This issue of the Financial Management Office Newsletter includes information about the following:
- Quarterly Interest Rate for Late Vendor Payments
- 2023 Payroll Deadlines
- 2022 W-2s Distribution
- 2023 Federal Allowable Mileage Rates
- Updated UH WH-1 Form for 2023
- Case Study: Stipends Paid to Students, Income or Not Income?
- Resources
The Financial Management Office Newsletter is distributed monthly. Should you have any questions about this newsletter, contact Amy Kunz via email: 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 1st 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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2023 Payroll Deadlines
Target Audience: Fiscal Administrators and Human Resources Specialists
The 2023 Payroll deadlines have been uploaded to the Payroll website, under the Overview tab – Payroll AO/PO section. To view the 2023 deadlines, please visit here or click on the links below.
Payroll Deadlines (After-the-Fact)
For more information, please contact the Payroll Office at payroll@hawaii.edu.
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2022 W-2s Distribution
Target Audience: All
Per DAGS, we are expecting W-2s to be available by January 26, 2023. Employees who opted out of paper should be able to see their W-2s online a few days in advance of paper distribution.
This year, the UH Payroll Office will be providing a listing of employees (sorted by warrant distribution codes) who received a paper W-2 as well as employees that provided consent to opt out of paper. Employees that have terminated employment with the State would receive a paper W-2 even if they opted out of paper because their access to HawaiiPay has been removed.
For any questions, please contact the Payroll Office at payroll@hawaii.edu.
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2023 Federal Allowable Mileage Rates
Target Audience: Fiscal Administrators
Effective January 1, 2023, the Federal allowable standard mileage rate for business has increased to 65.5 cents per mile. Business mileage claims of 65.5 cents per mile are to be processed on the Personal Automobile Mileage Voucher, DISB-33. The form DISB-33 can be found on the Travel Forms page.
To view the notice, please visit here. For more information, please call the Disbursing Office at (808) 956-5535.
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Updated UH WH-1 Form for 2023
Target Audience: Administrative Officers, Fiscal Administrators, Business Office Staff
The revised 2023 UH WH-1 Form has been posted to the Disbursing Page under the Forms tab on our FMO website.
A new section has been added, Section B.4., which specifically applies to students on F, J, M, or Q visa.
Students on such visas are exempt from counting days in the first 5 calendar years for the IRS Substantial Presence Test (Section C of WH-1). These 5 calendar years are lifetime exemptions, so if the student was in the US many years ago on such visas, thus not reflected on Section B.3., they would need to enter those days in the new Section B.4.
All previous versions of this form should be discarded. Please update your forms accordingly.
Should you have any questions, please contact Donnie Feng, Disbursing Office at donnie@hawaii.edu.
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Case Study: Stipends Paid to Students, Income or Not Income?
Target Audience: Fiscal Administrators and Staff
Case Info:
“Stipends’” were paid to two art students who were hired part-time to assist faculty with construction of mixed media work. This mixed media work was on display at the UH Hilo Art Studio for three months in 2022. Would stipends paid for this work be considered income?
Analysis:
Based on facts above, the “stipends” paid would be income to the art students who worked on the mixed media work for the UH Faculty.
The stipends paid in this situation would not be considered scholarship because stipends were paid to art students for the work they performed and this was not payment for the purpose of their studies. By IRS definition, “scholarship” is generally an amount paid or allowed to a student at an educational institution for purpose of study. Accordingly, stipends paid for work performed would not be considered as scholarship. These stipends are income and reportable to the students.
Should you have any questions on this topic, please contact Kenneth Lum at kenlum@hawaii.edu.