This issue of the Financial Management Office Newsletter includes information about the following:
- Temporary Hazard Pay Entries in the KFS Labor Ledger
- Reminders on Taxable Income and GET Payments
- Resources
- HOLD THE DATE:
Fiscal Administrator Town Hall Meeting
Wednesday October 23, 2024 10:00am-11:30am
Webinar ID: 968 3386 7248
https://hawaii.zoom.us/j/96833867248 - Financial Management Office Training Modules
- HOLD THE DATE:
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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Temporary Hazard Pay Entries in the KFS Labor Ledger
Target Audience: Fiscal Administrators
The Temporary Hazard Pay (THP) was posted to KFS with the regular payroll on the 10/4/2024 paid date. THP can be identified in the Labor Ledger inquiry screens by selecting entries that do not have a position number (i.e., – – – – – – – -). The THP amount (object code 2026) and any related fringe assessments would not have a position number in the detail labor entry. Regular payroll entries should have a position number specified.
Departments had the opportunity to designate the funding source for THP, however, if necessary, the KFS Salary Transfer (ST) can be used to transfer the THP to a different account. The ST should automatically include the related fringe assessments. The Labor Ledger Pending Entries can be viewed to confirm the included amounts.
If you have any questions regarding the THP posting, please contact General Accounting at uhgalc@hawaii.edu.
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Reminders on Taxable Income and GET Payments
Target Audience: Fiscal Administrators and Fiscal Support Staff
- The word “stipend” is often misunderstood as “scholarship”. Stipend is a payment. The purpose and circumstances for a stipend will dictate whether the stipend should be scholarship or taxable income.
- Payment for “M & IE” (meals and incidental expenses) should only be paid to employees or independent contractors. It is inappropriate for M & IE to be calculated for other people or vendors who are not employees or independent contractors.
- Payments to students for doing tasks at the University of Hawai’i (UH) should be considered as income to the student. Whereas, payments to students with no expectation of doing work in return, is generally a scholarship and not reported as taxable income.
- The University of Hawai’i (UH) does not pay general excise tax (GET) on its revenue. However, for purchases, UH generally pays GET if the seller (vendor) is licensed to do business in Hawaii. To ensure UH is not being overcharged, ask the seller (vendor) if they have a GET license and if they don’t, ask the seller (vendor) for a revised invoice that excludes GET.
- When vendors ask UH for tax exempt certificate, they are asking for a document that would support UH being exempt from paying general excise tax. UH is not exempt from paying general excise tax on purchases when vendors have general excise license. Therefore, in most circumstances, UH does not qualify to seek tax exempt certificates. Confirm with vendors to ensure that they have general excise tax license. Otherwise, this could cause an overcharge by vendors unnecessarily.
Should you have any questions on this topic, please contact Kenneth Lum at kenlum@hawaii.edu.