Direct Pay Payments

A Direct Pay Form is used to pay for specific types of expenditures. Please remember that most goods and services should be purchased through EZ-Buy using the Showcased Suppliers or using the Non-Catalog Form or by using a P-Card.

Log Into EZ-Buy

If you have a payment to make and it does not fit any of the categories below, contact Purchasing Services at (435) 797-1033.

Moving Expenses Paid to New Employees

Departments may offer to pay moving expenses as an incentive during the hiring process for a faculty or administrative position (Policy 335 - Relocation Assistance). It is up to the department to negotiate an amount to be used towards the cost of the moving expenses.

The preferred method of payment for moving expenses is to provide the total negotiated amount via payroll using an EPAF. For instructions on the type of EPAF needed, please refer to HR's website. Payroll taxes will be withheld at the time of payment. Any amounts paid or provided by the University towards moving expenses are taxable - even if paid directly to a third party. (Please refer to IRS Publication 521.) If there are any concerns or questions regarding this procedure, please contact Payroll or Accounts Payable.

Additional Travel Authorization Expenses

A Travel Direct Pay should be used for the following:

• Pay a vendor for travel related expenses.
• If someone other than the traveler pays for a portion of the trip and needs to be reimbursed they can submit this form in EZ-Buy with the appropriate documentation.
• A signed travel related contract that requires a payment by check. 

Required information and documentation to process the direct pay:

1. The name and A# of the vendor or person being paid. If the person does not have an A# please select New Supplier/Supplier Unknown in EZ-Buy and fill in the needed information. 
2. An approved TA or TR number
3. The itemized receipts for the travel related reimbursement or the itemized invoice from the vendor

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy.  You will find Travel Related Expenses as an option within the form.

Royalty Payments

Royalty payments are payments for the use of intangible property such as patents, copyrights, trade names, and trademarks. Payments for an author's services (e.g., presenter fees) are not considered royalty payments. Direct Pay forms are the appropriate payment form to make royalty payments even if the payee is an employee of the University.

The University complies with IRS regulations by reporting royalty payments of $10 or greater to any person during a calendar year on Form 1099-MISC.

Required information to process the Direct Pay:

1. The name and A# of the vendor or person being paid. If the vendor does not have an A#, they will need to register through Payment Works. 
2. Use account code 712501

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy.  You will find Royalty Payments as an option within the form.

Payments to Research Subjects

People who participate in research projects are sometimes compensated for their time, effort and expenses. They can be paid in the form of money, gift cards or products. Payment made for participation in studies is not considered a benefit; it is a recruitment incentive.

Payment for participation in a research project may include being paid to answer a survey or for taking part in a food tasting project. 

All research participant payments paid in the form of money or gift cards are taxable to the recipient. If a participant receives $600 or more per calendar year, a 1099-MISC will be issued by the University in accordance with IRS regulations.

For payments for participant support costs, please see the 'Awards, Prizes, & Participant Support Costs' section below.

Methods of Payment to Participants:

Payment by Cash

A researcher may decide to offer small cash payments to research subjects. Only the Controller's Office has the authority to establish a temporary advance of cash to be used to pay research subjects. For procedures to obtain, operate and close this type of cash advance fund, please click on Research Cash Advance Fund.

Payment by Direct Pay

Payments to research participants can be processed by using the Direct Pay Form in EZ-Buy. This includes all research subjects even if they are a student or employee of the University.

Required information to process the Direct Pay:

1. The name and A# of the vendor or person being paid. If the person does not have an A# please select New Supplier/Supplier Unknown in EZ-Buy fill in the needed information.
2. Use account code 712115

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy.  You will find Research Subject as an option within the form.

Payments to Performers, Referees, and Contest Judges

This Direct Pay Form may be used for people who are providing services for the University as a performer, referee, or judge. Examples include (but are not limited to):

1. Playing a musical instrument for an awards program
2. Performing as a comedian or magician
3. Refereeing a soccer or basketball game
4. Judging a rocket or baking contest

Payment to a USU Employee

If paying a University employee, please contact Accounts Payable at 797-1011 before processing for payment.

