Requisition Update: New Indicator for International Individual Payees
The Purchasing & Payment Services Team has been continuing to work on process improvements for non-catalog requisitions. One of these improvements is to add an indicator for international individuals to the Smart Forms. Additional information on this update is available below and in the recording of the November 30th P2P User Group webcast available here.
New Indicator for International Individual Payees
What is changing and when?
An International Individual indicator has been added to all Smart Forms as of December 3, 2018.
- The indicator will be set to No by default, which will indicate the supplier is not an international individual. Procurement Requesters should toggle the indicator to Yes when an international individual is being paid. Procurement Requesters can verify whether a supplier is an international individual within the Suppliers module in Oracle.
- When the indicator is set to Yes, the International Tax Office (ITO) will be added automatically to the approval workflow so that they can review and approve the payment concurrent with the FUM.
Why is this process changing?
ITO must report to the IRS regarding taxation of payments to international individuals to maintain compliance with IRS regulations.
Adding this indicator allows ITO to be notified automatically to approve those payments and collect the related data. These steps were previously performed outside the Oracle workflow process, requiring additional manual effort and processing time.
What is not changing?
- Supplier Setup in Advance of Requisition: Procurement Requesters will continue to set up all suppliers, including non-PO payment recipients, in advance of the requisition through the Suppliers module in Oracle Cloud. All supplier setup documentation, such as Form W-8 and bank account info, should continue to be included as part of that setup.
- ITO Pre-consultation: The addition of the indicator does not replace consulting with ITO in advance of submitting a payment request for a non-US individual. Procurement Requesters should email email@example.com to discuss payments to non-US individuals and obtain the tax calculations needed to create the Non-PO Payment Request.
- Requisition and Invoice Approvals:
- All Requisitions (including Non-PO Payment requests) will continue to be approved by the Financial Unit Manager(s) and, if over $10k in amount, one or more additional approvers.
- Procurement Requesters will continue to approve the invoices for all non-catalog requisitions and non-PO payment requests before Payment Services issues the payment.
Who should I contact with questions?
If you have questions about payments to international individuals and/or the related taxes, please reach out to: