The Commonwealth of Massachusetts
Office of the Comptroller
One Ashburton Place, Room 901
Boston, Massachusetts 02108
PHONE (617) 727-5000
FAX (617) 727-2163 MARTIN J. BENISON
MMARS Policy: Payments
Issue Date: July 1, 2004
Date Last Revised: May 19, 2011 (See Revisions for updates.)
Vendor/Customer File and W-9s
The Office of the Comptroller (CTR) is the tax clearinghouse of the Commonwealth and is responsible for accurate state and federal tax reporting for all reportable expenditures made by the Commonwealth. All payments processed through the state accounting system (MMARS) are matched to vendor records in the Vendor/Customer (VCUST) Table in MMARS. To be registered in the Vendor/Customer file, a vendor must submit certification of a Federal Tax Identification Number (TIN). All vendors paid from federal funds must have their DUNS number recorded on VCUST in MMARS.
The MMARS Vendor/Customer File also contains information on customers. These customers enter into a business or service relationship with the Commonwealth of Massachusetts to purchase goods or services from the Commonwealth in accordance with provisions of law or statute. To process a receivable and bill a customer using MMARS, the following information is required: a customer billing address, a customer account number, a billing profile, and processing by CTR.
The Office of the Comptroller relies upon Departments to submit accurate information when registering a vendor or customer for the first time and when making any updates to the VCUST information.
Departments must implement sufficient internal controls to verify that all vendor information submitted to CTR is accurate and complete. The Commonwealth is subject to error notices and potential penalties if the information submitted to the IRS is inaccurate.
In addition, MMARS is the official record of the Commonwealth for receivable and customer information. Departments must take special care to ensure that the information that is entered into MMARS for any receivable is accurate and complete, including routinely obtaining a Taxpayer Identification Number (TIN) for each customer that is entered on the Vendor/Customer File or has any receivable activity (including current customers).
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The Comptroller has broad authority to prescribe accounting rules and instructions for all state Departments and the appropriate use of the state accounting system. Pursuant to M.G.L. c. 7A, ? 7,
M.G.L. c. 7A, ? 8, M.G.L. c. 7A, ? 9 and M.G.L. c. 29, ? 31, the Comptroller is required to implement a
state accounting system (including a centralized payroll system) and issue instructions for the accounting practices to be used by all Departments for supplies, materials, assets, liabilities, equity, debt, encumbrances, expenditures, revenues, expenses and obligations of all Commonwealth funds and accounts, including payroll, unless specifically exempted by general or special law. The Comptroller has full authority to prescribe, regulate and make changes in the method of keeping and rendering accounts and is authorized to direct state Departments to implement changes in their systems to meet these statewide standards.
Filing of IRS FORM MA-W-9 or W-8 for Vendor Registration
To receive payments from the Commonwealth, a vendor/payee must be registered on the Vendor/Customer (VCUST) Table of the state accounting system (MMARS). Departments are required to obtain a completed Form MA-W-9 “Request for Taxpayer Identification Number and Certification” or a W-8
(foreign vendors) to register a vendor and whenever there is a change to the vendor’s legal name, legal address or federal Tax Identification Number (TIN). A TIN is either be:
; a Social Security Number (SSN) issued by the Social Security Administration (SSA) for
; an Employer Identification Number (EIN) issued by the IRS for non-individuals, such as trusts,
estates, partnerships and corporations.
A Department begins the registration or update process in MMARS by entering a Vendor/Customer Entry (VCC) or a Vendor Customer Modification (VCM). Note: For Vendors under statewide contracts, the Operational Services Division (OSD) is responsible for registration and information changes.
New Vendors – New Vendor Code (VCC)
1. Verify that a new Vendor Code is needed. Departments should ensure that the payee is
actually a new vendor that does not already have an existing Vendor Code on MMARS in VCUST
before submitting a VCC. Contract and Program staff should work closely with both the vendor and
their Department’s Accounts Payable/Payments staff to verify this information in MMARS prior to
submission of a VCC. Not all vendors know that they are already registered on the VCUST table. A
search of the taxpayer identification number (TIN) should identify if the payee has a current vendor
2. Verify Supporting Documentation and Authentication. CTR relies upon Departments to
submit accurate information when completing a vendor/customer registration (VCC) or modification
(VCM). Departments must verify that the VCC registration is being made by an authorized
signatory of the vendor. See Verification of Vendor Information and Vendor Authorization for
a. Official Tax Forms. Departments should ensure that the payee has submitted an official
Form W-9 or W-8 identifying the Legal name, Legal Address and Tax Identification Number
TIN (SSN or EIN) that matches what they have already filed with the IRS and DOR. The
legal name is entered in the 1099I Table (for tax reporting purposes) and is the name listed
in VCUST that is used to populate encumbrances and payments and is printed on checks or
remittance advice. All tax documents must include the payee TIN.
