W-9 Requirements for Payment Request Vendors by iht11609

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									                               W-9 Requirements for Payment Request Vendors



          For the purpose of this document, a vendor is defined as any individual or business paid via the
          payables system. The vendor shall be referred to herein as “the payee”.

          The Office for Supply Management Services (SMS) requires IRS Form W-9, issued within the
          past year, for all new payees prior to setup in the vendor file of Cornell’s payables system. SMS
          will not accept a W-9 for a new payee if it is dated more than one year prior to the request to
          set up the new payee. Note: This should not be construed to mean that SMS requires a payee
          to submit a new W-9 every year.

          The above requirement applies to all new payees, except as noted below, for all payments that
          will be made through the payment request system.

          Please refer to page 3 for instructions on handling foreign payees.




Reasons for this requirement:
     1.   The W-9 ensures that SMS has the payee’s correctly spelled name and correct mailing address for
          purposes of 1099 reporting.

     2.   The W-9 ensures that SMS has a business’s legal name and DBA name.

     3.   The W-9 ensures that SMS has a payee’s correct Tax Identification Number (FEIN or SSN).

     4.   The W-9 certifies that the payee is a U.S. entity as defined on the W-9 form.

     5.   The W-9 certifies the payee’s tax withholding status.




Exceptions:
     1. Payee is listed in Peoplesoft Shared Community: A W-9 is not required from a payee if the
        payee’s SSN is listed in the Peoplesoft Shared community, e.g. a Cornell faculty member, staff,
        student, alumnus or prospective student. However, if the SSN is not included with the payee’s
        information in the Peoplesoft Shared Community, SMS will notify the unit/BSC who should then
        contact the payee to request a W-9. This also applies to foreign Cornell faculty, staff, students
        or alumni.

     2. One-time payment for travel reimbursement: For a payee who will receive a one-time travel
        reimbursement, the BSC employee processing the payment request should fill out the payee’s
        name and address on the W-9 form. The BSC preparer should then print and sign his/her own
        name on the form, along with the date, his/her email address, and a note attesting to the fact
        this is a one-time payment for travel reimbursement. If the BSC preparer has reason to believe
        that the payee will receive any subsequent payments, e.g. honoraria or speaker fees, then the
        BSC preparer should request a W-9 from the payee. Note: This exception does not apply to
        any other type of reimbursement and it is only valid through June 30, 2010.



Office for Supply Management Services                     1                                     rev: December 22, 2009
                               W-9 Requirements for Payment Request Vendors

     3. Human participant fee: For a payee who will receive a human participant fee for a confidential
        research study, the BSC employee processing the payment request should fill out the payee’s
        name and address on the W-9 form. The BSC preparer should then print and sign his/her own
        name on the form, along with the date, his/her email address, and a note attesting to the fact
        this is a human participant fee for a confidential research study. Note: This exception is only
        valid through June 30, 2010.

          Note: There will be no exceptions for refunds processed through the payables system.



W-9 Guidelines for all other payees:
     1.   Except as noted above, when a unit/BSC requests that a new payee be set up in the payables system, each
          BSC or their designated unit should contact the payee to request the signed W-9.

     2.   The unit/BSC who requests the W-9 is responsible for collecting the W-9 from the payee. The unit/BSC
          should only receive a W-9 from a payee via US Mail, secure FAX machine or electronic drop box. These
          are the methods of transmission approved by the CIT Security Office. The units/BSCs should contact Tom
          Young (tcy1@cornell.edu) at the CIT Security Office if they have questions regarding the handling of
          sensitive data.

     3.   Prior to SMS setting up a payee in the payables system, the unit/BSC should send the original, unaltered
          version of the W-9 received from the payee, signed by the payee, to SMS. The form should be sent to
          SMS, labeled with the payment request number. SMS will shred W-9s not labeled with the payment
          request number unless prior approval has been granted to a unit/BSC to send a payee’s W-9 to SMS
          before the payment request has been entered into the system. Note that the system automatically
          deletes a payee from the system if the first payment is not made to the payee within 90 days.

     4.   W-9s should be transmitted to SMS by secure FAX (see Note (d) below). The university's web-based
          drop box service is another option, but the unit/BSC transmitting the W-9 to SMS should email Patti
          Giordano (pag4@cornell.edu), either from his/her own email account or by checking the “Notify
          Recipients by Email” box within the drop box utility, to let her know that the W-9 is in the drop box.
          Please note that campus mail is not an acceptable method of sending W-9s to SMS.

