Disbursement of Funds
Before disbursing funds, the Accounts Payable department ensures that expenses adhere to the guidelines set forth in Accounts Payable policies regardless of the source of funding.
Although Research Foundation Sponsored Programs managers assist with various tasks during the managing phase of the research project, principal investigators are ultimately responsible for ensuring compliance with all administrative and financial policies related to their grants. Principal investigators have the authority to approve purchases, personnel related actions, and various other expenditures and reimbursements.
San José State University has officially designated DocuSign as the only approved method for electronic signatures. In keeping with the university directive, the Research Foundation can only accept DocuSign electronic signatures.
All SJSU Research Foundation payments are made electronically using the Automated Clearing House (ACH) network, which enables funds to be deposited directly into the specified vendor’s bank account. Disbursements (payments) are processed based on the due date indicated on the invoice; vendors are notified of the remittance via email.
ACH forms are available on the Forms web page.
Invoices and requests from vendors located both inside and outside the U.S. are paid by wire transfer. Please note that a fee is charged for each wire transfer. The following information are required for wire transfers:
- Beneficiary Bank ID
- Beneficiary Name
- Beneficiary Address IBAN (if applicable)
- Account Number
- Type of Currency
Payments & Reimbursments
The SJSU Research Foundation disburses payments such as:
Participant Support Stipends
Participant costs are for non-service participation only. Participants who are attending a workshop training may receive a stipend. A stipend is a payment made to an individual for their attendance or participation only, NOT for services rendered. The payments cannot be tied to “any obligation for past, present or future services.”
There can be no employer/employee relationship associated with the stipend payment. No fringe benefits are associated with stipend payments as they are NOT for services rendered. Those delivering the training are doing “for service” work and would be paid a salary.
Student Stipend Payments
Payments to SJSU students are disbursed by the Financial Aid and Scholarship Office, and paid through the Bursar’s Office to student accounts.
Payments to students who are not enrolled at SJSU are sent directly to the student. To facilitate a student stipend payment, the PI must:
- Complete a Purchase Requisition.
- Complete the appropriate Non-Service Stipend Award and Acceptance Letter (for either SJSU student or for non-SJSU student).
- Have the student complete the ACH enrollment form.
- Submit all forms to the designated Sponsored Programs manager for processing.
Independent Contractors Payments
Payments to independent contractors require that the PI complete and submit the following forms to their designated Sponsored Programs manager for review and Research Foundation approval:
- Determination of Independent Contractor Status Checklist
- Independent Contractor agreement
- W-9 Form for U.S. citizens or the W-8BEN Form for non-U.S. citizens (first time submission only)
- ACH Form (first time submission only)
Per IRS guidelines, all independent contractors whose reimbursements exceed $600, will receive a Misc. 1099 form for the current tax year.
All invoices should be submitted along with a requisition form.
California State Tax Withholding
Wages paid to contractors who perform work in California but reside out of state are subject to withholding for California state income tax. In accordance with Franchise Tax Board guidelines, the Research Foundation is required to withhold seven percent (7%) of gross payments made to domestic nonresidents. The current withholding rate for foreign entities is 9.3% of gross payments for non-corporate partners and 8.84% percent for corporate partners.
Individuals may be reimbursed for business related travel, including the cost of transportation, meals, lodging, and certain miscellaneous expenses. Expenses must be listed by date and location, must be itemized, and must be accompanied by appropriate receipts as required, based on the selected method of reimbursement.