110 - IRS Reporting Requirements
Procurement Services 110: IRS Reporting Requirements
Purpose
To provide departments with a method of expediting payments for independent contractors and honorarium recipients
Reference
University of 熊猫在线视频 Procurement Manual (not available online)
Definitions
Honorarium: A gift or payment to an individual given as a token of appreciation for
a service that has been provided free of charge.
Independent Contractor: An individual or organization contracted to perform a particular
service and/or produce an agreed-upon outcome, where there is no right to specifically
control and direct the manner in which the job is done.
Policy
General Requirements IRS Form W-9 (Request for Taxpayer Identification Number and Certification) is required for the following payments:
- Vendors
- Independent Contractors
- Honorarium Recipients
- Prize and Award Recipients (cash or non-cash if the value exceeds $25. Examples include juried art awards, raffle proceeds and other such winnings).
This form is needed to accurately obtain a social security or employer identification
number and other reporting information for the individual, company or organization
receiving a payment. The responses on the W-9 as well as the type of service provided
will determine whether the university is required to report the income to the IRS
on Form 1099 at the end of the calendar year.
Expediting Payment For new service providers or honorarium recipients, UAA departments may expedite
payments by obtaining and submitting a W-9 form along with the other backup information
after completing a Banner requisition. If no form is provided with the backup information,
Procurement Services or will verify the in-file existence of a W-9 Form. If no W-9 is found, a form will
be sent and completion required before the purchase order will be issued or payment
made.
.
Effective: 10/25/2005