Personal information related to the payments of research subjects should be kept confidential. Names are not required on the voucher. However, personal information including names, addresses, social security numbers and amounts paid must be maintained in your department for audit purposes. Enter the following notation in the description field of the voucher "__ subjects paid a total of $____."

Research subjects payment information must be submitted to Financial Services Tax Desk by January 10th each year. This information needs to include research subjects' names, addresses, social security numbers and amount received. Payments from the UW to an individual (aggregated at the Tax Desk) in excess $600 will be reported to the IRS. Failure to report this information may subject the University to a fine by the IRS.

Consider using a field advance to pay research subjects for short-term studies.

Payment to Individuals

In order to request reimbursement from a Revolving Fund, individuals must provide a valid receipt for authorized purchase made with their personal funds on behalf of the University.

If only a portion of the receipt is being reimbursed, highlight the reimbursable items. Calculate and note the amount of sales tax reimbursed.

Receipts

Original receipts are required. Internet receipts are acceptable. A receipt should include the following information:

Date
Place
Vendor Name
Amount
Description of items purchased

The vendor name must be stamped or printed on the receipt. The date, amount and description may be handwritten if necessary. If any of the information listed above is not included on the receipt, the purchaser may complete a perjury statement.

Credit Card Purchases

A detailed receipt and the credit card receipt are required. If the credit card receipt is unavailable and the invoice or detailed receipt does not show paid in full, a copy of the credit card statement can be supplied as proof of payment. Ensure the purchaser's name appears on the statement. Cross out the credit card number to prevent unauthorized use. The credit card statement must show the name of the vendor, the date purchased, the dollar amount and must match the invoice or detailed receipt provided. A perjury statement must be used if this criteria cannot be met.

The ProCurement card is recommended for credit card purchases.

Vendors with Annual Rebates

If the purchase was made from a vendor that provides annual rebates (e.g. University Book Store) and the original receipt is not available, the current percentage that the vendor is offering must be deducted from the total amount before reimbursing the individual. The University Book Store current rebate is 10%.

TEV

Travel Expense Vouchers (TEV) used for documentation of miscellaneous travel reimbursements through a revolving fund can be used instead of the Revolving Fund Voucher.

Paying a Vendor Directly

Checks must be written directly to the vendor. The receipt, invoice or statement must list the required information and must indicate the purchase was paid in full.

Sales and Use Tax

Revolving fund authorized purchases of Tangible Personal Property (TPP) that are obtained in the State are subject to Sales Tax or Use Tax based on the Washington State Retail Sales Tax Code.

Since out-of-state vendors are not required to charge or collect sales tax, Use Tax must be determined, if the purchase is taxable. If an in-state vendor does not charge sales tax on a purchase, the UW is required to pay a Deferred Sales Tax to the State.

If an invoice does not clearly list that Washington State Sales Tax has been charged, the department is responsible for calculating the Use Tax when requesting reimbursement. Since the Use Tax was not originally included in the vendor's invoice it is not subject to the department's reimbursement or to an individual requesting reimbursement from the revolving fund. However, the Use Tax is charged to the department's budget since the UW is required to pay Use Tax to the State of Washington.

Calculating Taxes

The current tax rate for Bothell and Seattle is 8.9% and Tacoma is 8.8%. New rates generally come into effect every April 1st. The Use Tax rate should be based on the rate for the location where the items was delivered. Tax rates for other locations can be found at the Sales Tax Rates website.

If the vendor is located in the State of Washington, Deferred Sales Tax should be calculated on the full amount of the invoice (including freight/shipping charges). If the vendor is outside the State, tax should only be calculated on the cost of the merchandise (excluding freight/shipping charges). Cost of a warranty would be considered as part of the cost of the merchandise.

Multiply the invoice amount times the rate to determine the amount of tax. For example, ($100 x .089 for Seattle = $8.90 for the Use Tax). This amount should be entered on the same line as the charge for the purchase on the Departmental Revolving Fund Invoice Voucher under the column heading Use Tax. The amounts in the Use Tax column are not to be included in the Invoice Total and are not included in the reimbursement to the department. The entry is only to record the amount of tax that should be charged to the budget.

Rejected Reimbursement Requests

Auditors will contact the custodian to resolve any discrepancy on the reimbursement request. Payment will be pending until the problem is resolved.

The department can request the problem vouchers be withheld and the remainder processed for reimbursement if the discrepancy is not easily resolved. The department must make every effort to resolve the issue before the next reimbursement request is submitted.