Vendor File

Vendor File Maintenance Policy

In order to make a payment, the entity or individual you are trying to pay must have a vendor code on file. If you have checked the vendor file and determined there is not a vendor code on file, one must be added. In order to do so a W-9 with original signatures must be obtained from the vendor in question.

Who Must Complete a W-9:

The University is required to file 1099 Miscellaneous Income information with the Internal Revenue Service each year. In order to do this, the University needs a correct federal employer identification number (EIN) or Social Security Number (SSN) for each vendor. Form W-9 is used to gather this information. All vendors doing business with or providing a service to the University must complete and return a W-9 with a wet signature to Accounts Payable or Procurement.  The original W-9 can be mailed directly to the Controller's Office 100 Venture Way, Suite 319, Hadley, MA.

 

Exception: The IRS will allow the University to accept a Faxed copy (413-545-3144) or a PDF copy sent via email to the vendor team (vendors [at] admin.umass.edu) of a W-9 as a substitute for an original for companies only, as long as it bears a wet signature. W-9s including a SSN should never be sent via email.

For payment of foreign non-resident alien individuals the W-9 should not be used, please see the Foreign Visitors portion of this web site.

Names and EIN's

The vendor will be set up in the vendor file using the name, address and EIN or SSN provided on their completed W-9. If there is more than one payee or the account is in more than one name, on the first name line enter only the name of the recipient whose EIN or SSN is shown on the W-9. For sole proprietors, show the individual's name first and then the name of the business, you may not enter only the business name. Sole proprietors may use either the individual's SSN or the EIN of the business.

Employees and Students

To establish a vendor code for an employee or student, simply email their name, legal address, and employee identification number or student identification number to the Accounts Payable Vendor File Maintenance Clerk at vendors [at] admin.umass.edu. Please note that due to Internal Revenue Service regulations, employees and students are only allowed refund and reimbursement payments through Accounts Payable, any other type of payment must be processed through Human Resources or Student financials.

Penalties and Backup Withholding

Penalties are assessed by the IRS for each vendor the University fails to provide the proper information for. The amount of penalty ranges from $15 to $100 per vendor. The following is a list penalties can be given for:

Incorrect EIN or SSN
Missing EIN or SSN
Incorrect or missing name (name must correspond to IRS records)
Illegible forms

Failure of vendors to comply with W-9 requests could result in delay of payment and/or a withholding of about 30%. Vendors are also subject to about 30% backup withholding if any of the following are true:

Vendor does not supply a EIN or SSN
The IRS has notified the University that the vendor has provided an incorrect EIN or SSN ("B" Notice)
The IRS has notified the University that the vendor is subject to backup withholding ("C" Notice)
Vendor has completed the W-9
EIN with "applied for" status but does not provide the new EIN within 60 days.

Finding A Vendor Code

Finding A Vendor Code

In order to find a vendor code you will need PeopleSoft Access.

Once in PeopleSoft Financials

Go, Administer Procurement, Maintain Vendor
Use, Identifying information
Update/Display

Searching for an individual use the percentage sign (%).

Enter %Last name or vendor name% in the "Name 1:" field and hit Search

(this should yield a list of vendors)

Select the vendor by using the right scroll bar and highlighting the vendor.
If there is more than one vendor with the name you are looking for click the bottom scroll bar to the right and verify the "Vendor Tax Id Number"
Click okay

Adding A New Vendor

Adding A New Vendor

All vendors doing business with or providing a service to the University must complete and return an original W-9 to Accounts Payable or Procurement.

Exception: The IRS will allow the University to accept a faxed copy of a W-9 as a substitute for an original, PROVIDED the top of the fax bears a fax imprint of the name AND fax number of the vendor. The original must follow.

For payment of foreign non-resident alien individuals the W-9 should not be used, please see the Foreign Visitors portion of this web site

Names and FEI's

The vendor will be set up in the vendor file using the name, address and FEI or SSN provided on their completed W-9. If there is more than one payee or the account is in more than one name, on the first name line enter only the name of the recipient whose FEI or SSN is shown on the W-9. For sole proprietors, show the individual's name first and then the name of the business, you may not enter only the business name. Sole proprietors may use either the individual's SSN or the FEI of the business.

Students

To establish a vendor code for a student, simply Fax (413-545-3144) or Email their name, legal address, and Spire ID to the Accounts Payable Vendor File Maintenance. Please note that due to Internal Revenue Service regulations, employees and students are only allowed refund and reimbursement payments through Accounts Payable, any other type of payment must be processed through Human Resources.

Changing A Vendor Code

Names and FEI's

Changes are done the same way as Adding A Vendor

To add a remit address for an existing vendor send an email to vendors [at] admin.umass.edu with the

Name of the Vendor

Vendor Number

The New Remit Address

Corresponding Invoice Number related to the change in remit address

 

Employees and Students

Changes are done the same way as Adding A Vendor

Inactive Vendor Codes

Inactive Vendor Codes

Most inactive vendor codes were set up as a "one time payments". In order to approve an inactive vendor for payment, new paperwork is required with each invoice.

