This issue of the Financial Management Office Newsletter includes information about the following:
- Quarterly Interest Rate for Late Vendor Payments
- REMINDER: Disbursing and Travel Forms
- Past Due Installment Plan Changes
- Bank of Hawai‘i Deposit Slips for University of Hawai‘i General Account
- Prizes, Awards and Gifts: What You Need to Know
- Resources
The FMO Newsletter is distributed monthly. Should you have any questions about this newsletter, contact Amy Kunz via email at amykunz@hawaii.edu.
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Quarterly Interest Rate for Late Vendor Payments
Target Audience: Fiscal Administrators and Fiscal Support Staff
Pursuant to Section 103-10 of the Hawai`i Revised Statutes, the interest rate for obligations related to goods delivered or services performed remaining unpaid after 30 days is equal to the prime rate for each calendar quarter plus two percent. The interest rate is adjusted quarterly using the prime rate as posted in the Wall Street Journal on the first business day of the month preceding the calendar quarter. Please refer here for the 4th quarter interest rate and calculation.
Should there be any questions regarding this change, please call the Disbursing Office at (808) 956-5535.
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REMINDER: Disbursing and Travel Forms
Target Audience: Fiscal Administrators and Staff
Due to COVID-19 and the restrictions placed on travel we wanted to remind those that are now traveling to please use the most updated Disbursing and Travel forms when processing payments. All of the forms listed below have been updated for ADA compliance and include digital signature fields. You may electronically sign these forms using an Adobe Acrobat DC Self-Signed Digital ID. (Instructions to create a Self-Signed Digital ID can be found at https://www.hawaii.edu/askus/1810#create.)
The following Disbursing forms can be found on the Disbursing Forms page on the FMO website.
DISB-17A Employee Relocation Allowance Worksheet for W-2 Reporting of Moving Exp.
DISB-17B Relocation Allowance, Receipt, Acknowledgement & Agreement Statement
DISB-41 Lease/Rent Payment Form
DISB-ACH Electronic Funds Transfer Authorization
DISB-37 Special Check Distribution Request.pdf
DISB-45 Certification of Academic Activity for Foreign Visitors
DISB NE-INV Non-Employee Invoice
UH WH-1 WH-1 Statement of Citizenship & Federal Tax Status
DISB-WIRE Wire Transfer Form
DISB-15 Employee Mobile Device Program
The following Travel Forms can be found on the Travel Forms page on the FMO website:
DISB-4 Travel Form
DISB-4C Per Diem/M&IE/Lodging Tax Calculation Worksheet
DISB-4D Receipt Summary Worksheet
DISB-33 Personal Automobile Mileage Voucher
Questions can be directed to JR Kashiwamura at jkashiwa@hawaii.edu.
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Past Due Installment Plan Changes
Target Audience: All
The introduction of monthly and bi-weekly installment plans of 3-, 6-, 12-, and 18-month options began in Spring 2020 to facilitate the collection of past due financial obligations for students not able to pay past due financial obligations in a lump sum. The initial set up of these plans were cumbersome since the plans had to be established and linked to each individual term and having a past due installment plan for each specific term quickly became unmanageable.
Moving forward to Fall 2021, the past due installment plan will be enhanced through the introduction of a “dummy” term which will eliminate the requirement to collect past due balances per each specific term and allows for students to enroll in the repayment plan with balances up to 7 years old. Through the collection notification process, students will be instructed to contact the collection specialist or cashier to pay the past due financial obligation and, based on repayment ability of the student, an option for repayment using the past due installment plan could be offered. Support for enrollment into one of these plans will be provided through the assistance of the collection specialist or cashier and the student will be given instructions to activate their MyUH account, access the online process and set up the installment plan suited to their financial ability for payment the past due financial obligation. The past due installment plans will remain as monthly or bi-weekly and will still be offered at the 3-, 6-, 12-, and 18- month options.
The new structure for the past due installment plans will begin after Fall 2021’s current installment plan has completed (November) since other plans are already in place. The new past due installment plan options will be available for students that have not previously established a past due payment plan that was linked based on term.
Please contact Denise DeArment with any questions at dearment@hawaii.edu.
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Bank of Hawai‘i Deposit Slips for University of Hawai‘i General Account
Target Audience: All
The bank deposit slips for the University of Hawai‘i General Account were updated many years ago to reflect the proper Bank of Hawai‘i (BOH) deposit routing number (514011116) on the magnetic ink character recognition (MICR) line at the bottom of the deposit slip. However, BOH has notified the Treasury Office that the old deposit slips, which includes the routing number 121301028 in the MICR line, were recently used. Please check your deposit slip supply and if you have any outdated deposit slips with routing number 121301028, please destroy and discard.
We have included an image of deposit slip with the current routing number highlighted:
You may request deposit slips by completing and submitting the Request for Disposable Moneybags and Bank Deposit Slips form to the Treasury Office.
Please note that the 514011116 deposit routing number is only applicable for the physical BOH deposit slips. BOH’s routing number, 121301028, should continue to be used to identify BOH for electronic funds transfers and will be reflected on the MICR line on checks issued from BOH accounts.
If you have any questions, please contact Joanne Yama at jyama@hawaii.edu.
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Prizes, Awards and Gifts: What You Need to Know
Target Audience: Fiscal Administrators and Staff
This information was previously posted in the September 2019 newsletter but is being posted again as a reminder on how to handle these frequently occurring situations.
The Internal Revenue Code states that under certain circumstances the value of prizes and awards/gifts to individuals is considered taxable income. Merchandise or products won as a prize or award will be considered at the fair market value and could also be considered taxable income. Nonresident aliens may be subject to additional tax rules regardless of amount, depending on circumstances and treaty status.
IRS regulations stipulate that for employees who receive any gift of cash, gift card, gift certificate or cash equivalent, (an item that is easily converted into cash) for reasons related to their employment, such as employee appreciation, service awards, etc., it must be included in the recipient’s gross income since it is considered extra salary or wages, regardless of amount awarded or won. This would also pertain to a tangible award/gift as well, such as a computer, bike, DVD player, etc. The fair market value of that gift would be included in the employee’s gross income as well and reported on their W2 form.
If an employee wins a prize or award/gift that is for a reason other than related to employment and the contest, (e.g. program or raffle) is open to the general public, then the prize and award/gift amount will be treated as 1099 income. The recipient will receive a Form 1099-MISC from UH on any winnings totaling over $600.00 in a calendar year. The recipient will also be required to provide UH with a completed W-9 form or WH-1, which includes social security number, to be used for issuing a 1099 for tax purposes, as well as signing a prize/award acceptance form.
Nonresidents aliens (non U.S. Citizens), including international student workers, may be subject to additional tax rules depending on circumstances and treaty status and benefits. Where applicable, taxable income will be reported on Form 1042-S and may be subject to 14 – 30% withholding.
Should you have any questions on this topic, please contact Kenneth Lum at kenlum@hawaii.edu.