; Form W-9. No tax reportable payment should be made without a W-9 form
confirming that the TIN is on file (Form MA-W-9 “Request for Taxpayer
Identification Number and Certification). IRS regulations require backup
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withholding of 28%, at the time a payment is issued, for any tax reportable
payment made for which the payer used an incorrect TIN.
; Form W-9. Foreign persons or corporations require the appropriate Form W-
8. See Pub 515, Withholding of Tax on Nonresident Aliens and Foreign
Corporations and the Instructions for W-8 to determine the correct form to be
b. “Doing Business As” or Joint Payee Name. Many entities have a legal name and also a
“doing business as” (DBA) with a different operational name. If the entity also needs a DBA
name printed on the check, or a Joint Payee Name, this should be entered in the
“Division/Department” field in the “Payment” and “Procurement” address. Please note that
some joint payments require dual tax reporting (such as payments made jointly to an
attorney) and Departments are responsible for notifying CTR if manual tax reporting is
required for any payments made under this type of payment address.
c. Electronic Fund Transfers(EFT). EFT set up should be processed at the time a VCC is
submitted. Electronic Funds Transfer (EFT) is the expected form of issuing Commonwealth
payments to our vendors. See Electronic Funds Transfer (EFT) section below. MMARS
allows a vendor code to have more than one EFT account. EFTs can be processed through a
VCC (Vendor Customer Creation) or a VCM (Vendor Customer Modification). Instructions
can be found in the job aids Vendor and Customer on the CTR Intranet.
d. DUNS numbers. All vendors (defined as sole proprietor, corporation, profit and non-profit,
partnership municipal or regional government, that receive federal grant funds have their
Dunn and Bradstreet Universal Numbering System (DUNS) recorded. See DUNS
Requirement for Vendors Receiving Federal Funds below for requirements.
e. Contract Forms. A Commonwealth Terms and Conditions (T&C) or Commonwealth Terms
and Conditions for Human and Social Services (T&C HSS) may be required for certain state
contracts. Although not required to register a vendor, performance may not begin until the
T&C or T&C HSS has been executed along with the Standard Contract Form. The T&C or
T&C HSS is executed and filed only ONCE by a vendor and will remain on file
permanently with CTR unless or until the vendor is designated as archived. Payments
cannot be issued to a vendor for certain contract performance until the T&C or T&C HSS has
been filed with CTR and recorded in the VCUST Table. Evidence that the T&C or T&C HSS is
on file with CTR appears in the “Business Type” panel of the VCUST file as “TC” and “TCHS”.
Therefore, for new Contractors, the VCC set up should include the appropriate TC or TCHS
setup. NOTE: The legal name, legal address and TIN on any T&C or T&C HSS must
match either a newly submitted MA-W-9 or the information on record in the 1099
Reporting Information Table in MMARS. See Filing of Contract Forms below.
Timely Submission of VCCs to Support Timely Payments, Prompt Payment Discounts (PPD) and Intercepts.
Since VCCs require secondary PEND review by CTR (approximately 5 business days if error-free and supporting documentation matches and is complete), Departments should enter VCCs in MMARS and submit supporting documentation for PEND review AS SOON AS the Department has verified that a new Vendor Code is needed, and not wait until the first invoice or payment is due. Since EFT is the primary medium for Contract payments, the EFT paperwork should be submitted with the VCC in order to enable the EFT set up process and validation through the Treasurer’s Office prior to the first payment.
VCCs should be submitted at the time a Contractor is selected after a procurement, or as part of the Contract execution process, so that the VCC PEND set up process is completed in time for the Contract Document to reference the new Vendor Code and Payment Address. The timely processing of VCCs to set up new Vendor Codes ensures that Contract encumbrances can be timely processed, including CTR PEND review for encumbrances exceeding the delegation threshold, and to ensure that payments can be entered to take advantage of Prompt Payment Discounts (PPD). For Contracts with negotiated PPD for accelerated
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payments, Departments will lose valuable discounts (that are savings that can be re-spent by the Department) if the VCC is entered late and the first payment can not be processed within the PPD time period to take advantage of the discount.