     5.   It is the responsibility of the units/BSCs to ensure the proper handling of sensitive data in their possession.
          After the original W-9 received by the unit/BSC has been sent to SMS, any copies remaining within the
          units/BSCs should be shredded or stored in a locked cabinet/drawer. The units/BSCs should contact Tom
          Young (tcy1@cornell.edu) at the CIT Security Office if they have questions regarding the handling of
          sensitive data.

     6.   It is not acceptable for anyone, whether it is a payee or a Cornell employee, to email scanned copies of
          W-9s.

     7.   If a payee is not willing to submit a W-9, payment will be delayed, pending review by SMS.

     8.   Once SMS has received the W-9, and the new payee request has been submitted, and a new payment
          request has been entered into the system and forwarded to the “ASSIGN” queue, SMS will set up the new
          payee in the vendor file.




Office for Supply Management Services                       2                                       rev: December 22, 2009
                               W-9 Requirements for Payment Request Vendors

     9.   If the payee is foreign, but not Cornell faculty, staff or students, contact uco-tax@cornell.edu before
          proceeding. Include payee name, payee mailing address and type of payment, along with your contact
          information. Tax Compliance will provide guidance on “next steps.”


          Notes:

               a) These guidelines only apply to new payment request payees.

               b) SMS will continue to contact all new purchase order vendors to request W-9s and Supplier
                  Information Forms.

               c)   This procedure will add extra time to the process of adding a new payee to the system.

               d) A secure FAX machine, as defined by the CIT Security Office, is as follows:

                    During business hours, the FAX machine must be in a location where it is accessible only to
                    authorized departmental personnel. (That is, visitors to the office cannot walk up to it, and
                    there are no issues with people in the office seeing the material that is being FAXed in.) Off-
                    hours and whenever no one is in the office, the FAX machine has to be in a physically secure
                    (locked) environment.



Supply Management Services Mailing and FAX information:

          Cornell University                                                      Phone: 607-255-3804
          Office for Supply Management Services                                   Secure FAX: 607-255-9450
          395 Pine Tree Road                                                      APPS Helpline: 607-254-5300
          Suite 330
          Ithaca, NY 14850




Foreign Payee Guidelines (provided by the Controller’s Office)

A foreign payee is:

1) An individual who is a citizen of a foreign country and is not:

     •    A dual citizen with the U.S.
     •    A holder of a US “green card”
     •    A US resident alien (This is a tax term; only uco-tax@cornell.edu can make this evaluation.)

2) An entity that has no permanent place of business in the US.

Items of Note:
     1.   Units are responsible for contacting uco-tax@cornell.edu before requesting set up of a foreign payee who
          will be paid by payment request. In the absence of guidance from tax compliance, Supply Management
          (SMS) requires W-9.



Office for Supply Management Services                      3                                       rev: December 22, 2009
                               W-9 Requirements for Payment Request Vendors

     2.   If a unit/BSC knows for certain that the payee is US, ignore this section.

     3.   If unit/BSC knows for certain that the payee is foreign ignore, the section below on “clues.”

     4.   If a unit/BSC is uncertain about the payee’s status, the unit can: a) inquire of the payee, or b) use the
          following clues as a basis for contacting UCO-Tax.


Clues that the Payee might be foreign:
     •    Payee’s address is foreign
     •    Payee’s financial institution for “wires” is foreign
     •    Payee otherwise mentioned that (a) they don’t have a US federal ID, or (b) their US federal ID begins with
          “98” (i.e. 98-XXXXXXXX).

          Note: Clues are not determinative of status; merely signals that the payee might be foreign.


Unit/BSC Roles and Responsibilities Related To Foreign Payees


     •    Evaluate whether the payee is or seems foreign.

     •    Contact UCO-Tax and provide the payee name and type of payment using one of the categories:
               Refund
               one-time travel reimbursement
               honorarium
               royalty
               procurement of goods
               procurement of services

     •    Route the New Vendor Request Form (via Cynergy workflow) to UCO-Tax prior to submitting to the
          request to SMS.

          Note: The unit/BSC roles and responsibilities related to foreign payees are applicable from Jan 1, 2010
          through Dec 31, 2010 to be revisited.




Office for Supply Management Services                       4                                       rev: December 22, 2009

								
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