How to be Paid Promptly by NJ
The following information can simplify and expedite the payment process for vendors doing business with the State of New Jersey. Businesses can receive payment for goods and services purchased by the State government within as few as 30 days by following some simple instructions.
The key document that controls the initial entry into the accounts payable section of the New Jersey Department of the Treasury is:
- The State of New Jersey Agency Purchase Order/Invoice
If a business does not have a purchase order in its possession with an authorized signature under agency approval, the company should not start work or provide goods or services.
Let's assume the business has:
- Bid competitively and been awarded a contract, or
- Quoted (written or telephone) a price to a using agency under the delegated purchasing authority.
Now the Payment Process Has Officially Begun
In either of the above instances the business may receive the following set of forms, which should be considered the work order and authorization (the terms "Payee" and "Vendor" are used interchangeably):
- State of New Jersey AGENCY PURCHASE ORDER
- State of New Jersey PAYMENT VOUCHER
Check the Agency Purchase Order carefully. Verify that the prices are the same that you bid or quoted. Read the document carefully and understand the terms and conditions of the order or job.
Clarify any discrepancies before performing the service or supplying goods. Failure to obtain prior authorization to change the order in any way will delay payment.
Perform the service or supply the goods authorized.
Upon the State's acceptance of the service or goods, complete and mail the payment voucher to the address listed in item (E) "Send Completed Form To:"
Read the payee instructions on the reverse side of the Payment Voucher.
If not already filled in by the agency placing the order, complete items (A) through (D).
Sign the "Payee Declaration" (F). Be sure to include payee's title and the current date.
In "Payee Reference Number" (G) include the businesses' invoice number, billing number or any other identification for reference purposes. This will be recorded on the check stub and assist in payment identification. Do not use more than 30 characters.
Note: Electronic invoicing is not currently available through NJSTART. In the interim, vendors should submit invoices to the Department, Division, Bureau or Institution to which the materials or services were furnished. Invoices should include the following: PAYEE IDENTIFICATION NUMBER: Federal employer identification (FEIN) number assigned to the business or the Social Security number (SSN) if the payee is an individual; VENDOR ID NUMBER: This is your unique Vendor ID number from your NJSTART profile; PURCHASE ORDER (PO) NUMBER: From the PO you received and acknowledged; ITEMS & QUANTITY: List of items or services, quantity, description, unit price, and amount; TERMS: Terms of sale, such as "NET", 15 days," etc.; TOTAL AMOUNT DUE: Total amount of invoice; PAYEE NAME AND REMIT ADDRESS: The name of the individual or company submitting the invoice and the complete remit-to-address; INVOICE NUMBER: Invoice or billing number for reference purposes; DATE OF INVOICE: Date the document is prepared and signed.
Keep a record copy of the payment voucher.
Remittance address and other changes (business address, email, phone number, etc.) should be made in NJSTART, the State’s electronic procurement system, by each vendor’s Seller Administrator.For additional assistance, please email firstname.lastname@example.org or call NJSTART Vendor Support at (609) 341-3500.
It is the businessperson's responsibility to get written agreements or contracts from prime contractors performing State contracts.
Finalize working hours, pay, overtime, holidays and expected project completion dates. Determine whether the prime contractor is bonded. If necessary, contact the bonding company that issued the performance bond. Keep accurate records of the hours and days you worked.