Spring 2010 Financial Services Conference Welcome & Housekeeping items A/P Future HRS impacts on Accounts Payable Only Tax Reporting is affected •W2s •Moving to Monthly Reporting •Changes in Business Processes to record adjustments – More user friendly •1042s •HRS using an outside vendor for 1042s filing •HRS still creating specifications •SFS specifications on hold . Updated Mass Voucher Load New process available Fall/Winter 2010 PeopleSoft/SFS Updates and Maintenance Packs No maintenance Packs or Updates this Fall or Spring Voucher Templates • Unique to a Vendor, not “generic” • Useful for repetitive entry and multiple line vouchers • Page 37 of the Accounts Payable Manual (handout) • Navigation: Accounts Payable>Vouchers>Add/Update>Regular Entry • Voucher Style – Template • Template vouchers do not pay and can be updated at anytime Template Vouchers Select Voucher Style – Template Voucher Template Vouchers Create a unique Template ID and Description Template Vouchers Enter Voucher in same manner as a regular voucher. Save voucher. Template Voucher To use the template. Go into voucher entry as usual but use the “Worksheet Copy Option”. From the menu, select “Template”. Template Voucher There is a list of templates associated to this vendor. Template ID and Description will help user to select the correct template. Select the template by using the “Copy from template” button. Template Voucher Template information copied into the new voucher. Complete voucher and save. Holding Payments • Hold Payments to a Vendor – IRS Lien or vendor dispute • Hold Payment on a Voucher – Invoice is in dispute. Cancelling a payment and need to change remit to address, etc. • Hold Purchase Order from Further Processing. A PO-related issue. Hold Payments to a Vendor Be sure to place the hold an all locations Add a new details pane Hold Payments to a Vendor Vendor will not be paid until the hold is unchecked. Add a new effective dated Location Details pane. Do not forget to save after updating the vendor. To take vendor off the hold, add another new effective dated “Details” pane and uncheck hold. Voucher Hold Payment On the Payment Panel of Voucher Entry. Check Hold Payment and Save the Voucher. You have to “uncheck” for the voucher to be paid. User must have security to “Manually Schedule Payments”. PO On Hold for Further Processing Process a Change Order Against the PO PO On Hold for Further Processing Enter Comments – Be sure to Check “Send to vendor”. Click OK. PO On Hold for Further Processing Save PO and status will change to “Approved”. Then place PO on Hold. PO On Hold for Further Processing Do not forget to “Save”. Vendor Management Vendor Management How to use Equifax Vendor Information Still in Development (SFDEV only) (See handout) Vendor Management - Equifax Existing Vendors have a direct link to the bolt-on when there is a “high confidence match” to the Equifax Vendor Database Vendor Management - Equifax Navigation to Bolt-on for Equifax Vendor information SFS Extensions > Equifax Vendors Vendor Management - Equifax Equifax matches to our vendor files Campus and Vendor ID Vendor Management - Equifax Includes Total Spend (all vouchers) for the last 2 years Vendor Management - Equifax Demographic Information Vendor Management - Equifax Unique Equifax/AT Number and Parent Number Vendor Management - Equifax Demographic Information – Minority-owned, Woman-owned, Veteran- owned, etc. Vendor Management - Equifax Run queries to analyze vendor data Example of a query of the certification fields UW_89_EQU_CERT_VND Vendor Management - Equifax Search for Existing Vendors Navigation SFS Extensions> Equifax Vendors > Equifax Vendor Search Vendor Management - Equifax Search for vendors across UW- System Vendor Management - Equifax • What roles will have access to this Information? AP_CLERK • AP_PWR • PO_PWR • VNDR_COM • VNDR_PWR • BU_ADMIN • UWSA_SUPPORT All users with access to: Vendor Identifying Information Minority Vendors • Use Vendor Reporting Elements handout as a guide. • Types of Minority Vendors – Wisconsin