Vendor Management is responsible for creating, updating and verifying suppliers while adhering to the policies and procedures set forth by the University. Compliance with policies and procedures will ensure all transactions can be processed in a timely and efficient manner.

Vendor Management provides assistance by:

  • Adding new suppliers
  • Updating suppliers
  • IRS Tax Form Requests
  • Processing and distributing 1099

All new suppliers or inactive suppliers that need to be reactivated are processed via eProcurement. To ensure proper documentation and workflow, use the guide below. Incomplete or illegible documentation will cause delays or rejection. 

  • “Vendors” will now be referred to as Suppliers to reflect the same naming in eProcurement.
  • Supplier IRS and banking information can be emailed to [email protected] for updates.
  • New Suppliers requests must include a description of goods or services provided on the REQ line(s). A quote is an example of good documentation. Requests without documentation will be rejected.
  • Submit all paperwork through eProcurement as individual documents.
  • Out of date documentation will no longer be accepted. Use the links in the guide and do not save documents to the department or employee drive. Example: 2004 W9 IRS form does not have the correct classifications. These cause too much delay and confusion.

If you would like to set up a new vendor in the system, we must have certain documentation to register them in the system. The information needed helps us comply with the Internal Revenue Service and pay the vendor in the most economical way. Direct deposit and wire information forms are available upon request to [email protected]

 Type of Supplier  Tax Form and Other Information Needed
Domestic Individual or Entity W9/W9 UTD Substitute Form
Direct Deposit information (for a US Bank) – this form is available upon request from [email protected].
Domestic Guest/Student/Faculty Reimbursement
or Relocation (prior to onboarding)
Name
Mailing Address
Direct Deposit
UTD-ID For Students Only

 

All payments made by UT Dallas to foreign individuals or foreign entities must follow both immigration and IRS tax rules and be reviewed by the Tax Compliance Office. Depending on the category of payment, special documentation is required when making payments to foreign suppliers. Certain payment categories are subject to federal income tax withholding and nonresident alien tax reporting.

To ensure compliance with IRS regulations, please follow the instructions below and send required information and documents to the Tax Compliance Office based on the payment type category.

Tangible/physical goods purchased from a foreign supplier are not subject to federal income tax withholding. However, if there is a service component associated with the purchase which takes place in the U.S., such as on-site installation or training, payment for such a component will be treated as a payment for services performed in the U.S. and subject to 30% federal income tax withholding, unless the foreign supplier can claim an income tax treaty exemption.

Payment Procedures:

Please send the following items to [email protected].

  1. Quotation/invoice received from the foreign supplier
  2. An official bank letter (in English) showing the foreign suppliers’ bank account information, such as account name, account number, IBAN No., SWIFT code, bank address, etc.
  3. Completed and signed W-8BEN (for foreign individual) or W-8BEN-E (for foreign entity)

After receiving the above documentation the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

Instructions about Form W-8BEN and Form W-8BEN-E:

Form W-8BEN (for foreign individual):

  • Part I Identification of Beneficial Owner:
    • Required fields: Line 1, Line 2, Line 3
    • Optional fields: Line 4 (mailing address), Line 5 (U.S. taxpayer ID), Line 6 (taxpayer ID in the tax residency country)
  • Part III Certification:
    • All fields (signature, printed name, date) are required.

Form W-8BEN-E (for foreign entity):

  • Part I Identification of Beneficial Owner (Page 1):
    • Required fields: Line1, Line 2, Line 4, Line 6
    • Optional fields: Line 7 (mailing address), Line 8 (U.S. taxpayer ID), Line 9b (taxpayer ID in the country of incorporation/organization)
  • Part XXX Certification (Page 8):
    • All fields (checkmark, signature, printed name, date) are required.

Payments for services performed outside the U.S. are considered foreign source income and not subject to federal income tax withholding.

Payment Procedures:

Please send the following items to [email protected].

  1. Description of the payment
  2. Completed and signed Statement for Services Performed Outside the U.S.: Statement for Foreign Individual, Statement for Foreign Entity
  3. An official bank letter (in English) showing the foreign suppliers’ bank account information, such as account name, account number, IBAN No., SWIFT code, bank address, etc.
  4. Completed and signed W-8BEN (for foreign individual) or W-8BEN-E (for foreign entity)

After receiving the above documentation the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

Instructions about Form W-8BEN and Form W-8BEN-E:

Form W-8BEN (for foreign individual):

  • Part I Identification of Beneficial Owner:
    • Required fields: Line 1, Line 2, Line 3
    • Optional fields: Line 4 (mailing address), Line 5 (U.S. taxpayer ID), Line 6 (taxpayer ID in the tax residency country)
  • Part III Certification:
    • All fields (signature, printed name, date) are required.

