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Direct Payment Request

The Direct Payment Request (DPR) is a multi-purpose form used to request disbursement and distribution of funds, replacing the former Check Request Form. A wide variety of payments for expenses and for goods and services may be requested through the DPR, with the exception of (1) items obtained via the purchase requisitioning system, (2) payments to be made through the payroll system, or (3) when an Employee Expense Report is applicable.

The DPR provides for enhanced tax and audit compliance and promotes efficiency for requestors. Instructions and attachment requirements, along with related forms needed for attachments, are provided for departmental information.

Form completion and supporting documentation instructions, which vary by Payee and Payment type, are indicated throughout the form.

Supplemental forms that may be required to support the DPR:

How to Prepare a Direct Payment Request

 

• Payee/Payment Type:

Using the DPR instruction form, select the Payee Type applicable to the requested disbursement. Next, select the appropriate payment type listed below the payee description. For a more detailed explanation of each payment type, including required supporting documentation, click on the specific payment type listed below.

Attorney/Legal Services & Settlements
Certified Sports Official
Dues/Subscriptions/Licenses
Emergency Purchases under $500
Expense Reimbursement (non-travel)
Medical Care Provider
Moving and Relocation Expense Reimbursement
Petty Cash Fund Reimbursement
Prize or Award
Professional Sole Entertainer (Under $1,000)
Professional Services less than $5000
Refund
Speaker/Lecture Fee
Subject Fee/Test Patient
Webinar Registration
U.S. Postmaster Postage

NOTE: Internal Revenue Service regulations impose specific tax withholding and/or informational reporting requirements on payments to employees, nonresident aliens, independent contractors, recipients of other income, individuals and corporations providing health and medical care services, and all providers of legal services. If you are authorizing a payment that is not listed above, contact Campus Financial Services before the purchase is made.

• Issue Check To:

Enter the payee's legal name exactly as it appears on any supporting documentation. The payee's permanent mailing address, typically home address, must be provided for tax reporting purposes. If the check should not be mailed to the address supplied, an addressed envelope must be attached.

• Taxpayer Identification Number:

Provide the social security number (SSN) or employer identification number (EIN) assigned by the Internal Revenue Service (IRS), as requested. According to IRS regulations, penalties apply if the taxpayer's identification number and name do not match Social Security records. IRS Form W-9 and LIU Independent Contractor and Substitute W-9 Form are available for your use to collect name and social security number information, and to provide protection to the University and recipient from penalties and additional taxes. Note: Nonresident aliens (NRAs) use LIU Nonresident Alien Information Form.

• Special Handling:

o Envelope Attached:

To have a check mailed to a location different from the payee's address noted on the DPR, check this box and attach an addressed envelope. In addition, an envelope should be attached if bulky enclosures must accompany the check.

o Enclosure:

If an enclosure is to be included in a window envelope with the disbursement, check this box and attach the original.

o Pick-Up/Inter-office:

All checks will routinely be mailed to the address shown on the DPR or the attached envelope unless extraordinary circumstances require that the check be held for pick up in the Bursar's Office or sent inter-office. If a check is to be held for pick up or sent inter-office rather than mailed, check appropriate box.

• Wire Transfer:

Check this box if a wire transfer to the payee's bank is required. A completed Wire Transfer Request Form must be attached.

• Check Stub Information:

Enter any additional information that should appear on the check stub to identify the disbursement to the recipient, such as invoice number or the individual within a company or organization to which the check should be directed. Up to thirty-five (35) characters may be used. Judicious use of this field may eliminate the need for enclosure(s).

• Explanation of Charges:

Provide any additional information that cannot be conveyed through use of the payee or payment type and check stub description fields, such as the purpose of the expenditure, dates of service, and the location where the service was performed, if off-campus. The business purpose of all expense reimbursements must be indicated in this section.

• Supporting Documentation:

In addition to sound business practices and audit guidelines, the University must comply with federal, state and local regulations regarding taxation and informational reporting. To comply with these standards and reporting requirements, original invoices and documentation as described for each payee/payment type identified above, must be submitted with the DPR. If the original is lost and payments must be supported by a copy, the copy must be so noted, dated, and signed by the requestor.