For Foreign Visitors please refer to the Foreign Visitors Guidelines

Unapproved Vendor Codes

Unapproved Vendor Codes

Most unapproved vendor codes have had a change in their tax status. Some of the unapproved vendors will have a new vendor code displayed in the "Name 2" field, if a new W-9 was received. Please use this vendor code for all future payments.

Vendors may be unapproved by the Controller's Office if they have not fulfilled the requirements under the vendor code policy or concerns arrise.

Penalties and Backup Withholding

Penalties are assessed by the IRS for each vendor the University fails to provide the proper information for. The amount of penalty ranges from $15 to $100 per vendor. The following is a list penalties can be given for:

Incorrect FEI or SSN
Missing FEI or SSN
Incorrect or missing name (name must correspond to IRS records)
Illegible forms

Failure of vendors to comply with W-9 requests could result in delay of payment and/or a withholding of about 30%. Vendors are also subject to about 30% backup withholding if any of the following are true:

Vendor does not supply a FEI or SSN
The IRS has notified the University that the vendor has provided an incorrect FEI or SSN ("B" Notice)
The IRS has notified the University that the vendor is subject to backup withholding ("C" Notice)
Vendor has completed the W-9
FEI with "applied for" status but does not provide the new FEI within 60 days.

Emergency Vendor Code Requests

If you need a vendor code sooner than the normal hours of operation, you need contact the Vendor File Maintainer via phone/email.  413-545-4710 or you can email vendors [at] admin.umass.edu (subject: RUSH%20Emergency%20Vendor%20Code%20Request) making sure you add “RUSH” to the subject line on the email. The Vendor file Maintainer will correspond with the department when the vendor has been created.

Letter to Telephone Companies

Letter to Telephone Companies

July 11, 2005

To Whom It May Concern,

We have received notification that several telecommunication system providers have been invoicing the University of Massachusetts for Massachusetts Sales Tax and Federal Excise Tax. Please be aware of the following:

Federal Excise Tax on Telecommunication Services. The University of Massachusetts qualifies for an exemption from the federal excise tax on telecommunication services used exclusively for University business. Nonprofit educational institutions are exempt under Internal Revenue Code Section 4253(j) and state government is exempt under IRC Section 4253(i). Since the University of Massachusetts is a state university, the University is exempt under either code section. In order to claim an exemption under subsection (i) or (j), an exemption certificate should be filed with the provider of the telecommunication services. According to I.R.C. Section 4253 (k), any form of signed statement certifying that the organization is entitled to such an exemption is acceptable. Therefore, this letter constitutes the University of Massachusetts, Amherst, exemption certificate and the University should no longer be billed for Federal Excise Tax. 

Massachusetts Sales Tax on Telecommunication Services. The University of Massachusetts is exempt from sales or use tax on property or services used in furthering the University's exempt purpose. Form ST-2, "Certificate of Exemption," and Form ST-5, "Sales Tax Exempt Purchaser Certificate" are not required of government agencies, but can be sent to vendors requesting proof that the University is exempt from sales or use tax. Copies of the Form ST-2 and Form ST-5 are attached. From this point forward, any invoices from a telecommunication service provider that request payment on sales or use tax will not be paid for the amounts requested.

We are also requesting any provider who has charged the University for the Massachusetts sales tax or use tax in the past, please refund by credit on your next invoice to the university department charged, and provide a document to me on a monthly basis as to accounts that are credited. For a listing of the University of Massachusetts accounts for your telephone company, we would suggest that you speak with your sales representative first.

Should you have any questions or need further evidence of our exemption, please do not hesitate to contact Wendi Warger, Assistant A/P and Travel Manager at 413/545-4710.

Sincerely,

Andrew P. Mangels
Controller
 

1099 Miscellaneous Income

1099 Miscellaneous Income

The University is required to file 1099 Miscellaneous Income information with the Internal Revenue Service each year. The 1099 tax form is sent out before January 31 for the previous year.

Should you have any questions regarding a 1099 that was received by a vendor, please call or have the vendor call 413/545-4710 with the following information:

Vendor Name
Tax Identification Number
Reason for the call

As a general rule, 1099 questions are normally responded to within a 48 hour time frame.

For information about 1099 tax forms please refer to the IRS Web page

Forms

Forms

 Certain forms may require Adobe Reader. 
(Click on Link to select version download).

W-9 Form (PDF - with fill-in ability)

W8-BEN (PDF)

W8-BEN-E (PDF)

W8-ECI (PDF)

W8-EXP (PDF)

W8-IMY (PDF)

The following form is used to add a company or individual to the vendor file and a W-9 needs to accompany this form.

Vendor Add Update Form

The following form is used for Active PeopleSoft (PS) Vendors that need to be added to BuyWays.

BuyWays Vendor Information Form (Word)

Paymode Enrollment