Form W-8BEN-E (for foreign entity):

  • Part I Identification of Beneficial Owner (Page 1):
    • Required fields: Line1, Line 2, Line 4, Line 6
    • Optional fields: Line 7 (mailing address), Line 8 (U.S. taxpayer ID), Line 9b (taxpayer ID in the country of incorporation/organization)
  • Part XXX Certification (Page 8):
    • All fields (checkmark, signature, printed name, date) are required.

Payments for services performed in the U.S., including guest speaker fees, honorariums, consulting fees, etc., are considered U.S. source income and subject to 30% federal income tax withholding, unless the foreign supplier can claim an income tax treaty exemption.

Foreign suppliers who will receive payments for services performed in the U.S. from UT Dallas are required to complete the tax compliance process. Before sending the required items to the Tax Compliance Office to start the tax compliance process, please refer to the below to make sure the foreign supplier is eligible to receive service payments under immigration rules.

Service Payments to Foreign Suppliers Matrix

Visa Type Definition of Visa Independent Contractor Honorarium
B-1, B-2, Visa Waiver
Business, Visa Waiver Tourism
Visitor No Yes, with Restriction A
F-1
UTD Sponsored
Student No Yes, with Restriction B
F-1
Non-UTD Sponsored
Student No Yes, with Restriction C
J-1 Scholar
UTD Sponsored
Exchange
Visitor
(Scholar)
Yes, with Restriction B Yes, with Restriction B
J-1 Scholar
Non-UTD Sponsored
Exchange
Visitor
(Scholar)
Yes, with Restriction C Yes, with Restriction C
J-1 Student
UTD Sponsored
Exchange
Visitor
(Student)
No Yes, with Restriction B
J-1 Student
Non-UTD Sponsored
Exchange
Visitor
(Student)
No Yes, with Restriction C
H-1B, O-1
UTD Sponsored
Temporary Worker in Specialty Occupation No Yes, with Restriction D
H-1B, O-1
Non-UTD Sponsored
Temporary Worker in Specialty Occupation No No
TN
UTD Sponsored
NAFTA Professional Worker No Yes, with Restriction D
TN
Non-UTD Sponsored
NAFTA Professional Worker No No
All Other Visas Please contact the Tax Compliance Office

 

Restriction A: Must meet the 9/5/6 Rule: foreign nationals entering the U.S. in B-1, B-2, VWB, and VWT status may accept an honorarium and/or reimbursement of travel expenses for “usual academic activity or activities” if staying no more than 9 days at UT Dallas and if the individual has accepted such payment from no more than 5 educational or research institutions (including UT Dallas) in the prior 6 months.

Restriction B: Requires written authorization from UT Dallas International Student Services Office (ISSO) or Human Resources (HR).

Restriction C: Requires written authorization from the sponsoring university’s SEVIS designated school official (DSO).

Restriction D: Must be for work relevant to primary position at UT Dallas. Approval from UT Dallas Human Resources (HR) is required.

Payment Procedures:

If the payment is allowed per the above, please send the following items to [email protected]. The Tax Compliance Office will contact the foreign supplier to start the tax compliance process.

  1. Name of foreign supplier
  2. Email address of foreign supplier
  3. Description of the payment
  4. Payment amount

Once the tax compliance process is completed the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

Business expense reimbursements that meet the IRS accountable plan requirements are not considered taxable income to foreign suppliers, and are exempt from federal income tax withholding. To meet the IRS accountable plan requirements, the expenses incurred must have a business purpose for UT Dallas and the original receipts must be submitted to UT Dallas within 60 days.

Payments for expenses not related to the conduct of business on behalf of UT Dallas will not be classified as business expense reimbursements, and will be considered taxable income to the foreign supplier. Please refer to appropriate section on this page for more information related to the particular payment category.

Travel payment or travel reimbursement is not a payment category under IRS tax rules. The payment category with respect to travel payments or travel reimbursements must be determined first. If the reason why UT Dallas is making the travel payment or reimbursement is mainly for the benefit of UT Dallas, then the travel payment may fall under “Business Expense Reimbursements” payment category. If the travel payment is mainly for the benefit of the foreign supplier, the travel payment may fall under “Scholarships and Fellowships” payment category or “Services Performed in the U.S.” payment category.