Intercept Pre-Match for NEW VCCs. All payments are subject to intercept for debts owed to other
Commonwealth Departments. The Department of Revenue (DOR) child support or tax intercepts are pre- matched on Fridays against the CIW (Commonwealth Information Warehouse) to identify Vendor Codes that have outstanding debts. VCCs that are processed to “Final” and in the CIW by Friday will make this
match and any payments entered as of the following Monday are intercepted, supporting the collection of Commonwealth debts.
By submitting VCCs in a timely fashion, the new Vendor Code is in place long before the first payment is due and can be picked up on the DOR pre-match in time to include on any upcoming debt matching file for MMARS payments.
Vendor Code Modifications - VCMs
Departments should always look up the vendor in MMARS to verify the current information and to obtain the necessary supporting documentation for any requested change. Contract and Program staff should work closely with vendors and the Department’s Accounts Payable/Payments staff to verify this
information in MMARS prior to submission of a VCM. A legal address, remittance address, tax id, legal
name or structure changes should not be made unless an authorized signatory of the payee has submitted an updated W-9 or other acceptable supporting documentation AND the Department has independently verified with an Authorized Signatory of the payee that the requested changes are legitimate in comparison to the information already on MMARS
Verification of Vendor Information and Vendor Authorization
Departments must ensure the legal and remittance address, classification and TIN type (SSN/EIN) are recorded correctly on the 1099I and VCUST tables in MMARS. As the Commonwealth Tax Clearinhouse, CTR is required to issue tax reporting forms (1099s) based upon the types and amounts of payments made to vendors. Each year, a significant number of 1099s are returned as undeliverable due to incorrect address information in the VCUST and/or 1099I table on MMARS. Even if vendors are paid via electronic funds transfer (EFT), Departments are responsible for ensuring that all VCUST information is accurate by periodically verifying this information with any vendor (e.g., as part of annual renewals of contracts).
CTR relies upon Departments to submit accurate information when completing a vendor/customer registration (VCC) or modification (VCM). In addition to verifying the information submitted in the MA-W-9 or T&C or T&C HSS, Departments must verify that the registration or modification request is being made by an authorized signatory of the vendor. Even though the MA-W-9 (or W-8) is signed under the pains and penalties of perjury, verification is necessary to ensure that the individual submitting the request is authorized to legally bind the vendor and to prevent funds from being misdirected to a third party instead of the vendor.
When a Department submits a VCC or VCM transaction to pending status, the authorized Department signatory is certifying that the document is accurate and complete and that it has verified the information in the VCC or VCM. Departments are in the best position to verify the accuracy of vendor/payee information because they work directly with the vendor/payee and can take necessary steps to verify information. By accepting Forms W-9 and W-8 and updates only from authorized signatories and verifying the signatures match the CASL Form (Contractor Authorized Signatory Listing) or
other approved verification, Departments assist with reducing the risk of directing payments to the wrong payee or address, delaying payments, creating inaccurate tax reporting, or inadvertently allowing fraudulent payments.
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1. Verify need for VCC or VCM. Since new VCCs and VCM changes impact ALL Departments using a Vendor Code, Departments must exercise due diligence to ensure that the payee understands that a new vendor code or vendor code changes will impact all payments under the Vendor Code for all contracts with Commonwealth Departments to ensure that the new vendor code or any changes are truly appropriate. (Note: a new Vendor Code may not be created for an “assignment” of payments. See Remittance Addresses and Assignment of Payments below.
2. Limit Additional Remittance Addresses. Many payees have multiple divisions and may
independently send a W-9 under a new procurement, a new contract or amendment which may or may not match what is already in MMARs. Some vendors seek multiple remittance addresses, without EFT accounts, to send payments to various divisions, rather than through the central accounts receivable location or to EFT accounts. Having numerous payment remittance addresses should be avoided unless absolutely necessary since the risk of fraud and inadvertent misdirection of payments may occur. Therefore, as part of any VCM due diligence, the Department should work with a payee to verify all current remittance addresses in MMARS to identify if any are defunct or no longer valid to prevent misdirection of payments to incorrect addressed. This may take some additional time, but it is an important verification process that Departments are responsible for supporting. Any additional remittance addresses should be set up to support EFT
3. Verify information in MMARS. Contract and Program staff should work closely with vendors and the Department’s Accounts Payable/Payments staff to verify the information in MMARS prior to submission of a VCC or VCM.
