WSU Payment Types
Find below the various payment types processed by Washington State University
For the purposes of this policy, an award is a cash equivalent given, usually to an employee or student, in recognition of past accomplishments. The recipient has made no formal entry or submission and the recipient did not undertake the recognized activity primarily for the financial benefit of the award (see Prize below).
Departments are to charge employee awards to spend category code SC0089 (Recognition Awards). Departments are to charge student awards to SC00297 (Awards).
For the purposes of this policy, a business gift is a cash equivalent given to an individual to express gratitude or appreciation for support of the University’s mission. The recipient performed no service nor provided other consideration in exchange for the gift.
Departments are to charge business gifts to spend category code SC0089 (Recognition Awards).
Cash equivalents are stored-value products such as gift certificates and gift cards. The IRS specifically defines these instruments as cash equivalents and states that their value is considered taxable income to the recipient, regardless of dollar value.
Gift Card or Gift Certificate
A gift card or gift certificate entitles the recipient to receive goods or services of a specified value from the issuer.
For the purposes of this policy, a prize is a cash equivalent presented as a result of participation in a contest, drawing, or judged competition (see Award above).
Departments are to charge all prizes to spend category code SC0150 (Prizes).
Research Participant Payment
For the purposes of this policy, a research participant payment is a cash equivalent offered to an individual (including a study subject) as incentive to participate in a research study.
Departments are to charge research participant payments to spend category code SC0124 (Research Subjects).
A Substitute W-9 is a form the IRS allows as a substitute for IRS Form W-9. WSU uses the Record of Distribution and Request for Taxpayer Number and Certification (Substitute W-9). (See BPPM 45.53).
University personnel are to use cash equivalents in only the circumstances outlined in the Allowable Uses of Cash Equivalents table.
ALLOWABLE USES OF CASH EQUIVALENTS
Allowable uses of cash equivalents and appropriate funding sources are presented in the table below. No other use of gift cards or other cash equivalents is authorized without the Controller’s specific, written approval in advance of the purchase of the cards.
|Use||Spend Category||Appropriated Funds|
FD001, FD087, FD025, FD068, FD069, FD070, FD071, FD072, FD073, FD122, FD035, FD036, FD037, FD038, FD039, FD040, FD041, FD042, FD085, FD076, FD078
FD095, FD049, FD089, FD050, FD051
FD043, FD044, FD045, FD046, FD085, FD047, FD048
FD026, FD080, FD053, FD050, FD098, FD054, FD088
FD077, FD055, FD060, FD056, FD057, FD058, FD115, FD105, FD106, FD107, FD108, FD109, FD116, FD115, FD061, FD053, FD062, FD105, FD033, FD110, FD063, FD111, FD112
|Research participant incentive payments (See BPPM 45.53.)||SC00124|
|No, except in conjunction with functions FN013, FN014, FN015 institutional research.||Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent.||Yes, but only where human study subjects are an integral part of the research, incentive payment is included as a line item on the project budget and Sponsored Programs has approved in advance.||No, except fund FD026 in conjunction with functions FN013, FN014, FN015 institutional research.||No|
|Awards in recognition of student accomplishment or contribution;|
Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent.
|No||Yes, but only where awards or prizes are an integral part of the program mission and included in the approved program budget.||Yes, but only where awards or prizes are an integral part of the program mission.|
|Awards in recognition of employee accomplishment or contribution||SC0089 (Recognition Awards)||Yes, but only in strict accordance with BPPM 55.56.||Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent.||No||Yes, but only where awards or prizes are an integral part of the program mission and included in the approved program budget.||Yes, but only where awards or prizes are an integral part of the program mission.|
|Incentive for participation in a WSU sponsored activity;|
Payments to students for participation in student surveys
|SC0124 (Research Subjects)||No||Yes, but only where such use is in accordance with the organizational mission, gift use agreement, and donor intent.||No||Yes, but only where incentives are an integral part of the program mission and included in the approved program budget.||Yes, but only where incentives are vital to achieve the program mission.|
Please see BPPM 70.44 for additional information.
