ACCOUNTS PAYABLE

Financial policy promotes the proper stewardship and general guidelines for the appropriate and legal uses of LUC funds. The University receives, from a variety of sources, funds that carry with them certain fiduciary responsibilities. Inherent in these responsibilities is the requirement to operate the institution under guidance set forth by the Board of Trustees, to follow Generally Accepted Accounting Principles (GAAP), and to comply with all federal, state, and local rules and regulations, while supporting the University's mission. It is also important to note that the policies adopted by the university are meant to be the criteria which departments must minimally abide. Departments may elect to establish internal policy and procedure that is more restrictive that these established policies. At no time can internal policy be less restrictive. A WORD ON POLICY

Used for one time, smaller dollar purchases and/or payment of goods and services: Conference fees and registrations Membership dues Professional services Periodicals or subscriptions Awards, honorariums or stipends Note this list to be representative and not inclusive. Require a W-9 for ALL non-out-of-pocket transactions to U.S vendors. Payment will not be released without a W-9. All foreign payees require W-8 forms. Will not pay from statement or quotes. We require all detailed invoices to make a payment. Only pay current charges on invoices. Must have appropriate approvals from authorized faculty or staff. CHECK REQUISITION

University Standard - $25 documentation/substantiation requirement. – Exception: We require detailed documentation for lodging and cellular telephone expenses regardless of the dollar amount. Current mileage reimbursement rate: ( – $ per mile for January 1, 2015 through December 31, Per diem limits for the reimbursement of personal MEALS ONLY as defined by the Federal Government for domestic and foreign and travel. – Recommend using the excel files with established rate breakdowns. Travel advances must be substantiated within 15 business day of the return from an event. Proper approvals must be included with submission of a request. Under no circumstances should a subordinate approve the request of a superior even if that subordinate has budgetary signature authority on an accounting unit. Caution, please refer to normal purchasing procedures when purchasing goods or services. Purchases should not be made out of pocket to circumvent normal purchasing procedures. EXPENSE REIMBURSEMENT

Who exercises behavioral control? – Instruction, training, evaluation Who exercises financial control? – Equipment, expenses, public services What is the relationship of the worker and Loyola University? – Pay benefits, written agreement, core business services EMPLOYEES VS. INDEPENDENT CONTRACTORS

Based upon the finding of the review, an individual classified as an employee will be set up as such in Human Resources. The employee will track his or her hours in the Kronos Time and Attendance System, receive payments, including proper tax withholdings, through Payroll Services and they will receive a W-2 for their earnings. Under an employer and employee relationship, the employer must withhold all applicable income tax and the employer’s portion of social security and Medicare taxes. LUC is also required to pay a portion of the Social security, Medicare and unemployment taxes on these wages. Employees are issued W-2, Wage and Tax Statements, detailing all taxes withheld from wages. Employees may also deduct unreimbursed business related expenses on Schedule A of their income tax return. Under the LUC accountable plan, employees are able to request reimbursement for all travel and business related expenses (see Travel and Business Expense Policy EMPLOYEES

If the individual is deemed to be an Independent Contractor, they will be set up in the Accounts Payable vendor master. Payments will not be made without ALL required documentation including a certified FORM W-9 or W-8 and Independent Contract Review Form. Accounts Payable will not withhold taxes from payments made. All amounts exceeding $600 for a given calendar year will be reported to the IRS on Form 1099-MISC. Independent Contractors are responsible for paying their own income and self-employment taxes and may deduct business related expenses on Schedule C of their income tax return. INDEPENDENT CONTRACTORS

Prizes and Awards Honorarium/Stipend Fellowship Travel Grants STUDENT PAYMENTS: INCLUDABLE IN STUDENT INCOME

Prizes & Awards- Prizes and awards are payments in recognition of charitable, scientific, educational, artistic, literary, or civic achievement, or are received as the result of entering a contest. Recipients are selected based on their actions to enter a contest, competition or proceeding. Honorarium/Stipend- One time payment for services performed unrelated to student employment. Under no circumstances should stipends be requested for student employment. PAYMENTS TO STUDENTS

Fellowships- Amount paid to an individual to aid in the pursuit of study or research. No past, present, or future services are expected in return for the support given. If services are required, the fellowship is considered wages. Travel Grant- Funding given to a student to attend a conference that is primarily for the student’s benefit. Scholarships- payment for qualified educational expenses such as tuition and fees. Not paid via AP. PAYMENTS TO STUDENTS

Teaching- Requires student to perform services in exchange for payment. Paid via HR and reported on Form W-2. Independent Research- Primary purpose of the research is to further the education and training of the student in his/her individual capacity. LUC does not control the research, student has the ability to direct and control the research. Paid through AP and self reported by student. TYPES OF FELLOWSHIPS

Guided Research- Research under the direct supervision of LUC that primarily benefits LUC. LUC has control over the research and will use the results of the research. For example, student research that is supervised by a faculty member or a requirement that a student perform research for a specified amount of hours per week. Paid through HR and reported on Form W-2. No Service Requirement- Payment to support studies or provide living expenses. Paid through AP and self reported by student.

The “Tax Information Certificate - Student Payments” must accompany all student payment requests along with check requisition form and W9 The Tax Information Certificate should be completed by the department, not the student Form can be found at: rstudentpayments/ TAX INFORMATION CERTIFICATE

Online Forms – Policy – Important Links – – RESOURCES

LaShonda Smith Manager Accounts Payable Department Lewis Tower– 603 Extension Alex Kormos Senior Analyst Accounts Payable Department Lewis Tower -602 Extension CONTACT INFORMATION