Payment Procedures:

Please send the following items to [email protected].

  1. Description of the payment
  2. An official bank letter (in English) showing the foreign suppliers’ bank account information, such as account name, account number, IBAN No., SWIFT code, bank address, etc.
  3. Completed and signed W-8BEN (for foreign individual) or W-8BEN-E (for foreign entity)

Once the above documentation are received the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

Instructions about Form W-8BEN and Form W-8BEN-E:

Form W-8BEN (for foreign individual):

  • Part I Identification of Beneficial Owner:
    • Required fields: Line 1, Line 2, Line 3
    • Optional fields: Line 4 (mailing address), Line 5 (U.S. taxpayer ID), Line 6 (taxpayer ID in the tax residency country)
  • Part III Certification:
    • All fields (signature, printed name, date) are required.

Form W-8BEN-E (for foreign entity):

  • Part I Identification of Beneficial Owner (Page 1):
    • Required fields: Line1, Line 2, Line 4, Line 6
    • Optional fields: Line 7 (mailing address), Line 8 (U.S. taxpayer ID), Line 9b (taxpayer ID in the country of incorporation/organization)
  • Part XXX Certification (Page 8):
    • All fields (checkmark, signature, printed name, date) are required.

A scholarship is an amount paid or allowed to, or for the benefit of, a student, whether an undergraduate or graduate, to aid such individual in pursuing his studies. A fellowship is an amount paid or allowed to, or for the benefit of, an individual to aid him in the pursuit of study or research. Scholarship and fellowship payments are subject to either 14% or 30% federal income tax withholding, unless the foreign supplier can claim an income tax treaty exemption.

Scholarships and fellowships paid to UTD students must be processed through the Office of Financial Aid. For non-UTD individuals, please refer to the below to make sure the foreign individual is eligible to receive scholarship and fellowship payments under immigration rules.

Visa Type Definition of Visa UTD Scholarship or Fellowship
B-1, B-2, Visa Waiver
Business, Visa Waiver Tourism
Visitor No
F-1
UTD Sponsored
Student Yes
F-1
Non-UTD Sponsored
Student Yes
J-1 Scholar
UTD Sponsored
Exchange
Visitor
(Scholar)
Yes, with Restriction E
J-1 Scholar
Non-UTD Sponsored
Exchange
Visitor
(Scholar)
Yes, with Restriction E
J-1 Student
UTD Sponsored
Exchange
Visitor
(Student)
Yes
J-1 Student
Non-UTD Sponsored
Exchange
Visitor
(Student)
Yes, with Restriction C
H-1B, O-1
UTD Sponsored
Temporary Worker in Specialty Occupation No
H-1B, O-1
Non-UTD Sponsored
Temporary Worker in Specialty Occupation No
TN
UTD Sponsored
NAFTA Professional Worker No
TN
Non-UTD Sponsored

NAFTA Professional Worker

No
All Other Visas Please contact the Tax Compliance Office

 

Restriction C: Requires written authorization from the sponsoring university’s SEVIS designated school official (DSO).

Restriction E: Can only receive non-student fellowship payments to support J-1 scholars’ own research activities. Non-UTD sponsored J-1 scholars require written authorization from the sponsoring university’s SEVIS designated school official (DSO).

Payment Procedures:

If the payment is allowed per the above, please send the following items to [email protected]. The Tax Compliance Office will contact the foreign supplier to start the tax compliance process.

  1. Name of foreign supplier
  2. Email address of foreign supplier
  3. Description of the payment
  4. Payment amount

Once the tax compliance process is completed the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

Prizes and awards are typically gifts of cash, gift cards, gift certificates, or other cash equivalents bestowed on individuals in recognition of outstanding achievement in teaching, research, academic performance or other performance-related activities. Prize and award payments are subject to 30% federal income tax withholding and an income tax treaty exemption is not generally applicable for prizes or awards.

Please refer to the below to make sure the foreign individual is eligible to receive prize and award payments under immigration rules. Prize and award payments made to UTD students may qualify as a scholarship or fellowship payment if it is to aid students in paying for their study, training, or research. If this is the case, please refer to “Payment for Scholarships and Fellowships” section and contact the Office of Financial Aid to process the payment.