• ChartField(s) To Be Charged:

Indicate the eighteen-digit ChartField(s) to which the requested disbursement should be charged and the amount to be charged to each account. If more than three ChartFields are to be used, list all accounts and amounts on a ChartField Extension Form, attach it to the DPR, and enter the total amount in the space provided on the DPR.

• Requested By:

Enter the name of the individual requesting the expenditure and his/her e-mail address, department, building, room number and telephone number.

o Date Needed:

Enter the date the check is to be issued only if sooner or later than three working days after receipt in Accounts Payable. Allow sufficient advance time for required approvals. Please note that the date entered will be the date by which the check will be issued whenever possible. Please allow additional time for mailing if applicable.

• Approvals:

Obtain required approvals (Department Head, Project Director for Grants, and Deans or V.P.) and forward to the Campus Financial Services Department, University Center, Brookville, N.Y. 11548. Upon required approval, DPRs will be forwarded to Accounts Payable for processing.

 

Payment Types

 

Attorney/Legal Services & Settlements

Definition: Payments to attorneys and law firms (including corporations) for legal services and settlements.

Eligible Payee Type: Attorney/Legal Services and Settlements

Compliance Issues: All payments for legal services and settlements are reported to the IRS and recipient on IRS Form 1099-MISC.

Supporting Documentation: Original invoice and IRS Form W-9 (if not on file). Settlement must have SSN or EIN of payee.

Certified Sport Official Fees

Definition: Payments to non-employees to officiate a sport. Payments to employees to officiate a sport must be processed for payment through the Payroll system.

Eligible Payee Types:

Nonresident Alien (Non-Employees)
Non-Employee

Compliance Issues:

Payments for certified sport official fees paid to a non-employee U.S. individual and processed via a DPR will be reported to the IRS and recipient on Form 1099-MISC by January 31 of the year following payment.

Note: Click here for expanded description of IRS and INS compliance issues associated with payments to nonresident aliens.

Supporting Documentation:

Assignor Invoice and IRS Form W-9 (if not on file) or LIU Independent Contractor and Substitute W-9 Form.

Note: Nonresident aliens must also complete LIU Nonresident Alien Information Form with attachments and IRS Form 8233 if eligible for treaty.

Dues/Subscriptions/Licenses/Permits

Definition: Payments to companies and organizations for dues, memberships, licenses, or permits on behalf of the University or its employees. Payments to companies and organizations for subscriptions of one year or less, and publications, such as journals, serials, and magazines.

Eligible Payee Type: Other

Supporting Documentation: Original invoice or completed order or registration form or license renewal form and IRS Form W-9 (if not on file).

Emergency Purchases under $500

Definition: Purchase of goods or services less than $500 due to urgency. Examples include emergency repairs or parts.
Please note: Purchases greater than $500 must be processed in accordance with Purchasing Policies and Procedures. Individuals purchasing goods and services without appropriate authorization risk personal liability for any incurred expenses.
The business purpose must be indicated in the “Explanation of Charges” section of the Direct Payment Request form.

Eligible Payee Type: Other

Supporting Documentation: Original invoice and IRS Form W-9 (if not on file)

Expense Reimbursement

Definition: Reimbursement of the cost of small dollar items (under $500) purchased directly by an individual on behalf of the University due to urgency. Includes travel expenses associated with candidate interviews. See Moving and Relocation Expense Reimbursement for information regarding reimbursement of house hunting and other moving expenses to newly recruited employees. See Employee Expense Report for reimbursement of travel and entertainment expenses.

Please Note: Purchases (excluding candidate interviews) greater than $500 must be processed in accordance with Purchasing Policies and procedures. Individuals purchasing goods and services without appropriate authorization risk personal liability for any incurred expenses.

The business purpose of all expense reimbursements, along with a brief description of the item and date purchased, must be indicated in the "Explanation of Charges" section of the Direct Payment Request form.

Eligible Payee Types:

University Employee
Nonresident Alien
Non-Employee

Compliance Issues:

Original receipts and the business purpose for the purchase must be provided.

Reimbursements of direct payments by employees to an individual are prohibited and will not be processed on a DPR or any other form.

Supporting Documentation: Original receipts

Medical Care Provider

Definition: Payments to physicians, corporations and individual healthcare providers who are not employees of the University for medical or healthcare services.

