Types of AP Payment

 

Direct Payments (eVA exempt)

A direct payment occurs when an item or service is purchased outside the Procurement system (eVA) and an invoice, contract or award letter is presented to Accounts Payable for payment. Please refer to the Procure-To-Pay Matrix for a full listing of eVA exempt purchases.

Types of Allowable direct payments:

Awards and Prizes

Payments to individuals for appreciation, recognition, prizes, and awards are considered taxable income to the recipient.  Awards and prizes to non-employees must be for a valid business reason, which may include a contest, door prize, etc. without the purchase of a chance or ticket.

Awards and prizes to non-employees are processed using the Vendor Payment Form. Please include the following information as attachments: (1) Award Letter (2) Description of Program or Competition (3) List of Recipients (4) Announcement (e.g. flyer) of the Competition (if available). This additional information is mandatory.

Advertisements

Cost of placing ads in newspapers and other media forms (such as magazines, journals, billboards, websites, radio, television or similar public media) for faculty and classified position employment, drug studies, clinical research studies, research projects, and procurement advertisements (ads must meet university identity standards). Advertisements (such as in newspapers, magazines, journals, billboards, websites, radio, television or similar public media.) Cost of placing ads in newspapers and other media forms for faculty and classified position employment, drug studies, clinical research studies, research projects, and procurement advertisements (ads must meet university Identity standards.)

Advertisements (such as in newspapers, magazines, journals, billboards, websites, radio, television or similar public media.) Cost of placing ads in newspapers and other media forms for faculty and classified position employment, drug studies, clinical research studies, research projects, and procurement advertisements (ads must meet university Identity standards.) Advertisements (such as in newspapers, magazines, journals, billboards, websites, radio, television or similar public media.) Cost of placing ads in newspapers and other media forms for faculty and classified position employment, drug studies, clinical research studies, research projects, and procurement advertisements (ads must meet university Identity standards.)

Honoraria

An honorarium is a one-time payment granted in recognition of a special service or distinguished achievement for which propriety forbids any fixed business price to be set and is manifested by an activity such as a special lecture, participation in a workshop or panel discussion, or similar activities. The payment of an honorarium may not be made to a person employed by the University.

The payment of an honorarium may not be used in lieu of a consulting agreement or independent contract as a means of paying compensation for professional services. A request for payment of an honorarium must be submitted to Accounts Payable on a Vendor Payment Form and must be accompanied by an Honorarium Understanding Form. Honorarium payments must be charged to an honorarium expenditure account.

The University complies with federal and state tax regulations governing any applicable taxability, tax reporting and/or withholding of taxes on any University honorarium payments.

Human Subject Payments

In order to promote participation in a research study and for the university to remain competitive in the research field, it may be necessary for participants to receive incentive payments in the form of cash or gift cards (“value-added card”). When cash or value-added cards are awarded, W&M must comply with Internal Revenue Service (IRS) tax regulations, federal, state and sponsor guidelines.

Research incentives in the form of value-added cards may be awarded to participants for a face value not to exceed $100.00 per instance. If payments will be made to a particular participant for a face value in excess of $100.00; to ensure proper tax reporting and withholding, the Financial Operations team strongly encourage you to pay by voucher, rather than by cash or gift certificate.

Research participants should be informed that information collected allows W&M to meet government reporting obligations and precautions are in place to keep their information secure. Participants may be given the opportunity to participate without receiving payment if they do not wish to provide identifying information. In order for a research participant to receive compensation one of the following forms should be completed:

Human Subject Payment Log – HSPL (Payment less than $50)
Human Subject Payment Voucher – HSPV1 (payment between $51 to $100)
Human Subject Payment Voucher – HSPV2 (payment greater than $101)

Please see the processes below for cash and gift card payments.

Direct Payments by Cash

Payments to research participants by cash will be made by:

  1. Requesting a cash advance. Departments should follow the University’s outlined cash advance process.
  2. Research participants must sign an HSP (log or voucher) at the time they actually receive the cash. The form to use depends on the cash amount.
  3. Departments will document use of their cash advance by processing a Vendor Payment Request Form (VPRF). The proper back up documentation will be the HSPs (logs or vouchers). The VPRF processing will clear the outstanding advance. The only portion that is payable against the advance is the sum of all cash distributed.
Direct Payments by Gift Cards

Purchase of Gift Cards for the purpose of payments to research participants will be purchase by the researcher by:

  1. Requesting a cash advance. Departments should follow the University’s outlined cash advance process.
  2. Researcher will purchase the gift cards and maintain original receipts from vendors of all gift cards purchased.
  3.  Researcher is responsible for the control and accountability of all gift cards purchased and reimbursement would only be permitted for those gift cards accounted for by the signed participant Human Subject Payment (Log or voucher).
  4. Research participants must sign an HSPL or HSPV (log or voucher) at the time they actually receive their gift card payment. The form to use depends on the amount of the gift card.
  5. Departments will document use of their cash advance by processing a VPRF. The proper back up documentation will be all gift cards purchase receipts and all HSPL or HSPV (logs or vouchers). The VPRF processing will clear the outstanding advance. The only portion that is payable against the advance is the sum of all cards distributed.
  6. The AP office will not be able to credit any portion of the advance for gift cards that are not distributed to participants.
Participation Stipends

A stipend is a payment given to an individual or organization as an incentive to participation in a state sponsored program or activity. An award letter or other supporting documentation with a description of the program and the amount to be awarded should be attached to the Vendor Payment Request Form. The expense should be charged to account 714180.