Payment to a Non-USU Employee

If the person being paid as a performer, referee, or contest judge is not an employee of Utah State University, use the Direct Pay Form EZ-Buy link below. The University complies with IRS regulations by reporting payments that total $600 or greater over the span of a calendar year on Form 1099-MISC.

Required information to process the Direct Pay:

1. The name and A# of the vendor or person being paid. If the vendor does not have an A#, they will need to register through Payment Works. 
2. Use account code 712110

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy.  You will find Performers, Referees, and Contest Judges as an option within the form.

Payments to Students

USU Students are defined as those persons who are registered at Utah State University and are pursuing a degree. A USU student may be an undergraduate or graduate student.

Payments to students often have implications involving financial aid and/or tax reporting. Use the guidelines below for determining the type of payment based on criteria instead of common terms. Once a payment type has been identified, the procedure is listed so that payments can be processed quickly and appropriately. Types of payments may include payment for student-provided services, scholarships, tuition awards, fellowships, stipends, prizes or reimbursements.

Student Payment Categories:

All payments to  students must fall into one of these categories:

• USU Student Stipends
  • USU student stipends are processed through the Scholarship Office, you can contact them at: (435) 797-7171.
• Non-USU Student Stipends
  • A non-qualified scholarship for a student enrolled in an institution other than Utah State University can be paid using this form. This payment should be made directly to the institution rather than the student. Stipends are issued for educational expenses other than tuition, fees, and books.
• Services
  • The term "services" is used to mean "studies, research, or other activities conducted primarily for the benefit of the University or other grantor." Some examples of students receiving payment for services may include but are not limited to; teaching assistants, research assistants/technicians, administrative assistants, and lecturers.
  Services/Compensation— If ANY of the following criteria are true, it is a payment for services:
  • Employee-employer relationship: The University has the right to direct the student's work, including when, where and how the work will be done and what the final product will be. (This does NOT include educational guidance.)
  • Essential Position: Students serve in the capacity of instructor, graduate assistants, and laboratory technicians or in other roles for which the University, in the absence of the student, would need to use employees or contractors.
  • Conditions of Pay: Pay is based upon hours or percentages of time worked performing assigned job specific duties.
  • Contract Fulfillment: The services are performed in fulfillment of the University's contractual obligations with outside entities under which the recipient is required to produce specific deliverables.
  • Note: A student who provides services to the University MUST be classified as either an employee or independent contractor. There are additional requirements that have to be met for students who provide services, so please contact either Human Resources or Student Employment as noted below.

How to Process Payments to Students for Services:

Contact Human Resources at (435) 797-1810 if any of the following is true:

• Benefits are to be paid
• Employment is 100 percent time.

Contact the Student Employment Office at (435) 797-0184 if any of the following is true:

• Benefits are not to be paid
• Employment is less than 100 percent time.

Refunds of Fees and Deposits

Payment made to attend a conference, seminar or other meeting on campus is not considered to be academic tuition and fees. The rules for refunds for non-academic tuition and fees are established by the hosting department or organization. Departments or organizations should use a Direct Pay Form to process refunds.

Refunds of All Other Fees and Deposits

Fees or deposits are sometimes required of University employees or students. An employee or student may qualify for a refund of the fees or deposits depending upon circumstances such as the termination of employment.

Refunds of fees or deposits should be processed by Direct Pay. Examples include but are not limited to the refund of key deposits, refund of parking fees, or refunds of security deposits.

Required Information and Documentation to Process the Direct Pay:

1. The name and A# of the vendor or person being paid. If the person does not have an A# please select New Supplier/Supplier Unknown in EZ-Buy fill in the needed information.
2. The title of the conference, seminar, or type of refund
3. The name of the hosting department or organization
4. Documentation showing the original payment (Required)
5. Refunds must be processed and credited against the original index and account code. 

