Accounts Payable Nonservice Pay Authorization

Nonservice Pay Authorization

What is a Nonservice Pay Authorization?

A nonservice pay authorization authorizes monthly disbursements to individuals who are not obligated to provide services to WSU in exchange for payments.  Typical recipients of nonservice pay include fellowships, traineeships, internships and other nonservice programs. Nonservice pays are supported by accounts in programs 11-14 and 17A (see BPPM 30.30) and processed on object/subobject 08-BA.

  • University officials may not require services in exchange for nonservice disbursements.
  • Recipients may not have a related employment relationship with the University while receiving nonservice payments.
  • Recipients may not teach credit courses or receive WSU benefits in exchange for nonservice pay.
  • Individuals with service responsibilities to the University should be appointed as University employees. Such individuals are not to receive nonservice pay for personal services provided to the University.
  • Nonservice Pay Authorizations may not be used to process student scholarships. See BPPM 30.90 for departmental scholarship procedures.

Processing Nonservice Pay Authorizations

The department is responsible for preparing a nonservice pay authorization form and establishing the payment schedule (see BPPM 30.30.6).   The disbursement date for nonservice pay is the first working day of the month.  This may be a prepayment or a payment for the previous month.

Complete the following steps when preparing the nonservice pay authorization form:

  • Complete departmental contact information
  • Indicate the recipient’s name, address, citizenship status and WSU ID# (if the individual does not have a WSU ID#, provide his/her Social Security Number)
    • For Non U.S. Citizens: indicate Visa Type, Country of Citizenship and DOB
  • Obtain recipient’s signature
  • Amount and dates authorized (not to exceed one year)
  • Under “comments”, include a brief description of the purpose of the nonservice pay
  • Complete “Disbursement Plan”
    • Disbursements are made each month by the first working day of the month
      Submit forms to Accounts Payable by the 15th of the month for a first-of-the-month disbursement
    • Break down disbursements by month (not full award amount)
  • Obtain expenditure authority signature.  (Departments and colleges may require that chairs, deans, or directors approve Nonservice Pay Authorizations. This is not a University requirement.)
  • Submit original form to Accounts Payable for processing

Federal Withholding Tax or Social Security Tax

  • Nonservice pay authorization payments are not subject to federal withholding tax or social security tax.  The recipient may be liable for federal or state income tax on these funds.

Payments to Nonresident Aliens

  • Nonservice pay authorizations payments made to nonresident aliens are reported as income to the IRS tax form 1042S.  For assistance in determining the recipient’s residency status, see Payroll website.

Direct Deposit

Nonservice pay authorization recipients may authorize Accounts Payable to deposit his/her payment in any U.S. bank which is a member of an automated clearing house (ACH). See BPPM 95.21.

Note: To enroll in Accounts Payable/Travel Services Direct Deposit, click here.    Accounts Payable direct deposit is separate than Payroll Services and Student Accounts.