4. Verify information with Vendor and Validate Authority for Change. Departments should not
merely accept and process whatever paperwork is submitted to them, but must ensure that they speak with an Authorized Signatory with the authority to make these changes in the legal address, TIN, legal address, EFT or remittance addresses to ensure the change is appropriate and properly authorized. Just because a person works for the payee does not mean they have the “authority” to approve a W-9 or a change in remittance address.
a. Verify Supporting documentation. Departments must be careful to match the relevant
supporting documentation, such as the W-9 Tax Forms, the Contract Forms, and EFT
forms to ensure that the information match. NOTE: The legal name, legal address and
TIN on any T&C or T&C HSS must match either a newly submitted MA-W-9 or the
information on record in the 1099 Reporting Information Table in MMARS.
b. Authority Validation. To protect the Commonwealth from an inadvertent or fraudulent
attempt to misdirect payments Departments are required to authenticate that individuals
requesting a new vendor code or change are authorized signatories.
i. Contracts. When contracting with a vendor, Departments are required to obtain a
CASL Contractor Authorized Signatory Listing Form naming all of the individuals who
are authorized to sign off on obligations on behalf of the Contractor. A Department
can use this listing to verify that the MA-W-9 (W-8) for vendor registration, a W-9
modification request, or the signature on the T&C or T&C HSS is legitimate and
approved by an authorized signatory of the vendor.
ii. Non-Contract Payments. If the Department is not contracting with the payee but
is using an Incidental Purchase or making another type of payment, the
Department must take appropriate steps to verify that the registration
request (VCC) or update (VCM) is legitimate and submitted by someone
authorized to make such a request. A cover letter on letterhead or a name
is not sufficient; the Department must personally verify that the submitter is
an authorized signatory. W-9s should be validated against the signature on the
CASL form or other authorizing documentation.
c. Verification of Information. Verification of VCC and VCM information should not be done
solely through email, but should be followed up with a phone call and verified with an
authorized signatory, or whatever other actions are necessary to document that the
Department has investigated that the new VCC or VCM change or additional remittance
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address is appropriate and properly authorized. Departments should also walk through the
VCUST and 1099I screens in MMARS with the payee to ensure that any changes are
d. Verification of Payments under New Remittance Addresses. As an additional
protection against fraud and misdirected payments, once a VCM payment change has been
processed, the Department should verify with the payee that the payments are being
received correctly and properly posted to the Department’s account or payment obligations.
DUNS Requirement for Vendors Receiving Federal Funds
The United States Office of Management and Budget (OMB) requires all vendors (defined as sole proprietor, corporation, profit and non-profit, partnership municipal or regional government) that receive federal grant funds have their Dunn and Bradstreet Universal Numbering System (DUNS) number recorded with and subsequently reported by the granting agency. To meet this requirement, the MA-W-9 form includes the field DUNS number. All vendors must submit their DUNS number using the form MA-W-9. Any entity that does not have a DUNS number can apply for one on-line at www.DNB.com under the
“D&B D-U-N-Number” Tab or at:
cannot obtain and do not need a DUNS number,. i.e., foster parents who are paid using their social security number. Departments should enter or update the DUNS number using a Vendor/Customer Entry (VCC) or a Vendor Customer Modification (VCM).
Use of the Commonwealth DUNS numbers by non-Commonwealth entities is Prohibited –
Issuance of the Commonwealth’s DUNS numbers to non-Commonwealth entities such as sub-recipients
is prohibited. If this is done, the Commonwealth may be put into a position of being reported as being
The Use of DUNS Numbers in Federal Grants primarily responsible for a secondary entity’s activities. See
Policy. If a Contractor has multiple DUNS numbers, the Contractor should provide the primary number listed with the Federal government’s Central Contractor Registration (CCR) at: http://www.ccr.gov.
