The University will replace Forms G and G-2 with more specialized payment forms beginning Feb. 18, and will offer a new Web tool to guide users to the right form for accurate processing of payments.
Called PeoplePay, the site asks simple questions to quickly determine the correct process or form to use when making payments to a person for services.
“There are many instances when faculty and staff members need to pay an individual for services, royalties, moving expenses or other purposes,” says Norel Tullier, director of university payrolls. “The process for paying individuals is much different from paying organizations, and PeoplePay is a single source for quickly determining the correct type of payment for the circumstances. With a few clicks, PeoplePay will tell you whether payment should be made to an individual as an independent contractor or an employee, or will direct you to Procurement Services if your circumstances do not qualify for a payment to an individual.”
The system uses a set of IRS rules to make the payment determination, and then explains the process or provides an editable electronic form to make the transaction.
“Payment requests have to comply with University policies and IRS rules, and the outcomes have tax implications,” says Eric Kruse, manager of business processes for Financial Operations. “Using specialized forms helps us better categorize University expenditures, but the PeoplePay site helps keep it simple by quickly guiding users to the right form for their situation. Feedback from test users in campus units has been extremely positive.”
PeoplePay was developed cooperatively by representatives from several campus units, Financial Operations, Procurement Services, the Payroll Office and University Human Resources. It becomes available on Feb. 18 through the University Business section of Wolverine Access at wolverineaccess.umich.edu.
PeoplePay interchanges will be offered between January and March at various campus locations. To view the schedule and an outline of the topics to be covered, go to www.hr.umich.edu/peoplepay.html.
