Supplier Payment FAQs
Are all payments subject to PA 3.07% withholding?
No. The Pennsylvania Act 43 of 2017 created a withholding obligation for organizations that make payments of Pennsylvania-source non-employee compensation or business income to a Pennsylvania non-resident individual or single member LLC that has a Pennsylvania non-resident member. As of July 1, 2018, the university will withhold the required 3.07% Pennsylvania income tax on the following payments:
- Payments reported on a 1099-MISC of Pennsylvania source non-employee compensation or business income to a non-resident individual or a single member LLC with a nonresident owner.
- A lessee of Pennsylvania real estate who makes a lease payment in the course of a trade or business to a non-resident lessor. A lessor includes non-resident individuals, individual of a single member LLC classified as a disregarded entity, estates and trusts.
International suppliers who receive a Form 1042-S are exempt from this withholding since they do not receive a Form 1099-MISC.
This nonresident withholding requirement does not apply to payments for goods and materials or wages paid to employees.
Should separate invoices be submitted if a supplier is performing work both inside and outside of Pennsylvania?
Yes. Effective immediately, if a supplier performs services both physically in Pennsylvania and outside of Pennsylvania, separate invoices must be submitted.
What forms of payment does the university offer?
Wire payments are available in Oracle for certain payments (i.e. US Dollar to a foreign bank). A Wire Transfer Request Form [.pdf] must be completed when non-USD currency is paid to a country with a currency that does not match the country of origin’s currency (i.e. using the Euro to pay an Australian bank).
Check payment is available for US Dollar if the payment types listed above are not accepted by the supplier.
What is the university’s payment process?
How can suppliers receive their payments electronically?
How do we pay suppliers who do not accept payment in US dollars or in the foreign currencies setup in Oracle?
Suppliers can be setup to receive payment in a currency other than US dollars by completing the Wire Transfer Request Form [.pdf] or Electronic Fund Transfer Form [.pdf]. (View the FAQ below for a complete listing of currencies available in Oracle.)
A Wire Transfer Request Form [.pdf] must be completed when sending Non USD currency paid to a bank account/country that does not match (i.e. Euro to Australia), and payments in a currency not listed in Oracle. This form needs to accompany the invoice each time a payment is needed.
An Electronic Fund Transfer Form [.pdf] must be completed when we are sending any currency available in Oracle to a bank account in that currency., (i.e. Canadian Dollar to Canadian Dollar Bank). This form only needs completed once for set-up and anytime the supplier makes a change to their bank account.
In order for the wire transfer to be made, the following must be completed:
- The supplier must be setup as a supplier in Oracle
- A PO has been created and the PO number has been referenced on the Wire Transfer Request form in addition to any supporting documentation
If these conditions are not met, Accounts Payable will contact the Preparer of the Wire Transfer Request form.
***NOTE*** Depending on the foreign currency of the wire transfer and the transfer process itself, there could be a fee charged to CMU and/or the supplier by the bank for the transfer.
What currencies are available in Oracle?
|AUD||Australian Dollar||Australian Dollar||Australia|
|BHD||Bahraini Dinar||Bahraini Dinar||Bahrain|
|BRL||Brazilian Real||Brazilian Real||Brazil|
|CAD||Canadian Dollar||Canadian Dollars||Canada|
|CHF||Swiss Franc||Swiss Franc||Switzerland|
|CNY||Yuan Renminbi||Yuan Renminbi||China|
|COP||Colombian Peso||Colombian Peso||Colombia|
|DKK||Danish Krone||Danish Krone||Denmark|
|GBP||Pound Sterling||Pound Sterling||United Kingdom|
|HKD||Hong Kong Dollar||Hong Kong Dollar||Hong Kong|
|INR||Indian Rupee||Indian Rupee||India|
|KRW||Won||Won||Korea, Republic of|
|MXN||Mexican Peso||Mexican Peso||Mexico|
|QAR||Qatari Rial||Qatari Riyal||Qatar|
|RWF||Rwanda Franc||Rwanda Franc||Rwanda|
|SEK||Swedish Krona||Swedish Krona||Sweden|
|SGD||Singapore Dollar||Singapore Dollar||Singapore|
|TWD||New Taiwan Dollar||New Taiwan Dollar||Taiwan|
|USD||US dollar||US dollars||United States|
How do I know when a payment has been processed (when an expense report/invoice has been paid)?
How can I tell if an Accounts Payable payment has been cashed?
When should I request a stop payment on an Accounts Payable check?
CMU Ethics Reporting Hotline
www.reportit.net (Username: tartans; Password: plaid)