Are you processing non US payments in compliance with US Tax Withholding requirements? Have you collected the correct tax forms and assessed the appropriate withholding rate? Does your documentation support the decision and are you compliant with 1042 reporting requirements? Kim Rankel, Director, Global Business Solutions, North America Purchase to Pay at Eli Lilly and Company, is well poised to share some best practices when it comes to resolving these issues and creating a robust foreign supplier payment process. We are excited to welcome her to INNOVATE 2015 to lead a session focused on doing just that. She’ll share Eli Lilly’s strategy, which ensures compliance while at the same time automates a large percentage of the foreign invoice processing and tax reporting requirements.

Here is a sneak preview of her presentation:

There are some basic rules when it comes to Non-Resident Alien (NRA) information reporting and withholding. Generally, NRA withholding is required when:

• A person who is a withholding agent;
• Has control, receipt, custody, disposal of income;
• Makes a payment;
• Of an amount subject to NRA withholding – US Sourced income; and
• The payment is to a non-US person (or entity)

A US withholding agent must determine

• What is paid – Type of income & source
• To whom it is paid – Payee Type; and
• When it is paid – determines tax deposit timing

Identify Transaction, Source and Withholding

• Web invoicing system – work closely with web invoicing partner, identify foreign supplier, present US Sourced income questions, interface data to SAP
• SAP/AFI – identify foreign supplier, receive web invoice US Source responses, auto post based on criteria, US tax withholding capability
• Transactions (invoices) are flagged & will not post if vendor record does not include valid tax form even if no US sourced income