DEFINITION OF CASH EQUIVALENTS
Cash equivalents are stored-value products such as gift certificates and gift cards. The IRS specifically defines these instruments as cash equivalents and states that their value is considered taxable income to the recipient, regardless of dollar value. See IRS.
DEFINITION OF PRIZES
A prize is a cash equivalent presented as a result of participation in a contest, drawing or judged competition. Prizes should be expensed to Spend Category SC00150 (Prizes).
DEFINITION OF AWARDS
An award is a cash equivalent given, usually to an employee or student, in recognition of past accomplishments. The recipient has made no formal entry or submission and the recipient did not undertaken the recognized activity primarily for the financial benefit of the award. Awards should be expensed to Spend Category SC00297 (Awards).
DEFINITION OF BUSINESS GIFT
A business gift is a cash equivalent given to an individual to express gratitude or appreciation for support of the University’s mission. The recipient performed no service nor provided other consideration in exchange for the gift. Business gifts should be charged to Spend Category SC000089 (Recognition Awards).
IRS regards gift cards as cash equivalents which creates tax and reporting implications for both the recipient and the University. When gift card distribution occurs, it is important for the protection of the recipient, department personnel, and WSU that the appropriate tax reporting processes are followed, see BPPM 70.44.
WSU has authorized the use of Tango Card which supports purchase and distribution of a wide variety of gift cards online. There is no service fee. Departments may directly establish an account with the supplier and use the Purchasing Card for payment. For more information please visit https://www.tangocard.com.Please note: The department must maintain a distribution log for payments of cash, gift cards, and other cash equivalents. These records must be retained according to normal retention policies.
A cash advance is a specified cash sum issued to a staff or faculty member who purchases goods or services in circumstances that do not permit usual WSU purchasing procedures. A typical example would be funds for purchase of supplies while on a field project.
Cash advances, as documented in this section, are issued from accounts in Workday functions FN13-FN015 and FN017, and funds FD026, FD076, FD080, and FD094 only.
See also the Modernization OBIEE Crosswalk website.
OTHER TYPES OF FUNDS
WSU administrative units that require cash funds may wish to open a petty cash fund for making purchases (see BPPM 30.50) or a till cash fund for making change (see BPPM 30.51).
Travelers requiring a travel cash advance should follow procedures in BPPM 95.01 and 95.05.
Recipients of cash advances are expected to disburse WSU funds responsibly and carefully, making every effort to extract a fair value for expended dollars. In addition, all purchases are to be appropriate and in accordance with the policies and procedures of the state of Washington, WSU, and relevant award and contract sponsors’ terms, conditions, regulations, and applicable statutes.
WHO MAY APPLY
Only faculty and staff on the WSU payroll are eligible to apply for cash advances.
WHAT IS A WSU CONTRACT?
A contract is an agreement between WSU and another party creating obligations that are enforceable or otherwise recognizable at law. Contracts require detailed terms and conditions addressing each party’s responsibilities and the nature of the work involved. The agreement must be approved by appropriate University officials and signed by a University officer who has received written delegated authority from the Board of Regents or the President to sign such agreements (see BPPM 10.10).
All non-grant related WSU contracts are maintained in the Controller’s Office. Common examples of WSU contracts maintained in Accounts Payable are: installment purchases, leases, rentals, maintenance agreements, personal services or performance agreements.
INITIATING A WSU CONTRACT
Please see https://jira.esg.wsu.edu/servicedesk/customer/kb/view/156963274 for details/instructions
PROCESSING INVOICES ON A CONTRACT
Please see https://jira.esg.wsu.edu/servicedesk/customer/kb/view/160371550 for details.
EMPLOYEE REIMBURSEMENT PROCEDURES
If an employee pays for an item and seeks reimbursement, the department must follow the procedures below to process the reimbursement. The maximum allowed for an employee reimbursement is $5,000.
The department is not required to obtain prior approval from Purchasing Services for an employee reimbursement.
