Finance Forum Presentation - Payroll and ETF

Sherry Willis, Payroll, presented on employee Moving and Relocation (AACP Module 1.4) and Honorariums (AACP Module 7.4). Moving and Relocation expenses are provided to a new hire at the discretion of the hiring department as these expenses will be incurred by the department. A Moving & Relocation form must be submitted to Payroll before M&R expenses are incurred by the new hire. Certain M&R expenses are taxable at 25%. Lawrence Transportation Systems and Armstrong Relocation are JMU’s two preferred movers. There is a three bid requirement for third party movers (unless using a preferred mover). Car rental expenses are reimbursable for house hunting purposes only. All reimbursements for lodging and meals must follow state regulations and cannot exceed the rates set forth in the M&IE tables established by the Commonwealth. Itemized receipts are required for reimbursement!

Special withholding rules apply to wages paid to foreign nationals who are non-residents. Other U.S. source income payments made to foreign nationals, including payments for self-employment services, are subject to 30% withholding tax unless an exception applies. Non resident alien employees are required to complete an I-9 and submit to the Office of International Faculty and Student Services (contact Gina Kudrav or Delores Blough). Contact Sherry for tax analysis for non resident alien employees. If no tax treaty is applicable, special withholding rules will be dictated by the IRS.

Sherry also spoke about payments to short term foreign national visitors. The most common types that allow compensation and/or honorariums are B1, B2, WB, WT, and J-1. Please note that B1, B2, WT, and WB subject to 9-5-6 rule (visit is less than 9 days at JMU, the individual has not received more than 5 payments from educational or research institutions in the previous 6 month period). The J-1 type is subject to sponsor’s approval. Certain visa types are ineligible to receive payments (including travel reimbursements)! You must get authorization from Payroll before making arrangements and contracting to pay a foreign national visitor! Fore more information, you can visit www.jmu.edu/payroll/ for more information.

Kathy Seal, Accounting Services Technology, gave a presentation on Equipment Trust Fund (ETF). Kathy gave the workflow process of how ETF and the various offices on campus that work to provide departments with free money for equipment. ETF can only be used to purchase equipment that costs at least $500 and is directly related to academics. ETF will cover freight charges if and only if they are included in the price of the equipment. Supplies essential for set-up or to make the equipment functional may be purchased, but no extra supplies. Structural changes to buildings are not covered by ETF. If you have insufficient ETF funds to cover the entire cost of your requisition, it can be split funded with departmental or grant funds. If split funding with grant funds, the requisition will flow to Grant Accounting for approval. ETF will not cover the 2% eVA transaction fee. Point-of-sale purchases for ETF equipment are not acceptable. A requisition created in eVA is required for all ETF equipment EXCEPT for Dell bulk orders. For more information, you can visit: www.jmu.edu/acctgserv/etf.shtml.