Filing of a Commonwealth Terms and Conditions or Commonwealth Terms and Conditions for Human and Social Services
The Commonwealth Terms and Conditions (T&C) and the Commonwealth Terms and Conditions for Human
and Social Services (T&C HSS) are contract boilerplates required for certain state contracts. A T&C or T&C HSS is not required to register a vendor but performance may not begin until the T&C or T&C HSS has been executed along with the Standard Contract Form. Payments cannot be issued to a vendor for certain contract performance until the T&C or T&C HSS has been filed with CTR and recorded in the VCUST Table. Evidence that the T&C or T&C HSS is on file with CTR appears in the “Business Type” panel of the VCUST
file as “TC” and “TCHS”. Departments can easily view whether or not a vendor is registered with a TC or TCHS. Log into the Vendor/Customer table (VCUST) and search the vendor code in question. Click on the “business type” tab and if a T&C has been signed, the screen displays that in the business type field.
The legal name, legal address and TIN on any T&C or T&C HSS must match either a newly submitted MA-W-9 or the information on record in the 1099 Reporting Information Table in MMARS. A new T&C or T&C HSS is not required unless the information on the MA-W-9 changes (legal name, legal address or TIN). The T&C or T&C HSS is executed and filed only ONCE by a vendor and remains on file permanently
with CTR unless or until the vendor is designated as archived. The T&C and T&C HHS is automatically incorporated by reference into any Standard Contract Form executed by the vendor with any Department of the Commonwealth. Departments must verify whether or not a T&C or T&C HSS is recorded as on file in the VCUST table and should not request or require an additional T&C or T&C HSS when one is already recorded. If a vendor inadvertently submits a new T&C or T&C HSS, the Department should forward these documents to CTR for filing.
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Electronic Fund Transfer (EFT)
Electronic Funds Transfer (EFT) is the expected form of issuing Commonwealth payments to our vendors. The Commonwealth's policy is to pay its bills through Electronic Funds Transfer (EFT) while maximizing the use of prompt payment discounts (PPD). (See Prompt Payment Discount Policy and the Bill Payment
Policy.) EFT is a benefit to both vendors and the Commonwealth because it ensures fast, safe and reliable payment directly to the vendor’s account and saves both parties the cost of processing checks.
For statewide contracts, vendors are required to receive payment via EFT. EFT is required for all contracts with multiple payments unless a Contractor can provide compelling proof that it would be unduly burdensome. Vendors may request EFT when registering to receive a one-time payment, including incidental purchases. (See Electronic Funds Transfer (EFT) form).
It is important to process EFT requests in a timely manner. Payments issued prior to EFT activation will be checks which are costly to process for both a Contractor and the Commonwealth. Payments are issued each business day. EFT’s processed by the Commonwealth are credited to the vendor’s bank account the business day following Treasury’s receipt of the disbursement file.
Additional Remittance Addresses
Departments may process an additional remittance address for a VCUST record, when a signed request is received from the requesting vendor on business stationary or the vendor submits a Form MA-W-9 requesting an additional remittance address. The request must give the reason for an additional remittance address, for example, a different office has been designated for certain payments.
A Form MA-W-9 or a T&C or T&C HSS is not required to establish another remittance address unless the vendor is also changing its legal address, legal name or TIN. To ensure that payments are not
misdirected to an improper address, a Department must verify that the submission is valid by confirming that the request was submitted by an authorized signatory of the vendor. See
Verification of Vendor Information and Vendor Authorization above.
Remittance Addresses and Assignment of Payments
An additional remittance address is sometimes requested when a vendor wishes to assign payments to a third party. Even though a Department always has the right to prohibit the assignment of performance, a Department can not prohibit the assignment of payments to a third party payee. See M.G.L. c. 106 ? 9-
The Department has an obligation to verify that the request for the assignment of payments is legitimate and requested directly by the vendor and not the third party. Absent a court order (verified by the Office of the Attorney General), a Department has no obligation to honor any demands for assignments made by a third party, even if the third party produces an assignment agreement signed by the vendor. The Department must still obtain confirmation from the Contractor that the assignment is allowable and a W-9 with the new remittance address is submitted.
In order to assign payments, the Department must establish a new remittance address, NOT a new
legal address for the vendor. Payments must be made using the Contractor’s TIN and vendor code,
since the contract authorizes payment for the vendor’s performance and tax reporting must be made based upon the Contractor’s TIN. The only difference occurs at the time of payment, when a Department chooses the remittance address code for the third party. The division line or the remittance record may be used for “or third party name.” Payment is recorded as issued to the Contractor, but the check or EFT rd party payee address. will be sent to the 3
In some cases, vendors will request that all payments be issued to a third party, from any Commonwealth Department. The request can also be accommodated by creating a new remittance address and having
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the vendor instruct all active Departments to issue payments using the new remittance address. Again,
the vendor’s main remittance address MAY NOT be changed to the third party address since the contract authorization for payments and resulting tax reporting responsibilities remain with the vendor. Any MA-W-9 submitted to change the legal address to a third party’s address will require legal signoff from CTR prior to processing.