Certified Minority Business – Wisconsin Certified Woman Owned Minority Business – Other Certified Minority Business (recognized by another authority, state or federal, as a minority vendor) – Self-Certified Minority Business (We would direct them to State for state certification) Minority Vendors Where to maintain the vendor record? Navigation – Vendors>Add/Update>Vendor Identifying Information Scroll down to Addition Reporting Elements Minority Vendors Additional Reporting Elements: Scroll Down record and click on “Expand All” Vendor entry drop-down menu for vendor (contractor) type Minority Vendor Reporting • Query for Minority Vendor List – UW_89_MIN_VNDR • Query for Minority Vendor Vouchers – UW_89_MIN_VNDR_VCHRS Public Query COL_88_MINORITY_VEND_PAYMENT Respect public queries Vendor W-9 Examples W-9 Alternate Names Line 1 Withholding Alternate Name1 Line 2 Vendor Name1 S F This example applies when the vendor returns a W-9 with information in both Line 1 and Line 2. See handout W-9 & Alternate Names W-9 Line 1 Name – If different from the Business Name on Line 2 – Enter this on the Withholding Alternate name under the Address Tab The Vendor W-9 Line1 Name should not be entered in Vendor Name 2. Vendor: John Smith Root Removal Owner: Leroy Jones SSN: 123-45-6789 123 3rd Street 1) Madison, WI 53715 Vendor: Global Rental LLC EIN: 39-6549328 Owner: Ginger Smith (sole proprietor) SSN: 987-65-4321 894 9th Ave 2) Milwaukee, WI 53211 Vendor: ABC Company EIN:39-1234567 Owner: Rebecca Smith SSN: 654-12-3789 541 Smith St 3) Fremont, WI 54940 Paying Employees of Other Campuses • Communicate Policy with campus • Now have a unique search tool, Employee Full Search. Select vendor classification of Employee. Vendor Name2/Withholding Name2 • 1099 Issue in 2009 – Misunderstanding of Name1 and Name2 – Problems with programming – Names had to be fixed – New rules • 1. Use Withholding Name1 and Withholding Name2, if Withholding Name2 is not populated, stop. If Withholding Name1 is not populated, use Name1. • 2. Use Name1and Name2, if Name2 is not populated, stop. Vendor Name 1 and Name2 Bad Example - In this case, vendor Name1 is individual name but tax id is an FEIN. 1099 name is combination of individual name and business name. Vendor Name 1 and Name 2 Vendor Name 1 and Name 2 In this example – can not be sure without the W-9 – but the vendor is entered as an individual/sole proprietor with an FEIN and Withholding Control name of HLIN but 1099 name is Leaning Pine Native Landscapes. Vendor Cleansing • There is currently no system policy • Recommendations 1. Inactivate vendors with no vouchers in the last 3 – 5 years 2. Request new W-9 periodically (3 to 5 year rotation) especially withholding vendors • Vendor cleanup may become more important because: – “Beginning in 2012, under a little discussed mandate of the health care reform legislation, businesses will be required to report all payments in excess of $600 for services or merchandise to the Internal Revenue Service on a Form 1099.” --- Accountingweb.com – Legislation is being proposed to repeal this provision WT-11 • Wisc DOR publication 508 http://www.revenue.wi.gov/pubs/pb508.pdf • Stage and real name of nonresident entertainer doing business in Wisconsin • Include SSN if individual or EIN for partnership or corporation – No SSN, still required to withhold • Will delay “matching” when nonresident tax return is filed • File within 5 days after the performance • Do NOT send a copy to UWSA TAX • IRS Vendor Name / TIN Mismatches • 1099 Reporting – Entertainer Tax – 1099-MISC cleanup • Paying Vendors with Tax Levies • Payment / Tax Reporting of Legal Settlements • 1042S Non-Resident Alien Reporting IRS Name/TIN Mismatch •B Notices (Per IRS Publication 1281) •28% Back-up Withholding •File on UW System Administration secure Net Storage site. Please contact your Controller’s Office for access and login information. •IRS e-services on-line name / TIN matching program •Registration steps • Apply at http://www.irs.gov/ • UWSA adds campus rep under UW EIN Sample Interactive