Institution Directly
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If you want to pay an H-1B, TN, or O-1 a fee
or reimburse expenses, you can pay their
sponsoring institution directly.
Ask the sponsor to send an invoice to Purdue
and pay it on a direct Invoice Voucher
through A/P.
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Contact SPS for guidance on their accounts.
The sponsor then passes along the fee to the
individual and they are responsible for tax
withholding and reporting.
I-94 card
F-1, D/S = Duration of Stay
(J-1 also D/S)
TN - Date specific
(H-1 also date
specific)
DS-2019
What is a Tax Treaty?
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Treaties between the US and other countries are
negotiated. They allow for certain types of
income to be exempt from tax.
There are many articles (categories) in a tax
treaty. Some of the common articles we use are
an exemption from tax for employee
compensation, scholarship and fellowship
payments, independent contractor payments,
prizes and awards, and royalty payments
What is a Tax Treaty?
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Some countries have an exemption from tax
withholding for all categories of income and
some may only have negotiated an exemption
for independent contractor payments for
example.
Please check the tax treaty charts on our website
for a current listing of countries exempt from tax
under each income type.
Glacier will indicate the allowability of the
Canadian treaty, however, Purdue University
does not honor the Canadian tax treaty; the
individual can collect the treaty on their annual
return.
IRS Form 8233
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This form will print from Glacier if
applicable
We must have an original signature to
grant exemption
Must have a Social Security Number or
Individual Taxpayer Identification Number
Listing of countries with tax treaties is on
the taxes website
(http://www.purdue.edu/taxes/pdf/treatli
m.pdf)
IRS Form W-7
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Used to apply for ITIN (Individual Taxpayer
Identification Number)
The IRS will issue an ITIN to anyone not
eligible to receive a SSN
Copies, of supporting documentation will be
listed on the Tax Summary printed from
Glacier, should be forwarded with the invoice
voucher or wire transfer request to Cheryl
Byers.
IRS Form W-7
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The tax dept. will send the W-7 into the IRS
and follow for the issuance of a number
Anyone receiving any type of payment should
have a SSN or ITIN
If an individual does not have an ITIN, the
maximum tax withholding of 30% will be
withheld
Until an ITIN or an SSN is received by the tax
department, no tax treaty will be honored
and the maximum tax withholding of 30%
will be withheld from all payments
Travel Reimbursement
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Form PC
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NRA (Glacier)
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Original Receipts
CONUS Subsistence Rate
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Copy of I-94 Card
Refer to reimbursement of
travel expense for NRA
http://www.
purdue.edu/travel/subsisten
ce/welcome.html
Sales Tax is Reimbursable to
Consultants/Visitors

WT and B-2 visa holders
are limited to 9 days
reimbursement and
must sign the 9-5-6
statement.
Prospective Employees
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We can reimburse expenses for trips
to interview for any visa type on nonresident aliens.
Follow the travel department’s
reimbursement policy.
Form 17C is required.
Living Allowances
Key Question to ask: Is the person
PERFORMING SERVICES
(Whether paid fee or not)
versus
FELLOWSHIP
(For the benefit of the individual, to
further their education or training)
Living Allowances
PERFORMING SERVICES
 Reimburse expenses using the Travel
Department’s policies. Paying subsistence is
allowable
 Payments of rent for temporary assignments
(less than one year) should be paid directly to
the vendor, but still need to be processed
through the tax department
 Any amount above allowable expenses is
included in income.
Living Allowances
FELLOWSHIP – No Services Provided
- US Citizens, Resident Aliens, and
Resident for Tax Purposes
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Receipts are not needed
No tax withholding by Purdue
Individual includes payment in taxable
income on their tax return
No tax document issued by Purdue
Living Allowance
FELLOWSHIP – No Service Provided
- Non-Resident for Tax Purposes
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Individual needs to be in Glacier
Receipts are not needed
SSN or ITIN required
Signed IRS Form W-8BEN needed (printed from
Glacier)
Attach a Copy of I-94 card, visa page, and I-20
(for F-1) or DS-2019 (for J-1)
Reported to the IRS on a 1042-S Form
Glacier will indicate the availability of a treaty
Scholarships and Fellowships
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An amount given to an individual to aid in
the pursuit of study, training, or research
Cannot be a payment for services
Grantor specifically intends money be
spent to defray costs of study, training, or
research
Processed through the Division of
Financial Aid (DFA) for currently enrolled
students
Scholarships and Fellowships

Scholarships, Fellowships, and
Training Grants for students not
currently enrolled

US Citizens, Resident Aliens, and
Resident for Tax Purposes
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
Need SSN
Not Reportable to the IRS by Purdue
Individual will receive scholarship letter with
payment
Scholarships and Fellowships
Non Resident for Tax Purposes
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Glacier will determine taxability and forms required
SSN or ITIN required
Form PC
W-8BEN Form Required (print from Glacier)
Attach copies required by the Glacier Tax Summary;
These could include a copy of the I-94 card, visa
page, and I-20(F1) or DS-2019(J1)
Reported to the IRS on a 1042-S Form
Scholarships and Fellowships

