Accounts Payable

The signature of the person responsible for a fund is required. Authority to approve charges may be delegated by the department head to subordinates; however, the department head is responsible for the budget. The appropriate vice chancellor’s signature is required for summer school expenses, memberships, honorariums, cell phones, smartphones, tablets or accessory purchases.

Reimbursements to employees from the university should be done through direct deposit via Chrome River, with original receipts attached. Credit card statements alone do not itemize the goods/services purchased and the cost of each.

• Accounts Payable Manual
• Spending Guidelines
• Banner Revenue Codes and Expense Codes

Checks for the payment of goods and services are normally prepared within five (5) working days after receipt of properly submitted documents. Depending on the workload and volume, this time may be extended. If extenuating circumstances require that a request for payment be given priority in processing, please bring this to the attention of the appropriate accounts payable technician and the document will be given immediate attention. Negligence or delays from lack of planning do not constitute an emergency and the request will be processed through normal procedure.

For information on purchase orders you may either contact Accounts Payable for information on payments or contact the Purchasing Office for information on purchase orders and how they work. You may also refer to Purchasing Policy for purchasing guidelines. Purchase orders must be issued for goods and services exceeding $1000.00 (excluding tax and shipping). Registration fees, dues, memberships, catering, food, drinks, and travel may be paid from a check request regardless of the amount. Travel includes bus trips, airlines, auto rentals, hotels, gasoline and mileage reimbursement. Maintenance and lease agreements require a purchase order regardless of the amount. This is to have agreements on file for internal control purposes. State contract items require a purchase order regardless of the amount.

Please Note: Separate check requests are required when a payment is to be divided between funds since the monies are disbursed from different memo banks (State 1 or 2xxxxx, Agency 8-80xxx, Trust 3-3xxxx or 5-5xxxx, and Foundation 9-94, 9-95 or 9-96xxx funds should be separated).

Check requests which are not completed with the appropriate signatures and documentation will be returned to the department. Please assign the departmental fund and account from which payment is to be made.

Auditors require that the following documentation be attached to an approved check request:

1. Proof of payment (such as the on-line order confirmation) indicating amount charged to the credit card.
2. Proof of receipt of merchandise (such as a packing list). If no packing slip is received, a signature is required to confirm merchandise has been received.

Step 1: Determine what type of payment the student will be issued. These include travel or supply reimbursements, departmental awards, scholarships, prizes, or grants, employment service awards, or payments for services. See below for additional information and detailed instructions on how to process these types of payments.

Step 2: Complete the Student Check Request form if the payment is related to Supply Reimbursements, Payment for Services, or Employment Service Awards.

• Please understand that all of the information on the Student Check Request form is required to ensure that all student payments are handled properly.
• Contact the Office of Financial Aid and complete the Student Remuneration Form form if the payment is for a Scholarship, Grant, Award, or Prize. The form is located on the Office of Financial Aid’s website listed under Forms for Faculty.
• Contact the Travel Office at 828.251.6243 or see below for more information on student travel.

Step 3: Submit the Student Check Request form to Accounts Payable once it has been completed. Accounts Payable is located on the first floor of the Administration and Finance side of Phillips Hall in room number 119. The CPO number for Accounts Payable is 1423 and you can reach them via phone at 828.251.6663.

Once the form has been received by Accounts Payable it will be processed within two weeks. We may contact the check requester if additional information is needed. If your student check request is time sensitive or the deadline is fast approaching, please indicate the preferred due date on the form and mark it urgent.

Student Check Request (PDF)

Student Check Request (Excel)

Student Remuneration Form (Excel – Located under Forms for Faculty)

For assistance in determining the correct form or assistance in completing the form, you may contact Hunter Fava at hfava@unca.edu or 828.251.6128.

Student travel is processed through our online travel system, Chrome River, and may be recorded on the student’s account and financial aid if required due to the travel type. The student related travel falls into three categories: business purposes, travel for-credit, or travel not-for-credit.