Matching Request Page Results Page (returned instantly) 1099 Reporting • 1099-MISC Form and Associated Instructions: – Form: • http://www.irs.gov/pub/irs-pdf/f1099msc.pdf – Instructions: • http://www.irs.gov/pub/irs-pdf/i1099msc.pdf • UW-Madison Tax Information Web Page http://www.bussvc.wisc.edu/acct/tax.html 1099 for Entertainer Tax • Enter name of whoever the check is issued to • Likely to be Agent – Agent, acting as nominee/middleman, will in turn, issue 1099 to Nonresident Entertainer less Agent share, also without State Tax Withheld box completed • 1099 equals amount of fee for service – Do not include travel reimbursement accounted to the campus or direct billed from 3rd party vendor • Do not enter WT-11 estimated tax (withheld) amount in State Tax Withheld box 16 1099-MISC Cleanup • Add or Update Records in the Tax database bolt-on – Adding 1099-MISC records: • Navigate to “Add a New Value.” • Enter Tax Year, Tax ID, Payment Date, Taxpayer Name, and Business Unit. – Update an Existing 1099-Misc: • Navigate to “Find an Existing Value.” • Enter the Tax Year. • Enter any known information to search. New Levy Procedures • Vendor Levies are one time levies so no levy list is maintained • When UWSA receives a levy they: • Check 1099 detail record to see when vendor was last paid and by what campus • If an individual, check to see that the individual is not currently an employee • Check SFS to see if any recent payments have been made • Email campuses to see if there are any outstanding invoices or check not mailed New Levy Procedures (cont.) • If no payments are due, UWSA will complete the levy and return to the IRS • If payments are due, UWSA will fax a copy of the levy to the campus to be enclosed with the invoice and a note to the vendor stating we have received this levy and are forwarding the payment of this invoice to the IRS. The campus will then issue a check payable to the United States Treasury and forward the check to UWSA, Attn Levy Accountant. UWSA will complete the levy and send the check to the IRS. “For income other than wages and salaries and benefit and retirement income …, this levy is effective only for funds you owe the taxpayer now.” -- Levy instructions on Part 1 of the Levy notice Withholding, Tax Levies, Entertainer Tax, 1042S and Creating a Voucher with Split Payments for Deducted Tax IRS Tax Levies Type of Withholding Pay to and Additional Information send tax W/H check and/or forms to IRS Tax Levies Check Payable to U S Treasury Vendor Levies are one time levies so no levy list is maintained. Send the check to UW-System When UWSA receives a levy they: Attn: Levy Accountant Check 1099 detail to see when vendor was last paid. If an individual, check that they are not currently an employee. Check SFS for recent payments. Email campuses to see if there are outstanding invoices or checks not mailed. If no payments are due, UWSA will complete the levy and return to the IRS. If payments are due, UWSA faxes copy of levy to campus to be enclosed with the invoice and a note to the vendor stating we are forwarding payment of the invoice to IRS. Campus issues check payable to US Treasury and forward to UWSA, Attn Levy Accountant. UWSA completes levy and sends check to the IRS. 28% IRS Back-up Withholding Type of Withholding Pay to and Additional Information send tax W/H check and/or forms to 28% IRS Back-up Withholding Check Payable to UW-System manages all payments to when vendor will not supply a UW-System the IRS. Be sure to include vendor Tax Identification Number information. All Vendors must be Send the check to UW-System Attn: Tax Accountant marked withholding and we must issue a 1099-MISC. IRS Link: http://www.irs.gov/govt/fslg/article/0, ,id=110339,00.html The UW Tax Information web page at http://www.bussvc.wisc.edu/acct/tax. html has the UW Backup Withholding (28%) for Payments to U.S. Tax Residents procedure. This Tax Information web page has more easily understood specific information for campus users 1042S Type of Withholding Pay to and Additional Information send