If eligible for a treaty
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If not eligible for a treaty
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0% tax withheld
F-1 or J-1 visa holder – 14% tax withheld
Other visa type – 30% tax withheld
Countries with treaties (tax withholding
exemptions) can be found on our website
(http://www.purdue.edu/taxes/pdf/treatli
m.pdf)
Prizes and Awards

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Currently enrolled students must go
through DFA
All others paid through Accounts Payable
An amount received primarily in
recognition of a special achievement or is
the result of entering a contest.
Ex.) Poster contest
Grantor does not specifically state how the
money should be spent.
Prizes and Awards

US Citizens




Need SSN & Home Address
Form PC Required
Report to IRS on a 1099-MISC
Note: If award is directly related to job
performance, must be processed through Payroll.
Prizes and Awards

Non Resident Aliens





SSN or ITIN Required
Form PC
Use Glacier to determine forms required
W-8BEN Form Required
Attach copies of supporting documentation

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I-94 card
Visa page
I-20 (F1)
DS-2019 (J1)
Report to the IRS on a 1042-S Form
Tax withheld at 30% without regard to a tax treaty
Checklist for payments to Non-Resident Aliens

Is visa type eligible for payment of compensation?
Is visa type eligible for reimbursement of expenses?
Refer to visa payment reference sheets.

Obtain authorization from sponsor if needed
(J-1 and H-1B.)

Attach a copy of immigration documents:
If Receiving
Reimbursement
Compensation
of Expenses
o Passport
I-94 Card
o I-94 Card
Authorization from sponsor,
o Visa (except visa waiver)
if needed
o I-20 for F-1
o DS-2019 for J-1
o Employment Authorization Card, if has one
o Authorization from sponsor, if needed

Attach IRS Form 8233, if eligible for a treaty (exemption
from taxes) for an honorarium or fee.

Attach IRS Form W8-BEN for payment of scholarships,
fellowships, awards, or royalties.

Attach IRS Form W-7 if the individual does not have a
social security number or individual taxpayers
identification number (ITIN) - not needed for
reimbursement of expenses only.
NOTE:
If the visa type is unusual or the circumstances are
unique – contact the tax department for guidance.
CASH ADVANCES

Common uses for Cash Advances




Human Subject payments (under $50)
Business or Consultant expenses in country
outside U.S. (Use credit card when possible)
PRF handles cash advances for employee
travel
Call the Tax Group for assistance

Cheryl Byers, phone 49-41165
Human Subjects



A separate Invoice Voucher is required for
each payment to a non-resident. We have
tax withholding and reporting requirements.
If the non-resident is not a current
employee, please have them complete
Glacier
Copy of the Human Subject procedures is on
the Taxes website under the Human
Subjects heading.
(http://www.purdue.edu/taxes/Human_Subj
ects/)
Receipt Guidelines





Original itemized receipt required
Receipt must show paid in full or proof
of payment is needed
Cannot reimburse for alcohol
Receipts for travel reimbursement under
$75 not required, except hotel
Airline receipt must be the ‘Passenger
Receipt’ with the fare amounts noted
Receipt Guidelines


Any international receipt must be
converted to US dollars, unless being
reimbursed in foreign dollars
If receipt is unavailable from vendor, use
the missing receipts form (on an exception
basis only) Travel Form 17MR
(http://www.purdue.edu/travel/xls/missingre
ceipt.xls)
Worker Classification
Determination



“High Profile” Audit Issue
Employee and Independent
Contractor defined
Application of facts and
circumstances – Right to
Control
Behavioral Control –
How the Work is Done

Instructions

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How, when, where to do the work
What equipment or tools to use
What assistants to hire
Where to purchase supplies and services
Training

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Required procedures and methods
Work needs to be done a certain way
Financial Control –
Business Aspects of the Work



Significant Investment
Reimbursement of Business
Expenses
Opportunity for Profit or Loss
Relationship of the Parties

Employee benefits

Essential to daily operations

Continuing relationship

Written contracts
Employee vs.
Independent Contractor

Withholding Requirements



Employee: FIT, FICA, Medicare
Independent Contractor: None
Reporting Requirements


Employee: W-2
Independent Contractor: 1099-MISC
Contacts

Cheryl Byers – Personal Service
Payments


cmbyers@purdue.edu
Pam Hartman – Non-Payroll Tax Accountant


41165
47921
phartman@purdue.edu
Linda Mundy – Tax Manager

40521
lsmundy@purdue.edu
References


All of the forms discussed today can
be found on the Taxes Website
www.purdue.edu/Taxes/
Uniform Guidance Addition


Effective December 26, 2014, the rules related to federallysponsored awards are changing. Institutions of Higher
Education, the Federal Government’s Office of Management and
Budget, its other non-federal partners (state, local governments
and nonprofit organizations) and the audit community have
been working together to streamline the Federal Government’s
guidance on Administrative Requirements Cost Principles, and
Audit Requirements for Federal Awards.
All personal payments will abide by these regulations.