Visa Type Definition of Visa UTD Prize or Award
B-1, B-2, Visa Waiver
Business, Visa Waiver Tourism
Visitor Yes
F-1
UTD Sponsored
Student Yes
F-1
Non-UTD Sponsored

Student

Yes
J-1 Scholar
UTD Sponsored
Exchange
Visitor
(Scholar)
Yes
J-1 Scholar
Non-UTD Sponsored
Exchange
Visitor
(Scholar)
Yes, with Restriction C
J-1 Student
UTD Sponsored
Exchange
Visitor
(Student)
Yes
J-1 Student
Non-UTD Sponsored
Exchange
Visitor
(Student)
Yes, with Restriction C
H-1B, O-1
UTD Sponsored
Temporary Worker in Specialty Occupation Yes
H-1B, O-1
Non-UTD Sponsored
Temporary Worker in Specialty Occupation No
TN
UTD Sponsored
NAFTA Professional Worker Yes
TN
Non-UTD Sponsored

NAFTA Professional Worker

No
All Other Visas Please contact the Tax Compliance Office

 

Restriction C: Requires written authorization from the sponsoring university’s SEVIS designated school official (DSO).

Payment Procedures:

If the payment is allowed per the above, please send the following items to [email protected]. The Tax Compliance Office will contact the foreign supplier to start the tax compliance process.

  1. Name of foreign supplier
  2. Email address of foreign supplier
  3. Description of the payment
  4. Payment amount

Once the tax compliance process is completed the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

A royalty is the payment for the right to use intangible property. Some examples of royalties are: copyright fee of a work of art, license fee of a software program, subscription fee of a database, etc. Royalties are sourced based on the location of where the royalty is exercised. Payments for royalties used outside the U.S. are considered foreign source income and not subject to federal income tax withholding. Payments for royalties used in the U.S. are considered U.S. source income and subject to 30% federal income tax withholding, unless the foreign supplier can claim an income tax treaty exemption.

Payment Procedure:

Please send the following items to [email protected]. The Tax Compliance Office will contact the foreign supplier to start the tax compliance process.

  1. Name of foreign supplier
  2. Email address of foreign supplier
  3. Description of the payment
  4. Payment amount
  5. Location of where the royalty will be used

Once the tax compliance process is completed the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

If a payment doesn’t fit into one of the payment categories described above, please send the following items to [email protected]. The Tax Compliance Office will determine the payment category and contact the foreign supplier to start the tax compliance process. If a payment doesn’t fit in a particular income category, it generally is subject to 30% federal income tax withholding and will not qualify for an income tax treaty exemption.

  1. Name of foreign supplier
  2. Email address of foreign supplier
  3. Description of the payment
  4. Payment amount

Once the tax compliance process is completed the Tax Compliance Office will work with Vendor Management to set up the foreign supplier profile.

The way that names are capitalized in the vendor database will assist you in knowing if the vendor is an employee, student or external vendor.  Non-employees are listed with the first name first and in mixed cases as shown below.  Employees are in mixed cases with the last name first.  External suppliers are always done in all caps.

Type Example
Student (non-employee) John Smith
Supplier (W9, W8BEN, W8BENE) JOHN SMITH
Employee Smith, John

To pay an individual for services, log in into eProcurement and complete the form called “Independent contractor”.  Completion of the form will create a requisition.  The form should be set up for the length of service you expect to pay the vendor.  All new vendors will need to be set up prior to the requisition. Approvals must be completed before any services begin for the University.

Common uses of this form include DJs, individual photographers, speakers, honorariums, athletic and tournament coaches, piano repair, art models, bands and facilitators.  No companies or employees can be paid on this form.

Since most of the vendors for this activity do not have invoices, Departments must create Cost Receipts when payment is required.  Payment Services will then create the invoice based on the receipt.

For questions contact [email protected] or 972-883-2300

The State of Texas puts vendors on hold and it will make the vendor inactive until the vendor resolves their issues with State Comptroller. Texas Government Code 403.055 prohibits a state agency from issuing payment to an individual or business that is indebted to the State of Texas. Once the University is aware the Taxpayer ID Number (TIN) is on “payment hold” status at the State Comptroller’s office, UT Dallas as a state agency is unable to complete the order until the vendor is no longer on hold. The vendor will need to contact the State Comptroller’s Office at (800) 531-5441 ext. 34561 for further details on the hold status. When the matter has been resolved, UT Dallas can continue business as usual.