The A-114 should not be used for transactions which should be made through
regular purchasing channels or through the payroll system or on Purchasing Card,
Small Order
Forms, travel reimbursements, or for invoiced purchases.
These following items are prohibited from being
reimbursed using an A-114: delinquent fees, billing fees, interest penalties,
personal items which are lost or stolen, alcoholic beverages.
PROCEDURES:
The A-114 form must be completed and accompanied by an original receipt. In
cases where an original invoice is not available, a signed statement detailing
the reimbursement can be used. A-114's for less than $2000 must be signed by the
initiator and the department head or designee and forwarded to Accounts Payable.
A-114's for $2000 and more must be signed by the department head or designee and
the Vice President unless an approved Personal Service Contract is attached, before forwarding to Accounts Payable.
Payments
Under Personal Service Contracts
Compensation payments under
an approved personal service contract (PSC) no longer require vice presidential
approval, regardless of the amount. The
payments must be within the terms listed on the PSC. The requirement for two signatures on the A-114 must still be
met – signature of the initiator and the approval signature
A-114's payable to individuals for purchases of over $2000 on any one invoice
must have the approval of the Director of Purchasing. (These items are
considered major purchases that should/could have been part of the bidding
process.)
The University of Cincinnati is tax exempt. Most local business firms have a
blanket tax exemption certificate on file. To avoid being taxed, an A-117,
Certification of Exemption Form should be used.
Special Provisions for Compensation Payments
 | The purchase of services from
individuals (not firms or corporations) is accomplished through the use of
the Personal Services Contract, Form A-127. To pay an individual on a
Personal Services Contract, the contract number must be referenced on
the A-114 form and a copy of the approved Personal Services Contract must be
attached. |
| An honorarium is a single,
lump sum payment to a non-employee in return for a particular service
performed on a one-time basis that would not normally be considered as
employment related. A typical service is a speaker presenting a seminar. A
copy of the announcement of the seminar, symposium, or event at which the
individual participated and the Limited Service Form should be attached to the A-114 form. |
| Payments made to individuals
for their services are considered taxable income and should be paid directly
to the individual who provided the service. Such payments will be reported
to the IRS if payments exceed an aggregate of $600 per calendar year. A
complete mailing address and social security number are required on the
A-114 form. IRS regulations require that a 30% income tax be withheld under
the following circumstances: |
- The individual's social
security number is not provided.
- The individual is a
non-resident alien where their home country does not have a tax treaty
with the United States government.
