How to Pay for International Activities— Payroll, Purchasing, Services and Travel (October 2013) Pay Salaries for UW Employees Who Work Abroad Pay Foreign Vendor for Goods & Services for Use Abroad Pay Independent Contractor for Services Performed Abroad INTERNATIONAL TRAVEL – FOR INDIVIDUALS Pay for international flight Pay for international lodging Pay for meals while abroad (reimbursed based on per diem rates) Bank Cards CTA card* NA NA NA YES NA1 NA Personal credit card NA YES NA NA2 YES YES ProCard NA YES YES NA NA3 NA3 UW Travel card NA NA NA YES YES YES Cash (Personal funds or cash converted from per diem or field advance) NA YES (not a preferred option) YES (not a preferred option) NA2 YES (not a preferred option) YES (not a preferred option) Direct Deposit YES NA NA NA NA NA UW Check YES YES 4 YES 4 NA NA5 NA5 Wire Transfer NA6 YES YES NA NA5 NA5 NA = not available as a payment method *Note that the CTA card can also be used to pay for bus, rail and boat tickets. It can also be used for flights and lodging for non-UW individuals traveling for business purposes, if allowed by the grant. 1There are two exceptions when the CTA card can be used to pay for international group lodging—for UW employees when 5+ rooms are booked and for student groups (undergrad and graduate) of any size. Note, however, that international hotels usually require an actual card to be presented for payment. 2 Washington State rules require that airline tickets must be purchased with either a UW travel card or a CTA card. 3 If the cardholder is hosting an event abroad, the ProCard can be used for lodging and meals (per diem applies). 4It may be problematic for a foreign vendor or independent contractor to cash a UW check. 5This method can be used if lodging or food for a group event (e.g., conference) was secured through a purchase order. 6Contact UW Payroll Office. Wire transfers are used in limited circumstances.
Direct Deposit Method Responsibilities Cost Maximum Transaction Limit Transaction Time Advantages Disadvantages Dept/UW UW Office Direct deposit to employee’s US personal bank account Employee signs up for direct deposit through Employee Self-Service website UW Payroll Office answers questions about direct deposit No cost No limit on amount of direct deposit Direct deposit for foreign-based employee follows same process as for Seattle-based employees Fastest way to receive UW paycheck No extra fee for dept to pay foreign-based employee US banking system has customer protections Requires foreign-based employee to have a US bank account Direct deposit to employee’s foreign personal bank account UW works with Travelex, an finance company, to wire pay checks to foreign accounts Dept contacts UW Payroll and prwire@uw for initial Travelex setup Every pay period, dept emails with the net amount of employee’s paycheck to be wired UW Accounts Payable notifies Travelex of the amount to wire Travelex wires amount to employee’s foreign bank account $25 wire fee per pay period which can be either charged to the budget or deducted from the employee’s paycheck No limit on amount of direct deposit Can take up to 10 business days for wires to be processed Only method to electronically pay a UW foreign-based employee who doesn’t have a US bank account Faster payment than a check to pay a UW employee Employee may incur fewer banking charges and fees than if paid by UW check This is a manual process which may result in delays if there’s a slowdown at any step Depending upon the country’s banking regulations, foreign wires may be sent through multiple banks which may prolong how long it takes for the wire to be deposited in the employee’s account Cost of twice monthly wire fee
Dept incurs an expense to a foreign vendor Vendor Accounts Payable wires the payment system Bank statement is a reliable and consolidated record of banking transactions Easy to return any unspent funds from an advance Wire transfer to foreign bank account For a Field Advance Dept initiates request for wire transfer To Pay a Foreign Vendor Dept incurs an expense to a foreign vendor For a Field Advance Field Advance Office wires the advance To Pay a Foreign Vendor Accounts Payable wires the payment $25 per wire No limit to the amount that can be wired Money can usually be accessed in 2-5 business days from when the wire transfer request is approved Transaction time may take longer depending on banking system and country that receives the wire Wire to a foreign account is a secure, transparent method of payment May be only option to pay foreign vendor If wiring funds to a UW employee, foreign bank account must be opened prior to the money being wired Foreign bank account doesn’t have customer protections of US banking system If there’s a mistake with the wire, it can be time consuming and difficult to resolve Country laws may prohibit repatriating unspent funds from the foreign account either electronically or in cash Cost to dept of wire transfer