REQUESTING THE REIMBURSEMENT
To request employee reimbursement, the department must:
- Prepare a State of Washington Invoice Voucher (see BPPM 30.45). Itemize the product or service purchased. Include the following information:
- Itemize the product or service purchased,
- Include a detailed description of the circumstances that required the use of this exceptional procedure, and
- Conspicuously label the invoice voucher “Confirming Reimbursement.”
- Indicate the name, home address, and WSU ID number of the employee purchaser under Supplier or Claimant.
- Obtain the employee’s signature under Supplier’s Certificate.
- Obtain an authorized signature.
- If reimbursement exceeds $500:
- In academic departments, the chair, dean, or a responsible administrator above the dean indicates approval of the purchase by signing under Authorized Signature.
- In nonacademic departments, the director, area finance officer, or a responsible administrator above the director indicates approval of the purchase by signing under Authorized Signature.
- If reimbursement is $500 or below, the dean/director/chair, area finance administrator, expenditure authority, or a responsible administrator above the dean/director indicates approval of the purchase by signing under Authorized Signature.
- If reimbursement exceeds $500:
NOTE: A University employee may not authorize reimbursement to himself or herself. When the chair, dean, director, or area finance officer is seeking reimbursement, the invoice voucher must be signed by their supervisor.
If the expenditure is supported by an account in function FN057, include appropriate justification and approval (see BPPM 70.33).
- Attach the receipt, canceled check, bank card slip, bank card statement, or other record indicating that the employee paid the supplier.
- Submit the documents in Workday through the Expense Report. See the Workday Create Expense Report reference guide.
WHAT IS AN HONORARIUM?
An honorarium is a payment given to a professional person for which fees are not legally or traditionally required. Honorarium activities may include a speaking engagement, performance, lecture or competition judging. An honorarium payment is typically made on a one-time or non-routine basis to an individual as a “thank you” or gesture of appreciation.
Instructions to create an Honorarium payment can be found here. Taxpayer Identification NumberWSU is required to obtain the individual’s taxpayer identification number (SSNor EIN) to meet IRS reporting requirements. See IRS website.
PAYMENTS TO NONRESIDENT ALIENS
Honorarium paid to non-resident aliens are subject to tax withholding. 30% of the final payment will be withheld and directly remitted to the IRS and reportable on the 1042S Tax Form. For assistance in determining the recipient’s residency status, see Payroll website.
U.S. CITIZENSHIP AND IMMIGRATION SERVICES FEES
For each H-1B petition, your employer pays the fees to the U.S. Department of Homeland Security.
- Form I-129 Filing Fee: charged to H-1B petitions (change of status, change of employer, extension, amendment and concurrent employment)
- Fraud Prevention and Detection Fee: charged to a U.S. employer’s initial H-1B petition (change of status, change of employer, and concurrent employment). Does not apply to an H-1B extension or amendment petition.
IMPORTANT: Separate checks are required for each fee. Please complete separate invoice vouchers for each check. (see BPPM 30.45)
All checks are made payable to: U.S. Department of Homeland Security.
For more information about immigration services visit U.S. Citizenship and Immigration Services.
Nonservice Pay Authorization forms authorize disbursements to individuals who are not obligated to provide services to WSU in exchange for the payments.
- 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.
Nonservice pay typically includes payments for fellowships, traineeships, internships, and other nonservice programs.
Direct questions regarding nonservice pay to the appropriate dean or director. Direct questions regarding the appropriateness of nonservice pay to Human Resource Services.
Direct questions regarding nonservice pay procedures to the Accounts Payable Section of the Controller’s Office.
The submitting department prepares a Nonservice Pay Authorization form to establish the payment schedule.
For nonservice payments (e.g., stipend, honorarium, guest speaker, etc.)
Step 1: The department completes the “Create Supplier Request” business process in Workday to establish a supplier.
Step 2: After establishing the supplier, the department creates a “Create Supplier Invoice Request” and submits into Workday
Step 3: Repeat Monthly for duration of the agreement (except in the case on Honorariums)
Please see the Create and Change Purchase Order Reference Guide.
Please see BPPM 70.01 and BPPM 70.03 for further details.