- UNM Policies & Procedures

While traveling outside of the United States for research, study-abroad, or any other purpose, UNM faculty and/or staff may often have cause to make payments via cash or p-card to individuals and/or companies for services that have been provided. In these cases, the service provider is not set up as a vendor as such in Banner; however, information must be obtained to document the status of the person/company, for tax purposes.
For the specific and sole purpose of documenting that a person/company receiving a payment as described above is not a U.S. Person, the UNM individual making the payment MUST have the payee complete and sign the form at this link: “Certificate of Foreign Status for Transactions Occurring Outside the United States”.
IMPORTANT: PLEASE NOTE: The Certification form as described immediately above SHALL NOT be submitted to the UNM Vendor Setup Group. The form MUST, however, be submitted with the Travel DPEZ to report the expenses of the trip, and will be evaluated by the UNM Taxation Issues area.
If the form is not provided, the assumption is that the payee IS a U.S. Person, and the payment is subject to 28% tax withholding. As the payment would have already occurred, obviously withholding cannot be done, therefore, the department funding the payment will be charged for the appropriate tax at a grossed up rate of 38.89%.