Financial Services

Financial Services

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Making Payments

Employee Reimbursements & Subject Payments

Reimbursement to Individuals - ERS

To create an Employee Reimbursement Expense Report in the ERS (reimbursement for items purchased on behalf of the department or faculty), follow the same instructions as for a Travel Expense Report in the ERS - Expense Reports, How to Create

Reimbursements to Individuals - Paper Process

Reimbursements to individuals for out of pocket non-travel expenses may be paid providing original receipts accompany a fully completed cheque requisition.

The following are not acceptable as receipts:

  • invoices which do not indicate payment has been made
  • cancelled cheques
  • credit card statements
  • credit card slips (except gas reimbursement for rental car)

All employee reimbursements must be approved by the individuals immediate supervisor (referred to as "one over one" approval ie: Deans must approve Department Head reimbursements).

Subject Payments - ERS

To be reimbursed for payments to research-related subjects (individuals that are paid to participate in research) create an Expense Report in the ERS and follow the same instructions for a Travel Expense Report that includes a cash advance in the ERS - Expense Reports, How to Create

Subject Payments - Paper Process

Subject payments to individuals who may have been subjects for experiments or research interviews, etc. do not require receipts.

The requisition must indicate "subject payment" as a description.

How to Pay Consulting Fees

Payment of consulting Fees to an individual is considered taxable income.

When the University is issuing this type of payment, it is the responsibility of Financial Services to ensure that legislation set out by Revenue Canada is followed.

Note: If an individual receiving a consulting fee is also being reimbursed for travel expenses, please submit the travel expense on a separate travel claim. Further to the Broader Public Sector Expenses Directive, not all expenses incurred by consultants are eligible for reimbursement. For further information, please refer to the Strategic Procurement Services website.

If the payee is a non resident of Canada, the University is required to withhold 15 % tax. In this case, please indicate whether the mount noted on the requisition under "amount of cheque" is "GROSS' or "NET" of tax.

To initiate payment, use a SALARY REQUISITION in all cases except the following:

  • where payee is non resident or
  • where payee has an official "tax ruling from Revenue Canada stating he/she is tax exempt (in which case a copy of the ruling must accompany request for payment)

In the above noted cases use CHEQUE REQUISITION and provide the following information

  • indicate residency status (i.e. resident (Canadian/landed Immigrant) or non resident (outside Canada)
  • employee number of payee (if he/she has one)
  • complete name of the payee (initials are not acceptable)
  • complete permanent home address of the payee
  • complete all other areas of the requisition including:
  • account to be charged (Queen's 8 or 10 digit account number)
  • authorized signature (person authorized to sign on account) note: payment to an individual cannot be authorized solely by that individual, but must be countersigned by a person at a higher level in the organization than the person being paid; Financial services will accept the signature of the department's administrative assistant on the accounts for which he/she has been delegated signing authority except where the payment is to the administrative assistant (or people) to whom he/she reports (in most cases, a researcher or department head)
  • direct deposit service is only available for individuals that are paid on monthly payroll.
How to Pay an Honorarium

An honorarium payment to an individual is considered salary and is therefore taxable income.

When the University is issuing this type of payment, it is the responsibility of Financial Services to ensure that legislation set out by Revenue Canada is followed.

Note: if an individual receiving an honorarium is also being reimbursed for travel expenses, please submit the travel expenses on a separate travel claim .

Note: If the payee is a non resident of Canada, the University is required to withhold 15% tax. In this case, please indicate whether the amount noted on the requisition under "Amount of Cheque" is "GROSS" or "NET" of tax.

When a gift is being substituted for an honorarium, the department must inform Financial Services of this arrangement; (a letter to Financial Services stating who is receiving the gift from the University). Since a gift in lieu of money is classified as a taxable benefit by Revenue Canada, the University has a legal obligation to comply with income tax legislation.

Use the CHEQUE REQUISITION form for these exceptions and provide the following information.

  • residency status (i.e. resident (Canadian/Landed immigrant) or non resident (living outside Canada))
  • employee number of payee (if he/she has one)
  • complete name of the payee (initials are not acceptable)
  • complete permanent home address of the payee
  • complete all other areas of the requisition including:
  • account to be charged
  • authorized signature (person authorized to sign on the account) note: payment to an individual cannot be authorized solely by that individual, but must be countersigned by a person at a higher level in the organization than the person being paid; Financial Services will accept the signature of the department's administrative assistant on the accounts for which he/she has been delegated signing authority except where the payment is to the administrative assistant (or people) to whom he/she reports (in most cases, a researcher or department head)
How to Pay Independent Contractors

 Canada Customs and Revenue Agency: Employee or self-employed?