tax W/H check and/or forms to 1042S Check Payable to UW-System manages all payments to the Non-Resident Alien (NRA) UW-System IRS. Be sure to include vendor payments information when sending a payment for Send the 1042S worksheet and the taxes withheld to UW-System. Follow check for NRA tax deduction to UW- instructions on the Tax Information web Madison, Attn: Jose Carus, Jr. page at http://www.bussvc.wisc.edu/acct/tax.html under the flowchart in the How-To section. This flowchart will guide you through (1) what documentation is required for payments to NRA’s, (2) what taxes are applicable if no tax treaties exist between the U.S. and the NRA’s country of residence for tax purposes, and (3) if a tax treaty exists then what forms are required to take advantage of the tax treaty. UW-System must report all payments made to NRA’s. See The UW Tax Information web page at http://www.bussvc.wisc.edu/acct/tax.html under Year End Tax Reporting/Responsibilities. Wisconsin Entertainer Tax Type of Withholding Pay to and Additional Information send tax W/H check and/or forms to Wisconsin Check Payable to and send check to Institutions must deduct 6% of payments to Non-Resident WI DOR with a completed WT-11. nonresident entertainers if accumulated Entertainer Tax (Do not send a copy to UWSA.) payments for entertainment services exceed $3,200 (including travel reimbursements) in a calendar year and the entertainer has not filed WT-11 with a surety bond or cash deposit, or provided a waiver from the Department of Revenue. Each institution must institute a procedure for accumulating payments to nonresident entertainers to determine if the $3,200 limit has been reached. The 6% tax deduction must be sent to the Department of Revenue with a completed WT- 11 and a copy of the WT-11 must also be sent to UW-System. The WT-11 and instructions are located at http://www.revenue.wi.gov/forms/with/w- 011.pdf. See Appendix 4 for additional information. The status of the Payee (Entertaine r or Agent) determines if the payee also must be set up for withholding and will also receive a 1099. Voucher with a Split Payment Enter voucher as usual. Then go to Payment tab to split the payment. Voucher with Split Payment Add another payment pane Voucher with Split Payment Payment / Taxation of Legal Settlements • Federal Tax News article July/August 2009 – Step 1: Determine character of payment and nature of claim. – Step 2: Determine whether payment constitutes item of gross income. – Step 3: Determine whether payment is wages for FICA and income tax withholding purposes. – Step 4: Determine appropriate reporting for payment and any attorney’s fees that may be paid to or on behalf of employee. • http://www.irs.gov/pub/lanoa/pmta2009-035.pdf Payment / Taxation of Legal Settlements Payment / Taxation of Legal Settlements Non-Resident Alien (NRA) • Three (3) most important things to remember when dealing with Nonresident Aliens (NRA’s): – Proper planning, asking questions, and research are the most important things to remember to do before inviting an NRA to your campus. Note: Campus personnel have a tendency of inviting people before asking the business office about requirement for NRA’s. Educating, training, and informing your campus personnel on NRA requirements are critical so your campus does not invite someone that we cannot pay. Non-Resident Alien (NRA) • The Visa status of the NRA on their current trip to the U.S. regulates what can and can’t be paid to the visitor. • Keep track of information to payments to NRA’s. This is needed for reporting NRA income at calendar year end for tax reporting purposes. Non-Resident Alien (NRA) Resources Available to Address Nonresident Alien (NRA) Issues • University of Wisconsin-Madison Tax Information web page: • http://www.bussvc.wisc.edu/acct/tax.html Tax Information Web Page • This web page is meant to address items that are important to campuses and departments. Comments are always welcomed so that this is a useful tool for you and your campus to use. • For payments to NRA’s the most important