The person responsible for the budget being charged must approve department charges. Department heads may designate another individual to be responsible for approval of payments by submitting an email to the Accounts Payable Coordinator. Supervisor approval is mandatory for personal reimbursements and college credit card payments. Individuals may not approve their own reimbursements, even if they are the budget manager of the budget being charged.
Contact our Grants and Contracts Office for approvals related to grant payments.
Vendor invoices and employee reimbursements are processed on a weekly basis. Invoices not requiring immediate payment will be held and paid according to the terms indicated by the vendor. For fully completed payment requests uploaded to OnBase by 1:30 p.m. on Tuesday, whose payment terms require immediate payment:
Due to the large volume of accounts payable payments processed, please submit payment requests as far in advance as possible. Since checks/direct deposits are processed weekly, special off-cycle payments will be processed only for emergencies, and must be approved by our controller. Learn more about check or direct deposit payments to employees or vendors.
Although Davidson is exempt from Federal and State income taxes, we are required to pay North Carolina sales tax on all purchases. We are eligible for a refund of sales tax we have paid to North Carolina vendors. (Please note that we are not eligible for a refund of sales taxes paid to other states.) For additional information please contact the cash management coordinator at 704-894-2067 or the accounts payable coordinator at 704-894-2206.
Personal services rendered by non-North Carolina individuals and companies (including non-U.S. vendors) are subject to a four percent withholding under North Carolina law. The North Carolina Department of Revenue (NCDOR) has deemed personal services in connection with the following events to be subject to this four percent withholding:
This requirement is applicable to vendors who receive payments in excess of $1,500 from us in a calendar year. Please tell the Accounts Payable Coordinator in advance if the voucher is for a one-time payment under the limit. Please note that reimbursement for expenses is not subject to this withholding.
Non-U.S. citizens are also subject to this tax, unless they are covered by a tax treaty, in which case they are exempt. See the Non-U.S. Citizens section for more information on tax treaties.
Payments should not be increased to offset this withholding. Please contact our accounts payable coordinator at 704-894-2206, prior to making payment arrangements, with any questions concerning the withholding requirements for non-North Carolina recipients.
Visit the North Carolina Department of Revenue for more information.
Since some non-residents are prohibited from working in the U.S. and/or being paid compensation, it is imperative that you contact our accounts payable coordinator as soon as you are aware that you will be paying a non-U.S. Citizen, even for reimbursement of expenses.
We require all visitors to complete a foreign national information form to assist our office in researching the payment. The information on this form will help us to determine whether payment is legal, and if so, which IRS forms must be completed. These forms may include Form W-8BEN, Form 8233 or Form W-7. We must have a social security number or a U.S. Individual Taxpayer Identification Number before a check can be issued.
Please be aware that if we are making a payment to a U.S. person, but we know this person is receiving the payment as an agent of a foreign person, we must treat the payment as being made to the foreign person, and follow all the applicable procedures.
In general, we must withhold tax of 30 percent unless a tax treaty exists between the United States and the recipient's country of residence. This 30 percent tax is in addition to the North Carolina four percent personal services tax. If the vendor wishes to take advantage of a tax treaty, he/she must complete a Form 8233 and provide it to us in order to avoid withholding. This form must be mailed to the IRS 10 days prior to payment.
Please contact our accounts payable coordinator at 704-894-2206 to obtain the forms, and to determine the tax consequences prior to making payment arrangements with these individuals.
Federal regulations require us to report to the IRS payments for services rendered by unincorporated vendors, such as speakers, performers, and contractors. These payments are reported to the IRS via IRS Form 1099-Misc.
We must have a tax identification number (TIN, Employer Identification number or Social Security Number) for each unincorporated vendor. The vendor is required by law to provide us with their correct TIN. We collect this information on the new vendor request/substitute W-9 form. No checks will be issued until this completed/signed form is obtained.
Payments must be made directly to the person/company providing the service. We will not issue checks to third parties.
After confirming that the vendor has not already been set up in Banner, send a new vendor request/substitute W-9 form to the vendor you wish to have added. The vendor can fax that form to the accounts payable coordinator at 704-894-2502 or email to new vendor request. Please note that no checks will be issued until we have received a fully completed new vendor form.
Please also send an informational email to new vendor request, so that we will anticipate receiving the new vendor form and will know who to notify once the vendor number is established. Vendor numbers can be found at the Inside Davidson report site (click on “Self-Service Reports” and click on “Vendor Lookup”). For access, please contact the accounts payable coordinator.