In recent years at Queen's, there has been a shift away from the traditional employer-employee relationship in favor of contracting for certain non-core services from independent contractors (i.e. services that are not directly related to teaching or research).

When departments or PI's enter into agreements with individuals who are acting independently, it is very important that the nature of this relationship be documented.

An important reason to document the relationship is to ensure that the University complies with the Income Tax Act. This act stipulates that if an employer-employee relationship exists, then source deductions (such as CPP, EI, and income tax) and employer paid amounts (such as EHT and WCB) be calculated, deducted, reported, and paid. Penalties of at least 25% of the payment could be incurred if Queen's does not make the appropriate deductions.

The documentation should include at a minimum:

  • description of services rendered
  • how payment will be calculated
  • where work will be done
  • when work will be done
  • who will direct the work

Payments to staff members (irrespective of the department where those duties are performed) to compensate for the performance of duties should never be treated as eligible for Independent Contractor treatment (i.e. payments to a secretary who normally works for department X that performs typing services for department Y should always be processed using the payroll system by department Y).

When the work has been completed, the independent contractor should issue an invoice. The invoice should include the following information:

  • Invoice Date
  • Invoice Number
  • Name and address of Independent Contractor
  • Description of work
  • Invoice Amount

In cases where it is clear that no employee-employer relationship exists, use the Cheque Requisition form to initiate the payment. Attach the invoice supplied by the contractor.

For employment that will require an employee to receive a T4, they should contact Human Resources directly.

How to Pay Moving Expenses

The University will contribute towards a new staff member's expenses in moving to Kingston in accordance with the moving allowance policy approved for each individual Faculty or Department.

All questions regarding the eligibility, request for advance funds, and processing procedures should be directed to the appropriate Faculty or Department Office.

Travel Advances / Cash Advances for Travel

A Travel Advance is a loan given to a traveller to cover out-of-pocket costs of approved business travel. A Travel Advance is not the same as a Travel Award. All travel advance amounts issued are considered by Queen’s to be amounts receivable from the recipient until the travel advance has been accounted for.

Upon return from the trip, the traveller must account for the advance by completing and submitting an Expense Report (ERS) or a Travel Expense claim form (paper process) within 15 days of the travel return date).

If the traveller’s verified travel costs are in excess of the advanced amount, the additional costs will be paid to the claimant (subject to the appropriate approvals).

Any unused portion of the advance must returned to Financial Services in the form of a personal cheque made payable to Queen’s University.

Please note that the following document relates to Travel Advances only. For questions regarding other types of advances, such as Subject Payments, please refer to the guidance provided for these specific topics on the Financial Services website.

  • Advances are issued in Canadian funds only and should not be requested for an amount less than $1,000.00.
  • Requests for travel advances must be submitted far enough in advance of the trip to allow sufficient time for Financial Services to process the payment. Travel Advance Requests with correct information and approval are processed within 5 business days from receipt. Please note that those paid by EFT (Electronic Funds Transfer) may require 2-3 business days for the bank to process the transaction into the payee’s account.
  • A person cannot approve a travel advance for him/herself. All requisitions must be authorized by one-over-one approval.
  • A Travel Advance will not be issued if the individual currently has an advance outstanding that is overdue. This would include any situations where the current date is more than 15 business days after the specified End Date for a trip covered by previous advance, which has not yet been accounted for.

Notes:
- An advance issued through the paper process must be accounted for with a paper travel claim and those issued through the ERS must be accounted for through the ERS.
- If an advance is not required for the purpose or the period for which it is issued, the advance should be returned immediately to Financial Services by cheque, payable to Queen’s University. Please make sure to indicate on the cheque that it is a return of an unused travel advance.

For any questions regarding this process, please contact Financial Services at 613-533-2050 or send an email to travel.advances@queensu.ca


Cash Advance for Travel - Expense Reimbursement System (ERS)

Starting May 4, 2015, all faculty and staff requesting travel advances must do so through the ERS.