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy.  You will find Refund of Fees & Deposits as an option within the form.

Awards, Prizes, & Participant Support Costs

Prizes and Awards may be given to students, employees, and non-employees.

Awards Given to Students

USU student awards are processed through the Scholarship Office, you can contact them at: (435) 797-7171.

Employee Award (employed at any time during the current calendar year)

Policy 505 - "Employee Gifts and Awards" provides specific guidelines on the type of gifts or awards that can be given to employees.

Awards in the form of gift cards of any amount or non-cash items over $100 are taxable to the employee. Payroll taxes will be withheld from the employee's next paycheck. Please fill in the information in Service Now - Taxable Gift & Award. 

Non-USU Employee Award

The University complies with IRS regulations by reporting payments, including awards, that total $600 or greater over the span of a calendar year on Form 1099-MISC.

Required Information and Documentation to Process the Direct Pay for Non-Employees:

1. The name and A# of the recipient of the award. If the vendor does not have and A#, they will need to register through Payment Works. 
2. Description and name of award
3. Use account code 714600

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy. You will find Award/Prize/Gift Card/Participant Support Costs as an option within the form. 

Participant Support Cost Payments (related to Sponsored Programs)

The Uniform Guidance defines Participant Support Costs as items such as: subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects. For payments to USU employees, see Employee Awards paragraph above.

For example, teachers may be recruited to attend specific training for special needs children. The teachers receive payment for their participation. Other public benefit funding may include covering the cost of educational classes for a targeted range of participants.

• Participant Support Costs are processed through Payroll using PSC earn code through PHATIME. Benefit rates do not apply to participant support costs.
  
  • Current Benefited Employees: Payments are processed through Payroll JB_ADJ using Z_PSPC with 618610 account code, in labor distribution. Title: Participant Support Costs. HR will change earn code from NO to PSC.
  • Current Non-Benefited Employee / Past Employee (paid in current calendar year): Payments are processed through Payroll JB_MW2 using P10XXX with 618610 account code, in labor distribution. Title: Participant Support Costs.
    • Do not build or pay this position in AggieTime.
    • Drop a 1 in PHATIME using PSC earn code.
    • Does not require a new I-9 because this is not paying for work performed.
  • Never an employee or not paid in current calendar year NBIJLST date = 21/01/XXXX: Process as direct pay award/prize/gift card/participant support costs account 715825.
• All other cash awards are processed using GFI earn code through PHATIME. Benefit rates do not apply to award payments.
• Travel related expenses may be processed through the Travel system (requiring a TA & TR).

 Required information and documentation needed to process the Direct Pay: 

1. The name and A# of the vendor or person being paid. If the vendor does not have an A#, they will need to register through Payment Works. 
2. A written reason/explanation for requesting Participant Support payment
3. Use account code 715825.

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy.  You will find Award/Prize/Gift Card/Participant Support Costs as an option within the form.

Honorariums

An honorarium is a payment to a non-employee in recognition of a special service, the purpose of conferring distinction, or to symbolize respect, esteem, or admiration for which custom or propriety forbids a price to be set or where no expectation exists for payment. Honorarium payments are for a specific one-time service. They may not be used to pay for any services where a price is negotiated. The types of honorarium payments may include, but are not limited to:

1. A guest lecturer
2. A musical demonstration related to Music Department Instruction
3. A guest speaker at a commencement exercise or other similar function

The types of activities that are not honorarium payments may include, but are not limited to:

1. Performance fee payments
2. Payments to students
3. Payment to a lecturer who teaches for an entire semester or who teaches a series of lectures
4. Payment to an independent consultant or independent contractor. These are individuals of proven professional or technical competence who provide primarily professional or technical advice to the University. The University does not control the manner of performance or the result of the service

There are special document requirements if the honorarium is being paid to a foreign visitor. Please see Foreign Visitor Payments. 