Some vendors will request that a new vendor code be set up for the third party so that all payments are automatically issued to the third party. This option is also inappropriate. Departments MAY NOT
establish a separate vendor code for a third party payee in order to issue payments directly to the third party, instead of to the vendor. The third party is not a signatory on the vendor contracts and has no authorization to receive payments directly from a Department. All payments under a contract must be issued in the vendor’s name and the tax reporting must be made to the vendor, even if payments
are assigned to a third party.
Additional Remittance Addresses for Municipalities Prohibited
Unless otherwise provided by law (and except for the payment for fees as provided by statute), Departments may not establish additional remittance addresses for cities or towns. Each city and town is assigned a single remittance address for all payments. All payments must be made to the Treasurer of the local governmental entity. See Policy “Contracts – Contractor Authorized Signatory Listing” .
Contractor Legal Name or Legal Address Change Only
If a Contractor changes its legal name or address (or both) but does not materially change its organizational structure, financial condition, procurement or contract obligations, the Department may continue the underlying contract(s) without amendment, an interim contract, or a new procurement.
Procedurally, the Contractor must notify any Department with which it has contracts of its legal name change with documentation supporting the change. The contracting Department is responsible for updating the Vendor/Customer file with the new information.
; When the legal name changes, the Contractor is required to sign a new Commonwealth of
Massachusetts W-9 Form and applicable “Commonwealth Terms and Conditions” to reflect the
legal name change (and Legal Address if both are changing). If just the Legal Address is changing,
only a new MA-W-9 Form is required. The T&C, T&C HSS and W-9s are filed along with a
Vendor/Customer Modification (VCM) with the Office of the Comptroller, Accounts Payable Bureau. ; Underlying contract transactions and payments are not impacted; however, it is good business
practice to identify the new legal name on all contract and payment transactions.
Note: Departments must also update the Comm-PASS Contract record to reflect the most current
information and any MMARS records to ensure that the encumbrances and payments reflect the correct legal name of the Contractor. See Amendments, Suspensions and Terminations Policy for more
information on Contractor changes and requirements.
Material Changes in Contractor Identity
A change in the Contractor’s Tax Identification Number (TIN) usually signals a material change in the Contractor’s identity such as a merger, acquisition, consolidation or other organizational restructuring. When this occurs, the procuring Department (or Procurement Management Team (PMT) for 801 CMR 21.00 contracts) must determine the impact on its contracts. A material change in Contractor identity occurs whenever the legal name, organizational structure, Tax Identification Number (TIN), Vendor Code or other change occurs in a Contractor from what was presented in the Contractor’s response to a procurement.
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If the Commonwealth Terms and Conditions apply to the contract, this contract contains provisions on termination and contract assignment which assert the Commonwealth’s control over with whom it does
business. While a Contractor may freely make whatever organizational or structural changes it wishes, if it involves a material change to its identity (as noted by a change in Taxpayer Identification Number), then its existing contracts may terminate. Further, a Contractor may not unilaterally assign or
delegate its responsibilities or duties under a contract to another entity. The procuring Department has the sole authority to determine what to do with the remaining contract performance in all such instances.
When faced with a material change in Contractor identity, a Department must determine the best interests of the Department, what actions are appropriate to prevent a lapse in any necessary services or a project, the most cost-effective actions given available resources and funding, and what actions will maintain the integrity of the original procurement. See Amendments, Suspensions and Terminations Policy for more
information on material changes in Contractor identify and available options and requirements.
Vendors can see their scheduled payments and payment history by logging into VendorWeb on the CTR
Web Portal. VendorWeb lists the tentative scheduled payment date or the actual payment date, payment number, vendor invoice number, contract number, line amount, any associated text information and the Department making the payment in the Payment History section. In response to the vendor community, the VendorWeb application has been enhanced with a more secure log-in procedure. To use the enhanced log-in procedure, a user is required to enter the VCUST code as well as the last 4 digits of the Vendor’s TIN, i.e. the vendors’ EIN or independent Contractor’s SSN.