  1. In the ERS go to Request > New Request
  2. Fill in the required fields (red line beside field) for the Request Header and the Cash Advance Amount field, click Save
  3. Enter estimated expenses information in the Segments tab. For other expenses types not listed under the Segments tab, click on the Expenses tab and enter the estimated expenses using the expense types listed
  4. Click the Submit Request button
  5. If a default approver has not been set up, select the Approver for the request and then click Submit Request again

Travel Advance - Paper Process

To request a travel advance, the traveller will need to submit an approved Travel Expense/Advance form which will be processed and paid out by Financial Services. At the top of the Travel Expense/Advance form the radio button for Travel Advance must be selected.

Required fields on this form include:

  • Payee Name
  • Employee ID Number
  • Start Date and End Date of trip
  • Travel Location(s)
  • Nature of Travel (why the payee is travelling)
  • Amount Requested
  • Account Information

Notes:
- The Travel Advance Request cannot be processed if the required information is not provided on the form submitted.
- Financial Services will follow up any overdue travel advance amounts on a monthly basis with the approver of the advance and/or the Business Officer in the department/faculty as required.

How to Pay Travel Agents

 

Preferable methods for paying travel related expenses include:

  • The claimant uses personal funds to pay for their expenses and submits a claim for reimbursement within 30 days of return from travel or the date the expense was incurred; or
  • The claimant requests a travel advance to pay for their expenses and submits a claim within 30 days of return from travel or the date the expense was incurred.

If either of these arrangements is not possible, payments can be made to travel agents directly, providing that specific requirements have been met.  Departments are responsible for establishing an account with a travel agent(s), and collecting and retaining the supporting travel documents (e.g. boarding passes) for audit purposes.

Non-Research Funds

If paying travel agents directly using non-research funds, departments are required to retain the original supporting travel documents on file (e.g. boarding passes), once travel is completed.  Documentation may be requested for audit purposes for up to seven years following the date the original expense was incurred.

Payments to travel agents must be supported by original invoices and approved by an authorized approver or delegate, prior to submission to Financial Services for processing.  The following details must be indicated on each cheque requisition submitted for payment to a travel agent using non-research funds:

"Original supporting travel documents (e.g. boarding passes) are available in {Department Name}”.  To request these documents, contact {Contact Name} at {Contact number}.

Research Funds

Prior to paying travel agents directly using research funds, departments must first have an agreement in place with Financial Services.  As part of this agreement, the department confirms that original supporting travel documents (e.g. boarding passes) will be retained on file by the department.  These documents must be made available for audit purposes, for up to seven years following the related research project spending deadline.

The following agreement must be submitted in writing to Financial Services, prior to the submission of invoices to pay travel agents directly using research funds. 

{Current Date}

In order to pay travel agents directly using research funding, original supporting travel documents (e.g. boarding passes) will be retained on file in our department, and made available for audit purposes for up to seven years following the related research project spending deadline.  Payments to travel agents will be prepared and approved by an authorized approver or delegate, prior to submission to Financial Services for payment.

To request original supporting travel documents retained by our department, please contact:

Contact Name:          ______________________________   Extension: ________________

Department Name:   _________________________________________________________

I agree to these requirements and approve this agreement on behalf of this department:

________________________________        ________________________________________

Department Head Name                              Approval Signature

Payments to travel agents must be supported by original invoices and approved by an authorized approver or delegate, prior to submission to Financial Services for processing.

Completed and approved agreements should be forwarded to:

Research Accounting, Financial Services

207 Stuart St., Rideau Building (3rd Floor)

Attn: Research Accounting Administrator

 

 

 

Wire Transfer Payments

A wire transfer is an electronic transfer of money. In the case of a bank-to-bank transfer, no actual cash is exchanged, but electronic balances in the respective accounts are adjusted accordingly. This is a very secure way to transfer funds, as positive identification of both account holders is required. To process a wire transfer payment Finances Services requires the name of the owner of the bank account as well as the account number, swift code, bank name and address and the amount of the transfer and currency on the complete, approved CHEQUE REQUISITION. If this is for an international transfer (EURO or GBP), please provide the IBAN number.

Financial Services processes wire transfer payments every Wednesday. Requests for non-research wire transfer payments must be received by 4:00 PM Monday to be processed on Wednesdays. Requests for research wire transfer payments must be received by 4:00 PM the preceding Thursday to be processed by Wednesday, in order to allow sufficient review time. Requests received after these cut-off periods will be processed on the following Wednesday. Rush payment requests are subject to an additional fee further to our Exceptional Rush Payment policy.

Payments to Research Study Participants

Payments to research study participants can be made in different ways. The procedure below describes the methods and requirements associated with making payments to research study participants.

 Procedure for Payments to Research Study Participants (pdf, 157kB)