Eligible Payee Type: Medical Care Provider

Compliance Issues: Payments for medical/healthcare services provided by employees must be processed for payment through the Payroll system. All payments for Medical Care Provider will be reported to the IRS and recipient on IRS form 1099-Misc.

Supporting Documentation: Original invoice and IRS Form W-9 or LIU Independent Contractor and Substitute W-9 Form.

Moving and Relocation Expense Reimbursement

Definition: Reimbursement to newly hired employees for moving and relocation expenses, including house hunting and relocation trip costs for employees and their family members (e.g., transportation, meals, lodging, temporary storage, etc.), transfer of household goods, temporary living expenses, or other related expenses.

All moving/relocation expenses should be charged to ChartField account 62700. This object code should be used only for the reimbursement of expenses incurred after a hiring decision has been made. It should not be used for travel expenses associated with candidate interviews.

Eligible Payee Types: University Employee

Compliance Issues: Only costs of moving household goods and personal items, and relocation transportation costs for the employee and household members from the prior location to the new location can be paid tax free per IRS regulations. Other moving expenses paid will be reported as taxable income to the employee on IRS Form W-2. Applicable tax withholdings will apply.

Supporting Documentation: Original Receipts

Petty Cash Fund Reimbursements

Definition: Reimbursement or increase of petty cash funds for purchases of items of a nominal value (generally less than $10) or in emergency situations.

Eligible Payee Types: Other-Petty Cash Fund Reimbursements

Supporting Documentation: Original Receipts

Prize or Award

Definition: Awards and prizes represent payments to students or other individuals based on a competitive application and/or selection process. Payments of prizes and awards to employees must be processed for payment through the Payroll system.

Eligible Payee Types:

Nonresident Alien
Non-Employee

Compliance Issues:

Payments for a prize or award paid to a non-employee U.S. individual and processed via a DPR will be reported to the IRS and recipient on Form 1099-MISC by January 31 of the year following payment.

Note: Click here for expanded description of IRS and INS compliance issues associated with payments to nonresident aliens.

Supporting Documentation:

IRS Form W-9

Note: In lieu of IRS Form W-9, nonresident aliens must complete LIU Nonresident Alien Information Form with attachments and IRS Form 8233 if eligible for treaty.

In lieu of IRS Form W-9, nonresident aliens must complete with attachments and if eligible for treaty.

Professional Sole Entertainer Less than $1,000

Definition: Payments of compensation for professional entertainment services to companies, organizations and individuals who are not employees of the University. Payments to employees for professional entertainment must be processed for payment through the Payroll system. Entertainment fees greater than $1,000 will need to follow the Purchasing contract procedure.

Eligible Payee Types:

Nonresident Alien (Non-Employees)
Non-Employee

Compliance Issues:

Payments for professional entertainment paid to a non-employee U.S. individual and processed via a DPR will be reported to the IRS and recipient on Form 1099-MISC by January 31 of the year following payment.

Note: Click here for expanded description of IRS and INS compliance issues associated with payments to nonresident aliens.

Supporting Documentation:

LIU Independent Contractor and Substitute W-9 Form

Note: Nonresident aliens must also complete LIU Nonresident Alien Information Form with attachments and IRS Form 8233 if eligible for treaty.

Professional Services less than $5000

Definition: Payments of compensation for professional services other than architectural or engineering services. Payments to employees must be processed for payment through the Payroll system. Payment of Professional Services greater than $5000, as well as all architectural or engineering services, must follow the Purchasing contract procedure. Note: In the event a consulting project involves multiple phases, all phases combined must be less than $5000.

Eligible Payee Types:

Nonresident Alien
Non-Employee

Compliance Issues:

Payments for professional services paid to a non-employee U.S. Individual and processed via a DPR will be reported to the IRS and recipient on Form 1099-MISC by January 31 of the year following payment.

Note: Click here for expanded description of IRS and INS compliance issues associated with payments to nonresident aliens.

Supporting Documentation:

LIU Independent Contractor and Substitute W-9 Form

Note: Nonresident aliens must also complete LIU Nonresident Alien Information Form with attachments and IRS Form 8233 if eligible for treaty.

