The following payments will be reported on a 1099 MISC form following IRS regulations:
- Payments made to an individual who is an independent contractor for the University.
- Payments made to a sole proprietorship.
- Payments made to a partnership.
- Payments made to a corporation when the payment is for medical, legal, or health care services.
- Payments made to LLCs that are sole proprietors, partnerships, or disregarded entities.
- Payments made to Estates and Trusts.
- Payments made for death benefits of a deceased employee.
- Other 1099 reportable events as mandated by IRS laws.
The University bases the 1099 forms on a calendar year and mails them as required by the current IRS regulations.
Examples of payments that are reportable on a 1099 form
- Payments made for services rendered by performers, speakers, consultants, or other independent contractors.
- Payments made for rental services.
- Payments that constitute an award or a prize.
- Payments to volunteers for research.
- Payments to corporations for medical, legal, or health care services.
- Payments made for interest, royalties, and card services.
Examples of payments that are NOT reportable on a 1099 form
- Payments for services to individuals employed by the University including students (these payments must be made through Payroll and are reported on a W-2 form). Please refer to the Employee vs. Independent Contractor policy to determine whether or not an individual should be paid as a University employee rather than as an independent contractor.
- Scholarships and awards for students are reported to Student Accounts and the Financial Aid Office and are reported on a 1098-T.
- Scholarships or fellowship grants that are for research or to further the individual's education.
- Payments to corporations except corporations that provide medical, legal, or health care services.
Reporting on the 1099 form is the responsibility of the Comptroller's Business Office however, fiscal agents and budget officers should be aware of the following:
- A W-9 is required for new vendors that require 1099 reporting and who are considered a U.S. person as defined by the IRS and are not an employee or student of the University. The W-9 needs the vendor's Taxpayer Identification Number (TIN), name that matches the TIN, their tax classification, and the form must be signed and dated. Individuals or companies who are non U.S. persons should present the appropriate W-8 form.
- A signed agreement should be completed for all contracts with independent contractors who are providing services to the University.
- A current mailing address is needed for 1099 reportable payments. The department should provide the Comptroller's Business Office a home address for an individual whose payment is sent to a business or university address.
- The 1099 tax forms are mailed as required by IRS regulations in the following year. The University is not required to mail or report cumulative payments of less than an amount determined by current IRS regulations.
- The University is required to remit 1099 information to the IRS as prescribed by current IRS regulations.
- There are special rules and regulations for payment of reportable income to foreign individuals and companies.