Filing of FORM MA-W-9 or W-8 for Customer Registration
The MMARS Vendor/Customer File contains information on customers. These customers enter into a business or service relationship with the Commonwealth of Massachusetts to purchase goods or services from the Commonwealth in accordance with provisions of law or statute.
Every effort should be made to obtain either the Social Security or Taxpayer Identification Number (TIN) for all customers who enter into an accounts receivable relationship with the Commonwealth. This information can be obtained by requesting that a customer complete a Form MA-W-9 (Request for
Taxpayer Identification Number and Certification) or a Form W-8 (foreign vendors). A TIN will either be:
; a Social Security Number (SSN) issued by the Social Security Administration (SSA) for
; an Employer Identification Number (EIN) issued by the IRS for non-individuals, such as trusts,
estates, partnerships, corporations, local government entities, etc.
Customers are classified as either a type "I" for an individual or a type "O" for Sole Proprietorship, Partnership, Incorporated, Nonresident Alien, Trust, Foreign, State Government, other Government, or Other.
The importance of obtaining a customer’s TIN when establishing a customer is heightened by intercept functionality. The intercept process matches the vendor’s payment TIN with the delinquent accounts
receivable customer's TIN, to offset that receivable. The intercept functionality cannot offset receivables that do not have a TIN on the customer record.
To process a receivable and bill a customer using MMARS, the following information is required:
1) a customer billing address
2) a customer account number
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3) a billing profile and
4) review and processing by CTR.
Other types of customers include a miscellaneous customer and a third-party customer.
A miscellaneous customer represents a category of receivable for which individual billings have occurred through a separate and approved delegated accounting system of a Department/entity. The miscellaneous customer option allows Departments to record aggregate billing information as one consolidated billing event in MMARS. A miscellaneous customer record requires the following information:
1) a customer name
2) a flag as a miscellaneous customer and
3) review and processing by CTR.
A third party customer code represents a single liability for which one or many parties are responsible (joint and several liability). (For more information, refer to the Third Party Billing Policy.)
New customers are processed using a Vendor Customer Create document (VCC). Modifications, changes, and additions to existing customers are made using a Vendor Customer Modification document (VCM). All of these transactions are processed through workflow to CTR for final processing.
Deletion or Inactivation of Vendors and Vendor/Customer File Purge
Vendor requests for deletion and/or Department requests for inactivation of a vendor are managed by the CTR Accounts Payable Bureau. The vendor or Department must provide the reason (e.g., merger, buy-out, etc.) for the action requested. Validated vendor requests for deletion are communicated to affected Departments and handled expeditiously, provided the deletion would not disrupt current or close out business.
In considering requests for inactivation, CTR reviews any outstanding contractual obligations recorded in MMARS and other system dependencies that may apply to the vendor to ensure there is no interruption of business for other Departments, unless warranted by a court order, oversight agency directive or as directed by the Comptroller.
Inactive vendors and other vendors that have been deleted are purged periodically from the Vendor/Customer file in MMARS (W-9s and T&C or T&C HSS will also be archived for these vendors). In the event a purged vendor seeks to do business with the state, the vendor is required to submit a new MA-W-9 and a new T&C or T&C HSS (if applicable). CTR will determine and communicate the purge cycle and purge criteria for vendors that are listed as active but have not had any activity in the system for an extended period of time.
W-9 for the Commonwealth as Vendor
Departments may be asked to provide proof that the Commonwealth is a tax exempt entity or proof of the Commonwealth’s TIN. CTR is the Commonwealth’s Tax Clearinghouse and the Accounts Payable Bureau is
responsible for the issuance of completed and signed W-9 forms on behalf of the Commonwealth which reference the Commonwealth’s TIN (Employer Identification Number (EIN)). The Comptroller issues the completed and signed W-9 form. There is only one Commonwealth TIN which covers all state Departments performing Commonwealth business.
Restriction of Warrant Payments between Commonwealth Departments
Unless otherwise authorized by law or approved by the Comptroller, a Department may not issue a check or electronic funds transfers (EFT) through MMARS payment requests (PRC, GAX, INP, PRM, RFI) either to itself or to another state Department. Payments within a Department or between state Departments must be processed as internal government transactions or another method approved by the Comptroller.
Accounts Payable – Vendor/Customer File and W-9s Page 10 of 13