link on the Tax Information web page is the first link in the How-To section labeled Determine Which Tax Related Documents are Required When Making Non-Payroll Payments at UW-Madison. If you had only one document this would be the one you would want! Non-Resident Alien (NRA) • 1042-MISC Form and Associated Instructions: Form: http://www.irs.gov/pub/irs-pdf/f1042s.pdf Instructions: http://www.irs.gov/pub/irs-pdf/i1042s.pdf • Tax Reportable Transaction Listing: http://www.bussvc.wisc.edu/acct/tax/1099tax.pdf • Scholarships/Fellowships (Account Codes 57xx): Reporting for U.S. Residents: Not Required on 1099-MISC Reporting for Non-Resident Aliens (NRA’s): Report on 1042-S Form • Keeping track of and identifying 1099-MISC vs. 1042-S Transactions on SFS and SFS Tax Table. Non-Resident Alien (NRA) • Do we take out both Federal and State Taxes for NRA’s? No, with one exception. This exception is that we must withhold Federal Taxes and the 6% required if the NRA is also a Non- Resident of Wisconsin Entertainer. For these, we take out both Federal taxes and if required to complete a WT-11, then we must also take out the 6% tax required by DOR on the WT-11. • Federal Tax Rates for NRA Transactions: Services = 30% Scholarships/Fellowships = 14% Prizes/Awards = 30% Royalties = Based IRS Publication 901, Table 1 Other Income = 30% Non-Resident Alien (NRA) Cleanup • During the year SFS users must mark all Tax Reportable Transactions as Withholding (Must mark both the Vendor and the Transaction as Withholding for the transaction to be downloaded to the SFS Tax Table for 1099-MISC and 1042-S Reporting). • Once the SFS Withholding transactions are downloaded at the end of each calendar year, users will receive an e-mail asking them to go into the SFS Tax Table and change the designation of all Non-Resident Alien tax reportable transactions from 1099-MISC to 1042-S. • After changing the designation the users are also required to complete the 1042-S screen of the SFS Tax Table for each transaction. Important Notes: Users must keep track of and be able to identify the NRA transactions and relevant 1042-S required information because SFS does not. The amount report on the 1099 panel should be the total gross amount including the federal and/or state tax withheld. Then on the 1042S panel the Federal and/or State tax amounts are recorded. Contacts • 1099-MISC Reporting: Bryan Peters, Eric Engbloom, Janet Larson • 1099-MISC Cleanup: Bryan Peters, Eric Engbloom, Janet Larson • W-2 Reporting: Janet Larson, Bryan Peters, Eric Engbloom • W-2 Cleanup: Janet Larson, Bryan Peters, Eric Engbloom • Moving Expense Reporting: Eric Engbloom • Support Org / Foundation Reporting: Eric Engbloom • Value Added Tax: Terri Gill • Tax Levies: Bryan Peters • Entertainer Tax: Bryan Peters, Eric Engbloom • Non-Resident Entertainer Reporting: Bryan Peters, Eric Engbloom • Non-Resident Entertainer Cleanup: Bryan Peters, Eric Engbloom Contacts • Jose A. Carus, Jr. (UW Madison, Tax Compliance Manager, firstname.lastname@example.org) • Eric Engbloom (UW System Administration, Accountant Advanced, email@example.com) • Terri Gill (UW System Administration, Accountant/Systemwide Policies/Travel, firstname.lastname@example.org) • Ginger Hintz (UW System Administration, Financial Reporting Director, email@example.com) • Janet Larson (UW System Administration, Accountant Advanced, firstname.lastname@example.org) • Bryan Peters (UW System Administration, Accountant Advanced, email@example.com) WISDM WISDM - Help Help – reference documentation on-line WISDM - Voucher Search WISDM - Voucher Search WISDM – PO Search WISDM – PO Search WISDM Enhancements • PO Display Buyer Name instead of Buyer ID • Vendor – W9 on file available at vendor search (coming soon) • Image Now link for Invoice images – working with UW- Stout. Opportunity to allow other campuses to also use this functionality. WISDM • Questions? • Comments on WISDM Help. • What other training would be useful?
Pages to are hidden for
"Template 1099 Misc - PowerPoint"Please download to view full document