Student Payments

William & Mary makes various payments to students for tuition and fees, teaching, research, other education-related activities and employment.

In awarding and processing such payments, care must be taken to classify these payments correctly for tax purposes and the impact of the Affordable Care Act.

This document addresses types of payments made to both graduate and undergraduate students, including scholarships, fellowships, stipends, prizes and awards, compensation for services and reimbursements. 

Student Defined

To be considered a W&M Student you must:

  • Be Accepted for Admission and Enrolled in an Approved Degree Program
  • Students must be enrolled in an approved degree-seeking program to be eligible for any financial aid from William & Mary. Students studying in an approved study abroad program are eligible to apply for financial aid from the university.
  • Enrollment can be full- time or part-time

Term

Definition

Qualified Scholarship/ Fellowships

This category includes payments to the student (those in a degree program) or credits to a student’s account used only for “qualified tuition and related expenses,” which are limited to tuition and required fees, books, supplies, or equipment.

Non-Qualified Scholarship / Fellowship

A non -qualified scholarship is a scholarship payment used for expenses that are not qualified tuition or related expenses (e.g. amounts used to pay optional fees, room, board, travel and personal expenses) at the discretion of the student.

A non-qualified fellowship is payment for a research fellowship.  The student will be expected to perform independent research. If the fellow is a student this research would be part of their educational pursuits. It is important to note that the student is performing independently and not under any direct supervision or direction. They may seek advice or assistance from colleagues, or may collaborate with others in their particular discipline; but the final decisions of what to do, how to proceed, and in what direction the research goes is decided by the fellow.

Graduate Assistantship

An academic job held by a graduate student, which involves paying for services rendered. Graduate assistantships can be classified as; Graduate Assistantships (GA’s), Teaching Assistantships (TA’s) and Research Assistantships (RA’s).  These types of individuals are performing services in order to receive compensation and are subject to the control of and supervised by an employee of the University making the payment taxable and reportable to the IRS.

Undergraduate Employment

If an undergraduate student is to receive payment for an event that occurred once, then it is a one-time payment.  If the student is continuing to work for an extended amount of time it is an hourly job.

Stipend

These type of payments often takes the form of a subsistence allowance given to students to help defray living expenses during the educational or training experience.  Departments must assess the purpose of the payment to determine how it will be treated (i.e. for academic pursuit of the individual or compensation for services rendered).

Research Scholarships / Fellowship

Scholarships/Fellowships given to students in a term of non-enrollment (example: summer) for the pursuit of their studies and research.

Awards

Awards are given to students in recognition of academic achievement.  (i.e. Higher GPA).

Prizes

Prizes are given to students who have submitted entries to a judged competition, for example, the best architectural design, best short story, or music or poster competitions.

Reimbursements

Students who incur costs for approved activities that primarily benefit W&M may be entitled to reimbursement.  Reimbursements will be always be processed by the Accounts Payable Office. See the university Procurement Reimbursement Policy.  

Honorarium

A payment in recognition of an individual’s services for which fees are not legally or traditionally required for an academic related event. Typically this includes guest speakers and other creative academic related activities. Students do not receive honoraria at William & Mary.

Guidance on how to process a student payment.

The most important rules to remember when determining how to pay a student are:

  1. Define what type of payment the students are receiving 
  2. Verify if the student is enrolled in the semester for which the money is being awarded and
  3. Recipient tax status (US Citizen vs NRA).  


Once you have determined the answer to each 3 questions above, you may proceed with the payment request.  To determine which office processes the payment please use this document: Student Payment Processing.

Student Payment Checklist (pdf)

Student Payment Spreadsheet (excel file)

Reimbursements

Faculty, Staff and Students Reimbursements

Personal reimbursement can be issued to faculty, staff, and students who have used their own funds to obtain small items not available through Procurement and Contracts. There are a limited number of circumstances where reimbursement is the appropriate method to conduct the University’s business:

  • Business meals including catering (Chrome River)
  • Express services when out of town
  • Printing if less than $50
  • Membership dues
  • Travel (Chrome River)
    • Conference Fees
    • Lodging
    • Meals
    • Parking fees and tolls
    • Personal Vehicle Mileage
    • Public carriers
  • Continuing Education course tuition
  • University-owned vehicle & boat licenses/tags/decals
  • Emergencies only with written justification
  •  An individual requesting an ineligible reimbursement will be given one warning.  Subsequent requests will not be reimbursed.
Non-Resident Alien Payments

It is the responsibility of AP and Payroll Offices to ensure the compliance of Federal Regulations applicable to all payments made to Non-Resident Aliens following basic guidelines provided by: (1) Department of Homeland Security, (2) Department of State, (3) Internal Revenue Service stipulates that any money paid to any NRA individual is both taxable and reportable. To find out more about the Non-Resident Aliens process please visit the Payroll Foreign National Website.

Vendor Payments requiring a Purchase Order

Vendor transactions are initiated at the campus department level. The vendor must send the original detailed invoice to the ordering department. The department must immediately stamp the invoice with the received date. The department should then prepare the Vendor Payment Request Form, obtain all approval signatures, attach original invoice, enclosed the Purchase Order number and send to the Accounts Payable Office for processing. The expectation is that the department forwards this information with enough time (at least 15 days) for the invoice to be paid in accordance with the Prompt Payment Statutes.