Payment to Individuals (P2I) is a form in ARIBA providing users a convenient means of making quick payments to an individual. P2I is open-access, which means that anyone with access to ARIBA will be able to view and initiate a P2I payment.
Used for expenses associated with services provided to the UW, for which the individual is being paid for.
- Attach receipt copies, but return original receipts to the individual for tax reporting
- Any expenses paid will be reported as income on form 1099 MISC
Used to pay awards and prizes for Non-UW Employees. Can be used for UW Students only if there is no stipulation on how funds are to be used by the student. Examples of this are awards or recognition for a special achievement, such as winning a judged competition, where the money can be used for any purpose. See Student Prizes and Awards
An honorarium is an amount of money paid to a professional person for which fees are not legally or traditionally required in recognition of a special service. The individual receiving the honorarium MAY NOT be an employee of the UW.
What qualifies as an honorarium?
- A lecture or talk
- A colloquium
- An address
- Grand Round
- A continuing education presentation or similar activity given to students, staff, faculty and/or the public at large
What does not qualify as an honorarium?
- Payments to companies or other institutions
- Personal Services or consulting services such as analyzing, design, planning, facilitating, interpretation, marketing, performing, programming or organization development, research or scientific studies, strategic planning, video production, organizational assessment, quality assurance, editing or reviewing.
Used to pay scholarships or "stipends" to Non-UW students or Non-UW employees, such as a department awarding a scholarship to a student attending a different school or paying a Non-UW individual for participating in a training or conference.
What is a stipend?
A payment that is made to an individual to support a training or learning experience. For a payment to be considered a stipend, certain criteria must be met.
- Stipends are not considered wages if they are payment for a training or learning experience and not a payment for services rendered
- See Stipend Payments for more information
How do I pay a stipend to a UW employee or student?
Employee stipends can be paid through Payroll
- Generally, employee stipends are not considered taxable wages
Student stipends should be paid through Student Fiscal Services
- Student stipends will be reported at year end on a 1098-T tax form
Used to pay for artistic performances to UW Students and Non-UW Individuals. Not intended for groups, current UW employees or Foreign Nationals.
- Musical performances
- Dance recitals
Research projects involving human subjects often offer a small payment to the research subjects for purposes of recruitment or encouragement for participation in the project. Payment can be made using Revolving Funds, Field Advances or Gift Cards. They cannot be paid through P2I.
A royalty is a payment to the legal owner of a property, patent or copyrighted work for the right to use the intellectual or physical assets owned by the licensor. Royalties do not include services.
What qualifies as a royalty payment?
- Copyright or patent payments
- Rights to use/license fees to photographers for use of their photos
- Permission fees
- Usage fees
Used to pay personal services, excluding Honoraria, such as consulting, design, analyzing, editing/reviewing, and strategic planning.
- Payment of personal services to individuals is subject to the Direct Buy Limit and current purchasing policies.
- Do not submit a P2I more than 2 weeks in advance of the service date.
- Courtesy and Affiliate appointments in HEPPS do not count as UW employees. Service payments can go through P2I.
- Logic has been built in to the P2I Independent Contractor Status Verification questions. If you are unsure whether a person should be considered an employee or independent contractor, contact the tax office at email@example.com
- Attach a copy of the individual's invoice.
- Collect the payee's social security number for each payment. P2I does not save social security numbers.
- Note: Each social security number is checked manually against the IRS database for accuracy by Central Office. Do not include any social security numbers on any attachments in ARIBA.
- If payment includes travel or expenses as a line item, there is no need to create two forms. Lump the expenses into the total with the service fees.
- Note that travel and expenses will be reported on the payee's Form 1099 if paid through P2I
- Exception: Photographer services and royalties should go on separate P2I forms for tax reporting purposes
- Set up a system within your department to ask up front if the individual is a foreign national.
- If an individual already has an active vendor number, use Non-PO Invoice to make the payment.
- If a service invoice is over the Direct Buy Limit, do not split the invoice into two different P2I payments.
- Do not submit a P2I more than 2 weeks in advance of the service date.
- Payments created more than 2 weeks in advance will generate an error message when the user tries to submit the P2I.
- Any payments prior to the service date must be mailed to the campus box.
- Do not upload 1631 or 1632 forms. The questions on these forms have been built into the P2I functionality.
- Do not upload receipts. Return all receipts to the individual to file with their tax return.
Individuals who have an active vendor number
Payment for goods (i.e. artwork or equipment)
Payment to a company or group
Honoraria related travel
Current Employees (Exception: Royalties)
Will require review for appropriate classification. Contact firstname.lastname@example.org.
Clubs or groups assisting at UW athletic games
Revolving Fund, Field Advance, or Gift Card
If the payment over $10,000:
A buyer will be added to the Approval Flow
If you reimbursing travel and expenses related to honorarium:
If the payment to a foreign national:
P2I cannot be used to make payment. Payments to Foreign Nationals can be initiated with a check request Form 1570. Additional documentation may be required. Please see the Global Operations Support page for more information.
The process for paying an honorarium to a foreign national when the event occurred on U.S. soil is complex because three separate government departments and the UW are involved:
- The Department of State issues the visa that allows a foreign national to apply for entry into the U.S.
- The Department of Homeland Security issues the form that permits a foreign national to enter the country.
- The Internal Revenue Service issues forms necessary for collecting taxes and applying for a tax identification number.
- The University of Washington collects forms.
The flowchart, Pay Foreign National for Honorarium and Travel Reimbursement, helps navigate this process. Use the checklist, Inviting & Paying on Honorarium to a Foreign National for Academic Activities at the UW, to ensure all steps have been covered.
1099 Misc Tax Reporting Process:
As of January 2013, the University of Washington will be reporting all payments made to 1099 reportable suppliers (including travel expenses) on Form 1099 MISC. More information about this change can be found on the Tax Office website.
For training on Payments to Individuals see our eLearning tutorial on the Training page.