Student travel for business purposes is related to employment or student organizations. Student travel that is required by a course syllabus, where all students must travel to an event in order to earn a passing grade in the course, is considered travel for-credit. UNC Asheville rarely has for-credit student travel where the student is reimbursed directly for the travel costs. Most student travel is optional, or is not required by a course syllabus and therefore is considered as travel not-for-credit.

Examples:

Business Purpose: Student workers in the Sustainability Office may be sent to a waste reduction facility for training.

Travel for-credit: Students studying abroad, visiting an off-site location to record water levels as part of a course.

Travel not-for-credit: Undergraduate research, students attending conferences or events related to a course, their major, or an educational area of interest.

Student Travel Paid by Faculty/Staff

If Faculty/Staff are paying for any portion of travel on the behalf of a student(s), the Faculty/Staff must be sure that a pre-approval has been created and approved for each individual student. This pre-approval will be in the name of the Faculty/staff with student affiliation selected.  Once the travel has ended, the Faculty/Staff will create an expense report for their reimbursement, for each individual student, under the Student Traveler Affiliation. Contact the travel office for questions at 828.251.6243.

Student travel paid by Faculty/Staff will still be categorized as business purposes, travel for-credit, or travel not-for-credit and will have the same tax and financial aid implications.

Tax Implications:

Whether the student or another individual is being reimbursed for the travel costs, the student’s account will include the travel reimbursement on their 1098-T form as a scholarship/grant for tax purposes unless the travel is business related.

Financial Aid Implications:

Business Purpose: Travel costs will not be included in the student’s financial aid award.

Travel for-credit: Travel costs will be included in the student’s financial aid award as a travel grant.

Travel not-for-credit: Travel costs will not be included in the student’s financial aid award, however, it will show on the student account as a travel grant and will be included on the 1098-T form.

In rare instances, students may be awarded additional funds in conjunction with their student employment for outstanding service or exceptional performance. These amounts are awarded at the discretion of the employing department.

These additional payments are reported to the Internal Revenue Service on form W-2 and may be considered taxable income to the student. There are no financial aid implications.

Scholarships, grants, prizes, or awards to students, except for those related directly to student employment, need to be processed through the Office of Financial Aid using the Student Remuneration Form. This form is located under Forms for Faculty.

Please contact finaid@unca.edu directly before notifying the student or completing the Student Remuneration form.

Examples:

Scholarship: The Art department has a named or specific scholarship that they award to a student annually from a dedicated scholarship fund. The department completes the Student Remuneration Form and the Office of Financial Aid disburses the scholarship to the student.

Prize or Award: The Department of English has a general fund that they use to give students a prize/award for winning a writing contest. The department completes the Student Remuneration Form and the Office of Financial Aid disburses the scholarship to the student.

Award not related to employment: A student employee working for the Biology Department wins an award for a particular laboratory competition. Because this award is not related directly to the student’s employment, the department completes the Student Remuneration Form and the Office of Financial Aid disburses the award to the student.

Employment service award: A student employee working for the Biology Department receives additional earnings for exceptional leadership on a special project. This payment for outstanding service is given in conjunction with the student’s job responsibilities. The department completes the Student Check Request form and submits it to the Accounts Payable Office.

Financial Aid and Tax Implications:

All scholarships, grants, awards, and prizes, except for employment service awards, will be counted as a part of the students financial aid and will be disbursed into the student’s account. These funds will be recorded as part of the student’s scholarships or grants on the 1098-T form for tax purposes.

Employment service awards are reported to the Internal Revenue Service on form W-2 and may be considered taxable income to the student. There are no financial aid implications for these awards.

In rare situations students may purchase supplies on behalf of the university. Often times these purchases are related to student clubs/organizations. These supply purchases may be reimbursed submitting the Student Check Request form to Accounts Payable along with the original receipt.

Reimbursements to students for supplies used during classroom related activities could be considered an award. An example of this is when several students purchase supplies for a project; however, only one student is singled out for reimbursement.

