Office of Procedures, Records, and Forms Business Policies and Procedures Manual

FINANCE
30.30
Revised 11-21

For more information contact:
   Payment Services
   509-335-2060

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Nonservice Pay Authorization

Forms:

Nonservice Pay Authorization


Overview

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.
Use

Nonservice pay typically includes payments for fellowships, traineeships, internships, and other nonservice programs.

Questions

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 Payment Services in the Controller’s Office. 

Process Summary

The University department prepares a Nonservice Pay Authorization form to establish the disbursement contract. The department retains the Nonservice Pay Authorization for documentation.

Routing

The department submits the Create Supplier Request task in Workday to establish a payee (e.g., supplier, external committee member). NOTE: A Funds Transfer Authorization form must be completed for electronic disbursement. See BPPM 95.21.

A Create Supplier Invoice Request task initiates the workflow for each payment in Workday. See the Workday How Do I Create a Nonservice Payment reference guide for instructions.

Taxability

In accordance with IRS regulations, the University does not complete or send recipients copies of 1099-Misc tax forms. For nonservice payments to non-U.S. citizens, the IRS requires the University to complete and send the 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) tax form to recipients. See the Workday How Do I Create a Nonservice Payment reference guide for instructions.

Records Retention and Disposition

Completed Nonservice Pay Authorization forms contain personally identifiable information (PII). Departments must ensure the protection of the records during the retention period and reduce the documents to an illegible condition at destruction. See BPPM 90.01 and 90.05 regarding University records retention and disposition requirements and management of confidential records.

Nonservice Pay Authorization Form

Form Supplies

The Nonservice Pay Authorization form is available in PDF format on the Procedures, Records, and Forms (PR&F) website.

Completion Instructions

The following instructions reference the sample in Figure 1. Sections not described are considered self-explanatory.

Figure 1
Department Control Number (Optional) and Date

The department may enter a sequential departmental control number, which is a reference number for the documented transaction. The department must enter the date the form is prepared.

Electronic Funds Transfer

Indicate whether or not the payment is to be provided by electronic disbursement. (See BPPM 95.21 and the Workday Payment Elections reference guide.)

Name

Enter the payee’s name using coding conventions in BPPM 90.75.

Remit
Payments are remitted according to the information in the payee’s current Workday record.

Revision
If the payee contact information is changed, the department must complete a Create Request for Supplier Change task in Workday. (See the Workday Create Request for Supplier Change reference guide for instructions.)

Other Information

Include the payee’s Workday Supplier ID, if applicable. The payee’s WSU identification number is optional.

Indicate whether or not the payee is a U.S. citizen. If not a U.S. citizen, indicate:

  • Visa type
  • Country of citizenship
  • Date of birth
Action Requested

Check the applicable action. NOTE: Each payment action requires a separate Nonservice Pay Authorization form.

Begin
Authorizes nonservice payments to a payee.

End
Stops a Nonservice Pay Authorization before the final date of the disbursement contract. Contact Payment Services to ensure termination of funds transferred to payee.

Other
Specify any other communication or action requested in the Comments block.

Dates Authorized

Specify the dates of this authorization. Prepare a separate form for each year if the fellowship, internship, or traineeship is for more than one year.

Amount Authorized

Indicate the amount authorized for the specified period.

Department Name

Specify the department administratively responsible for the program.

Disbursement Plan

Prepare a disbursement plan for the period. Include the account worktags, the amounts to be disbursed, the disbursement period, and disbursement dates.

NOTE: Nonservice pay disbursements are allowed with FN017 and FN057 funds only.

Actual Expense
See the Workday Create Expense Report reference guide for instructions.

Limits
Specify any limits on the expenditure.

Disbursement Date
The disbursement date is the first working day of the month. 

Contact Employee

Specify someone who can answer questions about the action including a telephone number and e-mail address (required).

Authorization

Departments and colleges may require that chairs, deans, or directors approve Nonservice Pay Authorizations.

Disbursement

In Workday submit the Nonservice Pay Authorization using the Create Supplier Invoice Request task by the 25th of the month for disbursement on or before the middle of the following month. NOTE: The payee must be established as a Workday supplier or external committee member prior to disbursement.

The University department prepares and submits a Create Request for Supplier Change and a Create Supplier Invoice Request task to set or change the disbursement. (See the Workday Create Supplier Invoice Request reference guide.) 

Series of Payments

A single payment installment is established by using a Create Supplier Invoice Request each month. The University department is responsible for recovery of incorrect payments.