Refund

Definition: Re-payment of funds paid to the University by individuals, companies and organizations.

Eligible Payee Types:

Non-employee

Supporting Documentation (Refund): Copy of original deposit of funds form or account balance report.

Speaker/Lecture Fees

Definition: Speaker/lecture fees are one-time payments for services for which a discourse is presented to a class or an audience which may span one or several days. An individual who gives numerous lectures over a semester or over an extended period of time, or provides “for credit” services should be considered an employee and paid through the Payroll system. Payments to employees for Speaker/Lecture Fees must be processed for payment through the Payroll system.

Eligible Payee Types:

Nonresident Alien
Non-Employee

Compliance Issues:

Payments for speaker/lecture fees paid to a non-employee U.S. individual and processed via a DPR will be reported to the IRS and recipient on Form 1099-MISC by January 31 of the year following payment.

Note: Click here for expanded description of IRS and INS compliance issues associated with payments to nonresident aliens.

Supporting Documentation:

LIU Independent Contractor and Substitute W-9 Form

Note: Nonresident aliens must also complete LIU Nonresident Alien Information Form with attachments and IRS Form 8233 if eligible for treaty.

Subject Fee/Test Patient

Definition: Payments to non-employees for participation in a scientific research or art project. Patient study or modeling payments to employees must be processed for payment through the Payroll system. All payments for patient study fees and modeling processed via a DPR will be reported to the IRS and recipient on Form 1099-MISC or Form 1042S (nonresident aliens).

Eligible Payee Types:

Nonresident Alien
Non-Employee

Compliance Issues:

Payments for patient study fees paid to a non-employee U.S. individual and processed via a DPR will be reported to the IRS and recipient on Form 1099-MISC by January 31 of the year following payment.

Note: Click here for expanded description of IRS and INS compliance issues associated with payments to nonresident aliens.

Supporting Documentation:

LIU Independent Contractor and Substitute W-9 Form

Note: Nonresident aliens must also complete LIU Nonresident Alien Information Form with attachments and IRS Form 8233 if eligible for treaty.

Webinar Fee

Definition: Payment of registration fees to companies and organizations for webinars.

Eligible Payee Type: Other

Supporting Documentation: Original invoice or completed order or registration form; IRS Form W-9 (if not on file).

U.S. Postmaster Purchases

Definition: Purchases from the U.S. Postmaster including bulk mailings, postage meter reimbursements, stamps and other goods and services.

Eligible Payee Type: Other

Supporting Documentation: The business purpose of all U.S. Postmaster checks, along with a brief description of usage must be indicated in the "Explanation of Charges" section of the Direct Payment Request form.

Compliance Issues Pertaining to Nonresident Aliens

Nonresident Alien (NRA) (non-employee): Special IRS and INS regulations regarding verification procedures, tax withholding and reporting apply to NRAs. Payers are required to obtain the information requested on the LIU Nonresident Alien Information Form, which is a combination of three separate forms applicable to payment issues for NRAs. Additional backup items referenced on the form - copies of passport, visa, I-94 card, and DS-2019 (for J-1 visas) need to be submitted with the DPR requesting payment.

Certain foreign nationals, depending on visa type, cannot be paid for any reason. Others have limits regarding the number of payments from U.S. institutions that can be received within any six-month period. Disbursements to NRAs may be processed only after a complete packet of documentation is received and reviewed.

Tax withholdings of 30% apply to NRAs who have no social security number (SSN) or individual taxpayer information number (ITIN - an identifier available only to NRAs who do qualify for tax treaty benefits) or, when no treaty benefits have been applied for and allowed, or, are not available. (Note: students may be eligible for a reduced withholding rate of 15% under certain circumstances.)

To obtain tax treaty benefits, the NRA payee must complete IRS Form 8233, "Exemption from Withholding on Compensation for Independent Personal Services on a Nonresident Alien Individual", supplying all information requested. Form 8233 must be submitted to the INS for pre-approval 10 days prior to payment. The INS will reject incomplete forms. Therefore, please insure that fully completed Forms 8233 are submitted with the DPR at least 14 days prior to the check-needed date.

Payments to a non-employee NRA individual processed via a DPR will be reported to the IRS and recipient on IRS Form 1042S by March 15 of the year following payment.