Examples:

• Decorations for organization’s Homecoming float.
• Sidewalk chalk for notes regarding student club meeting.
• Unique parts for building a robot as part of a class project (pre-authorized purchase for reimbursement).
• $100 reimbursed for having the outstanding poster when the total cost of supplies was $200. (Award)
• Three students build robots, one is selected as the most innovative, and supplies for said robot are reimbursed. (Award)

Financial Aid and Tax Implications:

Most supply reimbursements will not be included in the students financial aid or 1098-T form. Only supply reimbursements that are considered an award will be counted as a part of the student’s financial aid and recorded as part of their scholarships or grants on the 1098-T form for tax purposes.

• All new and existing vendors will need to register on the PaymentWorks platform to receive payments from UNCA. The purchasing team is actively working to invite all of our top existing vendors to have them registered by July 1.
• Vendor registration applies to all entity types including individuals such as Independent Contractors and Honorarium recipients.
• All campus users can invite new vendors by logging in with their UNCA SSO via this link. Here is a step by step video on how to invite vendors!
• You no longer need to collect W-9’s and vendor information forms (VIF) from vendors as this information is collected as part of their PaymentWorks registration.

Speed up your payments with our optional EarlyPay Accelerated ACH program. Instead of waiting until the due date, receive payment immediately upon invoice approval. Have questions? A vendor consultant at PaymentWorks is available to assist—contact them at EarlyPayInfo@PaymentWorks.com.

• Accounts Payable / Payments – UNC Asheville employees and vendors should contact accountspayable@unca.edu with vendor payment questions.
• Purchasing / Vendor Onboarding – UNC Asheville employees and vendors should contact purchasing@unca.edu with questions regarding vendor onboarding and maintenance.
• PaymentWorks – Vendors should contact PaymentWorks Support with questions regarding use of the PaymentWorks platform.

• PaymentWorks Help Center
• PaymentWorks Support
• How to Initiate an Invite

An honorarium is a monetary gift to outside persons who contribute their expertise to the enrichment of curricular and co-curricular educational programs. It is not a payment arising from a contractual obligation for services rendered. Honorariums cannot be used to pay UNC Asheville students, UNC Asheville employees, or employees of another NC state agency. All honorarium recipients must register via PaymentWorks for onboarding and electronic payments. Any University employee can send an invite via PaymentWorks.

To pay an honorarium, complete the Honorarium form and attach it to the Independent Contractor/Honorarium report type in Chrome River.

For federal employment tax purposes, the usual common law rules are applicable to determine if a worker is an independent contractor or an employee. Under the common law, we must examine the relationship between the worker and the business. All evidence of the degree of control and independence in this relationship are to be considered. The facts that provide this evidence fall into three categories – Behavioral Control, Financial Control, and Relationship of the Parties.

Please do not allow anyone to begin service until a determination is made. The IRS may assess penalties for misclassification of an individual providing services to the university. If an individual is determined by the IRS to be an employee instead of an independent contractor, the university may be held liable for the individual’s employment taxes, penalties, and interest assessed for not withholding income and employment tax, and a separate misclassification penalty.

To assist in this determination, UNC Asheville has created a checklist and process for campus. Following is the process with applicable contacts and forms links:

1. The Independent Contractor Checklist is required and a determination of status made PRIOR to the completion of other forms and PRIOR to services being provided.
2. The completed checklist should be submitted to:
   Hunter Fava
   Assistant Controller – Financial Operations
   117 Phillips Hall, CPO 1425
   hfava@unca.edu
3. The checklist will be reviewed to determination the proper classification. Human Resources may assist if necessary.
4. If the classification is determined to be an independent contractor, the department will complete the Independent Contractor Agreement form. The University employee working with the Independent Contractor will need to invite them to the PaymentWorks platform to ensure timely payment via ACH. The use of the standard UNC Asheville Independent Contractor Agreement, which has been approved by our legal counsel, is preferred. If the decision is made to use the vendor’s agreement, it must be approved by the university General Counsel:
   Andre Lindsay
   General Counsel
   alindsa1@unca.edu
5. Attach the completed contract and invoice in Chrome River under the Independent Contractor/Honorarium report type. All independent contractor payments are now completed in Chrome River. If you do not see your vendor in Chrome River, please invite the vendor to PaymentWorks.
6. If the classification is determined to be a temporary employee, the department will be notified and will need to work with Human Resources to complete the proper documentation.

