Where are Disbursements Made?
Invoices, Check Requests & Reimbursements
Disbursements made for university business services will generally be processed by either the Accounts Payable Department or the Bursar's Office. The Accounts Payable Department processes all invoices and check requests and the Bursar's Office provides all petty cash reimbursements. The Purchasing Department, though not directly involved in the disbursement process, creates all purchase orders by which many of the university's goods and services are obtained. The invoices generated through the processing of these purchase orders are then paid by the Accounts Payable Department.
Payments to Students & Employees
It is extremely important that any payment for work done by a student or employee of the university be processed through Payroll rather than through Accounts Payable. Failure to properly report these individuals as employees and remitting the appropriate portion of employer's tax puts the university and the individual at risk of incurring severe financial penalties from the IRS. If you are unsure as to the proper handling of payments to be made to an individual please contact the Human Resources department.
Honoraria, Stipends & Fees for Services Rendered
Payments to individuals (other than university students and employees) and other qualifying organizations for services rendered are processed by check request or invoice in the Accounts Payable department. Payments made in excess of $600.00 to qualifying recipients are reported annually to the IRS on form 1099. Some examples of 1099 reportable income include fees, stipends, honorariums and awards. In order to process these payments the Accounts Payable office must be provided with the individual's social security or TIN number, along with a valid home address. Valid TINs or social security numbers and addresses must also be provided by sole proprietorships, partnerships, and law firms providing services to Loyola. If the filing status of the individual or business is uncertain, a W-9 form should be completed and submitted to the Accounts Payable Department along with the check request. In accordance with IRS regulations, Loyola does have the right to institute back-up withholdings on payments when deemed necessary.
Payments to non-resident alien individuals for services rendered are also processed in the Accounts Payable department. All payments to non-resident alien individuals may be subject to 30% back-up withholding. If an individual wishes to claim applicable tax treaty benefits which will exempt him or her from back-up withholding, the individual must submit a completed Form 8233 to the Accounts Payable office along with the request for payment. The individual must also have a valid U.S. individual tax identification number. Responsibility for acquiring a tax identification number is the responsibility of the payee. Payments to individuals wishing to claim treaty benefits require at least 15 working days for processing payments, to insure verification from the IRS. Payments to individuals who choose not to claim tax treaty benefits must submit a completed Form W-8BEN in order for a payment to be processed. Payments to these individuals will be subject to withholding and require a 3-4 day processing time.