The IRS considers honorarium payments to be non-employee compensation. The University complies with IRS regulations by reporting non-employee compensation that totals $600 or greater over the span of a calendar year on Form 1099-MISC.

Required information and documentation needed to process the Direct Pay:

1. The name and A# of the vendor or person being paid. If the vendor does not have an A#, they will need to register through Payment Works. 
2. A written reason/explanation for requesting an honorarium payment
3. Use account code 712110

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy.  You will find Honorarium as an option within the form.

Foreign Visitor Payments

Utah State University (USU) must comply with Internal Revenue Service Regulations in connection with withholding and reporting of tax on nonresident aliens. The reporting and taxation requirements of nonresident aliens are very complex. 

Before any arrangements are made with the foreign visitor or company, contact Global Engagement to discuss the immigration and payment requirements (435) 797-1124. 

Payments made to or on behalf of a nonresident alien may be reported to the Internal Revenue Service (IRS). In addition, all payments are subject to federal income tax withholding of 30%. 

When paying a foreign visitor with grant funds, the Sponsored Programs Office should be contacted (435) 797-1226. 

Required Information & Documentation Needed to Process the Check Request for Payments to Foreign Visitors:

1. The name and A# of the vendor being paid. If the vendor does not have an A#, they will need to register through Payment Works. 
2. Use account code 712113
3. A written reason/explanation for requesting a payment to a foreign visitor. 

Reimbursements

The University discourages the use of personal funds as a procurement method, and such funding should occur only when P-card or EZ-Buy methods are unavailable. Requests for reimbursements should be made on a timely basis, generally within 30 days of purchase and no later than 60 days to comply with IRS safe harbor guidelines. 

Reimbursements should not be used for purchases that cost $5,000 or more without Purchasing's approval.

This category includes reimbursements to people, including employees, who have spent personal funds on appropriate University business-related items.

Request for Meals and Entertainment Reimbursement

Employees may be reimbursed for qualified meals and entertainment expenses and should use the Post Meals Form in EZ-Buy. Policy 516 - "Meals & Entertainment" provides detailed information about these types of expenses.

Alcohol

When meals and entertainment include alcohol purchases, i.e., candidate entertainment, development activities, etc., employees can be reimbursed through the Post Meals Form in EZ-Buy.

Required information & documentation to process the Reimbursement or Post Meals Form:

1. The name and A# of the vendor or person being paid. If the person does not have an A# please select New Supplier/Supplier Unknown in EZ-Buy fill in the needed information. 
2. An itemized receipt
3. An index not funded by state appropriation or a federal fund agency
4. A written explanation of the business purpose

Both the Reimbursement and the Post-Meals forms can be found under 'Emergency Use Forms' on the homepage of EZ-Buy. 

Payments to Teaching Mentor 

This Direct Pay Form may be used to pay a non-employee who is providing an opportunity for a student teacher in their classroom.  

The IRS considers these payments to be non-employee compensation. The University complies with IRS regulations by reporting non-employee compensation that totals $600 or greater over the span of a calendar year on Form 1099-NEC 

Required information and documentation needed to process the Direct Pay:

1. The name and A# of the vendor or person being paid. If the vendor does not have an A#, they will need to register through Payment Works.
2. A written reason/explanation for requesting the payment. 

The Direct Pay form can be found under 'Accounts Payable Forms' on the homepage of EZ-Buy. You will find Teaching Mentor as an option within the form.

Gift Cards

Gift Cards may be purchased using the Award/Prize/Gift Card/Participant Support Cost Direct Pay. Please refer to the Gift Card Procedure for more information. 

Required Approvals for Direct Pay Forms

Approvals are required from both the preparer of the form and the authorizer. The "authorizer" is the person who has primary responsibility for the index being charged for the expenditure. This person can be the department head or other authorized administrator, or the principal investigator.

The preparer of the Direct Pay form and the authorizer cannot be the same person. Any person being paid on a Direct Pay form cannot approve as the authorizer. A supervisor or other authorized administrator approval is required.