GETTING ESTABLISHED FOR PAYMENT – VENDOR RECORDS
There are many considerations to take into account when establishing a relationship with JMU. Depending on what good/services (and how much) are being provided, a vendor may need to be set up in the State’s procurement system (eVA) and/or JMU’s PS Finance system.
Vendors Records
Information related to the Procurement Process, SWaM designations, and eVA registration can be found on Procurements website: https://www.jmu.edu/procurement/vendors.shtml
SWaM Vendors: New Vendors are also encouraged to self-register with eVA, Virginia’s procurement portal, and to participate in the Commonwealth’s SWaM program, if applicable.
eVA Registration: Vendors should register with the state procurement system, eVA, which provides vendors with access to many services and tools including automated placement on bidders list and email/fax notifications for business opportunities with Virginia State Agencies, Colleges and Universities, as well as many Local Governments.
Only an employee of JMU can request that a vendor be established for payment.
The following methods should be used.
- Procurement Services – When contracting with vendors, the Procurement Services office will often obtain a CoVA W-9 as a part of the contracting process. This document is forwarded to the Accounting Technology office for set-up.
- Departmental Webform – In an effort to centralize the collection of W-9s and reduce the risk of highly confidential data being stored in departments, this webform was created. Departments should first search the PS Finance system to determine if the vendor already exists. Instructions are located here.
If the vendor doesn’t exist (or is inactive), use the webform to request that a vendor be established/reactivated in PS Finance by the Accounting Technology Office. The request will kick off an email to the vendor requesting completion of a CoVA W-9.
After the W-9 is submitted by the vendor, it will be set up in the PS Finance system. The Vendor ID number will be communicated to departmental requestor via email. The Vendor ID number should be used on all payment paperwork in lieu of a Taxpayer Identification Number (EIN / SSN).
- Departmental Bulk Request – For departments that have a need to set up more than 30 vendors at a time, please coordinate the collection of the CoVA W-9s with the Accounting Technology Office. They can be reached at the following email address.
- Non-employee Vendors – There are situations in which an individual may need to receive a one-time reimbursement related to a business activity, but are not providing goods/services to the University. Examples include employment candidates, prospective student athletes, etc. In these situations, complete a ‘Non-Employee Vendor’ form to have the individual setup as a vendor to be made available in the Chrome River system.
The Commonwealth of Virginia, of which James Madison University (JMU) is an agency,
only accepts the attached substitute version of the IRS W-9 form. It does NOT accept the
IRS version or any previously accepted versions of the JMU substitute W-9.
The Commonwealth of Virginia Department of Accounts (DOA) has mandated that JMU does NOT have legal authority to remit payment to any vendor who has not submitted the Commonwealth of Virginia substitute version.
Please note JMU does NOT have legal authority to remit payment to you unless this form is completed in
entirety and remitted to the university.
Existing Vendors must submit a new W-9 in order to update their address.
If you have any questions regarding W-9 submission please call (540) 568-2941.
TIN MATCHING – One of the first things we do with the CoVA W-9 is run it through the IRS Tin Match program. The TIN number and Legal name provided on the W-9 must match the information on file with the IRS. If the information doesn’t match, a representative from the Accounting Technology team will reach out to the vendor to make them aware. Check the W-9 completed to confirm that the correct TIN and Legal name was provided. If you believe the information provided is correct, the vendor will need to contact the IRS directly at (866) 255 – 0654. JMU is unable to contact the IRS on behalf of a taxpayer to help resolve any issues.
All vendor records are defaulted to be paid via check when first setup, however, the University does offer several methods of electronic payment options for vendors to enroll in.
For Businesses:
JMU’s preferred payment method to businesses is to use the University’s Small Purchase Charge Card. This should be used for invoices of less than $10,000 (that are not late payments). In these situations, a vendor record does not need to be established in the PS Finance system.
When a Small Purchase Charge Card cannot be used, businesses have two electronic payment options available to enroll in: Paymode-X ACH Payment or Virtual Payables Commercial Card Payment. Both options are discussed in additional detail here: https://www.jmu.edu/financeoffice/accounting-operations-disbursements/cash-investments/vendor-payment-methods.shtml
Invoices can be submitted via the mail or email acctspayable@jmu.edu
JMU Accounts Payable
MSC 5712
1031 South Main Street
Harrisonburg, VA 22801
For additional information on invoice requirement and invoice processing, refer to the Accounts Payable website Vendor Payments - JMU
As a state agency, JMU is required by law to participate in the Commonwealth of Virginia’s Debt Set Off program. This program allows state agencies to claim vendor payments of one state agency to satisfy debt owed by the vendor to another agency. JMU does not provide detailed vendor circumstances; only a list of vendor TIN numbers currently on Debt Set Off. JMU’s payments are then routed through Virginia’s Department of Accounts (DOA). DOA will deduct from the payment any amounts owed to another Virginia State Agency and send a vendor the remaining balance.
A vendor can identify if a payment was subject to Debt Set Off by making note of the check received. A check received from the Commonwealth of Virginia (vs a check from JMU) means that the payment was subject to Debt Set Off. Any questions regarding Debt Set Off should be directed to Accounts Payable.
The office of Accounting Technology prepares two tax documents at the end of the year that vendors could potentially receive. Per IRS regulations, these documents must be postmarked by January 31st of each year.
1099-NEC (Non-Employee Compensation): This tax document is used to report cumulative payments of $600 or more in a given calendar year. Non-employee compensation is subject to self-employment tax in addition to Federal/State income tax. Only reportable expenditures are included if they are made to withholding vendors.
Withholding Vendors include individuals, partnerships, LLC/LLPs, and sole proprietorships. Generally, corporations are excluded.
Reportable expenditures include payments related to services / honorariums. Generally, payments related to tangible goods and travel reimbursements are excluded from reporting.
1099-MISC (Miscellaneous): This tax document is primarily used to report the following in a given calendar year:
- Royalty payments over $10
- Rent payments over $600
- Prizes payments over $600
These miscellaneous payments are not subject to self-employment taxes; only federal/state income tax.
For questions/concerns regarding your 1099, please contact the Accounting Technology Office.
