New Vendor Setup Requirements


New requirement: Starting February 27, 2012, Accounts Payable requires all persons and organizations that need to be set up in the AP vendor file (Finance System) to complete a Form W-9 or W-8, the appropriate Vendor Coversheet, and a Direct Deposit Authorization Form (for non-employee vendors with a US bank account).

What changed? Previously, Accounts Payable provided substitute UH System vendor setup forms that new vendors could complete as an alternative to the W-9 or W-8. Also, the Direct Deposit Authorization Form was optional (but encouraged) for all vendors except for UHS employees, who are required to enroll for AP direct deposit in PASS (employee self-service). Now the Direct Deposit Authorization Form is required for all non-employee vendors with a US bank account.

Reason for discontinuing the use of UH System vendor setup forms: The IRS requires that any individual (including UHS students, employees, and regents), contractor, business, or organization that will receive non-payroll payments from UH System must complete a W-9, W-8, or substitute form created by UH System. The IRS requires that any substitute vendor setup form contain all of the elements of the W-9 or W-8. Since the IRS periodically makes changes to the W-9 and W-8, AP needed to monitor these forms for changes and update the UHS forms accordingly. By directing vendors to the IRS website to complete the W-9 or W-8, we are assured that the vendor is completing the most current form and AP does not have to monitor these forms for changes.

Reason for requiring non-employee vendors with a US bank account to complete a Direct Deposit Authorization Form: UH System is moving to direct deposit payments for all vendor payments and employee/student reimbursements as a cost saving measure.

What about existing vendors? Existing vendors in the UHS Finance System that already have a W-9, W-8, or equivalent vendor setup form on file are not required to complete another W-9 or W-8 unless they change their name or tax ID number. New addresses can be added to existing vendors with a letter or invoice from the individual or company. Existing vendors who are not already setup for direct deposit should do so ASAP. Accounts Payable will continue to contact existing vendors to ask them to complete the Direct Deposit Authorization Form.

 


VENDOR SETUP PROCEDURES

US Individuals
The following vendors, who are a US citizen or US resident alien, must complete the documents below to receive non-payroll payments from UH System:
• UH System employees
• UH System students
• UH System prospective employees
• UH System regents
• UH System guests
• Other individuals (except independent contractors) who are U.S. citizens or U.S. resident aliens

Complete the documents below and fax to UH System Accounts Payable at 713-743-0521:
• Vendor Coversheet for Individuals
• W-9 Form
• Direct Deposit Authorization Form (Non-Employees Only)*

* UHS employees enroll in AP Direct Deposit through PASS after they are setup as a vendor in the AP vendor file.

 




U.S. Businesses/Independent Contractors/Organizations
The following vendors, who are a US citizen, US resident alien, or US business/organization, must complete the documents below to receive non-payroll payments from UH System:
• US sole proprietors, partnerships, companies, corporations, and organizations
• US independent contractors
• US estates and domestic trusts
• Other businesses created in the United States or under the laws of the United States

Complete the documents below and fax to UH System Accounts Payable at 713-743-0521:
• Vendor Coversheet for Businesses/Organizations
• W-9 Form
• Direct Deposit Authorization Form
 



Non-U.S. Individuals and Businesses/Organizations
The following vendors, who are NOT a US citizen, US resident alien, or US business or organization, must complete the documents below to receive non-payroll payments from UH System:
• Non-US employees of UH System
• Non-US students of UH System
• Non-US prospective employees of UH System
• Non-US guests of UH System
• Non-US sole proprietors, partnerships, companies, corporations, and organizations
• Non-US independent contractors
• Non-US estates and trusts
• Other non-US individuals or businesses

Complete the documents below and fax to UH System Accounts Payable at 713-743-0521:
• Vendor Coversheet for Non-US Individuals and Businesses/Organizations
• W-8 Form
• Direct Deposit Authorization Form (US Bank Accounts Only)*

* UHS employees enroll in AP Direct Deposit through PASS after they are setup as a vendor in the AP vendor file. Non-US individuals and businesses/organizations without a US bank account are not required to submit a Direct Deposit Authorization Form. A check will be mailed to the vendor’s address.



M.A.P.P. will be updated accordingly. If you have any questions regarding the vendor setup procedures, please contact Cissy Bean at 713-743-8711 or mlbean@central.uh.edu.