The University reports payments for most non-employee compensation, rents, royalties, and certain other vendor payments to the Internal Revenue Service using Form 1099. The Accounts Payable office is responsible for issuing all Forms 1099. Exceptions to issuing Form 1099 exist for certain types of vendors and for certain types of payments. Exceptions include the following:
Special Rule for Legal Services - Payments made to an attorney providing legal services (whether or not the services are performed for the University) must be reported on Form 1099. This requirement also applies to payments made to an attorney practicing as a corporation.
Special Rule for Medical Services - Payments made by the University to corporations engaged in providing medical and health care services or engaged in billing in respect to providing such services, generally must be reported on Form 1099.
Payments made by the University to independent contractors for reimbursement of business expenses are generally not reported on Form 1099 as long as the reimbursements are made in accordance with an accountable plan. In certain cases involving expense reimbursements to foreign persons, the IRS requires such payments need to be reported on Form 1042S. This determination will be made by the Accounts Payable office.
This is not an all-inclusive list of exceptions to Form 1099 reporting.
All Forms 1099 must include payee tax identification numbers (TINs). A TIN is a social security number issued by the Social Security Administration, an Employer Identification Number issued by the IRS, or an Individual Tax Identification Number issued by the IRS. Individual Tax Identification Numbers are generally restricted to certain foreign vendors who are not eligible for social security numbers. Tax identification numbers are obtained by having the vendor complete the University’s Vendor Profile form. Accounts Payable completes a TIN match with the Internal Revenue Service before processing a payment to ensure accurate information has been provided before it is recorded in the University’s vendor database. 1099’s are mailed out on or before January 31st.
This policy outlines the University’s policy on 1099 reporting.
Wage and Tax Statements
This series provides a summary record of data reported on the annual Wage and Tax Statements for the insititutional employees.