North Carolina GS 105‐163.1 and GS 105‐163.3 requires income tax to be withheld at the rate of 4% from payments of more than $1,500.00 paid during a calendar year to nonresident individuals or nonresident entities for personal services performed in North Carolina in connection with a performance, an entertainment or athletic event, a speech, or the creation of a film, radio, or television program. Additionally, NC requires income tax to be withheld at the rate of 4% from payments of more than $1,500.00 paid during a calendar year to ITIN-Individual Taxpayer Identification Number (usually foreign national individuals) contractors for services provided within the State. See NC-30 for additional information. The 4% NC Withholding Tax is automatically calculated within the Independent Contractor/Honorarium report type within Chrome River.

Examples of Services Subject to 4% withholding:

• Performances
• Concerts/entertainment
• Athletic Event
• Speeches (includes any speech that amuses, entertains, or informs is subject to the
  withholding requirement. This includes instructors at seminars that are open to the
  public for an admission fee or are for continuing education.)
• Creation of a film, radio or TV program
• All services performed by an ITIN (Individual Taxpayer Identification Number)
  holder/contractor

Who is subject to the NC 4% withholding:

• Nonresident Contractors
• Nonresident Entities
• ITIN (Individual Taxpayer Identification Number) Holders

PaymentWorks:

For either an honorarium or independent contractor payment, the vendor agrees to receive all payments from the University of North Carolina at Asheville via Automated Clearing House (ACH) direct deposit. Vendor shall provide accurate and complete banking information on the University’s required ACH enrollment form via the PaymentWorks platform prior to the issuance of any payments. Any changes to banking information must be submitted via PaymentWorks. Failure to submit updated banking information may result in delay or disruption of payment. The PaymentWorks platform uses security protocols and encryption standards to ensure the secure transmission and processing of payment and banking information.

Charges paid for any type of advertising are reportable income and we are required to code payments for 1099 purposes (unless the company is incorporated). If a certain dollar threshold is met during the calendar year, a 1099 form must be generated to the vendor at the end of the year.

Do not pay for advertising and ask for reimbursement. This gives the appearance of avoidance of compliance rules and could result in IRS auditing exceptions. Submit a completed, approved check request with the invoice or online printout attached, and payment will be processed directly to the company/organization. Some reimbursements have been processed only after review of the type of company/organization, the dollar amount paid during the calendar year and where it appeared the company would not be paid enough to warrant a 1099 form.

Gift certificates are not to be purchased and given as compensation to any individual (including students, faculty, staff) who gives something (time/value) to the university. IRS views gift certificates the same as a cash payment and the dollar amount as reportable income. We track payments for services for tax reporting purposes. If a certain threshold is met during the calendar year, a 1099 tax form is generated and sent to the individual. When some other form of compensation is given the individual instead of direct payment, we can’t track or match the payment from one department with the activity of other departments.

In compliance with IRS regulations, all payments to employees of the university must be processed through payroll. A check request/honoraria form may be submitted for all other individuals.

No food or alcoholic beverage purchases, entertainment or token items, flowers or gifts are to be paid from state funds. (Subsistence/meals included on travel reimbursement forms may be paid from state funds). Food service invoices cannot be paid from state funds unless the Chancellor or designee was present at the event and unless the Chancellor initiated the meeting and gave written approval in advance (specific rules apply). The Chancellor’s attendance at a social event does not constitute use of state funds to pay for the event. No late fees are paid from state funds.