Non-Salary Payments Policy

Effective Date:

August 15, 2016

Supersedes:

N/A

Policy Review Date:

2 years from effective date

Issuing Authority:

Research Foundation President

Responsible Party:

Chief Financial Officer

Contact Information:

518.434.7050

rffinance@rfsuny.org

Reason for Policy

This policy seeks to ensure that the Research Foundation for The State University of New York ("RF") is compliant with applicable Internal Revenue Service ("IRS") rules when providing Non-Salary Payments to employees, such as gift cards and allowances. See "Taxation and Reporting for Non-Salary Payments– Guideline" for other common examples. Royalty payments made to an individual pursuant to SUNY’s Patents and Inventions Policy are not subject to the requirements of this Policy.

Statement of Policy

Documentation and Valuation Responsibilities

Non-Salary Payments can be provided to RF or The State University of New York ("SUNY") employees and must be consistent with any applicable sponsor requirements. Prior to providing the Non-Salary Payments to the employee, campus administrators must identify the amount or value of the Non-Salary Payment, determine if the same is taxable, reportable, if withholdings are required, and must maintain certain documentation concerning the Non-Salary Payments as set forth in the "Taxation and Reporting for Non-Salary Payments - Procedure." Operation Managers ("OM") or their designees must regularly monitor Non-Salary Payments for any personal use by an employee.

SUNY Employees

In addition to the reporting and withholding determinations described above, when RF provides Non-Salary Payments to a SUNY employee such provisions must be approved by appropriate SUNY Staff and the OM or their delegate. Note that these additional payments may require additional approval and reporting on the state side, internally to the campus Ethics Officer, and externally to the New York State’s Ethics agency, the Joint Commission on Public Ethics, especially for those who are required to file an Annual Financial Disclosure Statement to JCOPE to report their earnings.

Responsibilities

The following table outlines the responsibilities for compliance with this Policy:

Responsible Party

Responsibility

Operating Location

Determine the value of the amount subject to tax and reporting rules

Operation Manager or delegate

Regularly monitor provision of Non-Salary Payments or business expenses for any personal use

Definitions

Employee - an individual engaged to provide services to an organization where the organization controls what services are performed and how they are performed.

Non-Salary Payments– Amounts paid or provided to RF or SUNY employees outside the payroll process. For illustration purposes, see "Taxation and Reporting for Non-Salary Payments – Guidelines" and common examples

Reportable – Income required to be reported to the IRS on a year-end tax statement.

Related Information

RF

Taxation and Reporting for Non-Salary Payments Procedure

Taxation and Reporting for Non-Salary Payments Guidance

Unrestricted Fund Expense Policy

Compensation Reporting Guidelines

Internal Revenue Service

IRS 15-B Employers Tax Guide to Fringe Benefits

IRS Publication 5137 Fringe Benefit Guide

Forms

Non-Salary Payments Determinations

Change History

Date

Summary of Change

August 15, 2016

New policy.

 

 

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