Pol-Reporting of Non-Payroll Payments

policy reporting non payroll payments modified Fri Jan 31 2020 09:57:03 GMT-0500 (Eastern Standard Time)

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University of Louisville

OFFICIAL
UNIVERSITY
ADMINISTRATIVE
POLICY

POLICY NAME

Reporting of Non-Payroll Payments

EFFECTIVE DATE

February 3, 2003

POLICY APPLICABILITY

This policy applies to all University Employees (administrators, faculty and staff).

POLICY STATEMENT

The University of Louisville is required to report non-employee miscellaneous income payments totaling $600 or more per year to the Internal Revenue Service on Form 1099-M. Examples of reportable payments include:

  1. Payments to non-employees for services rendered including payments for fees, awards and prizes, commissions and personal service contracts.  
  2. Payments to recipients other than real estate agents for rental of property and equipment.  
  3. Royalty payments of $10 or more per year.   
  4. Prize and award payments that are not for services rendered.  
  5. Medical, health and legal service payments including payments to corporations.  
  6. Payments to an employee for services unrelated to the employee's position, such as blood donor payments.  

With the exception of medical payments, only payments to individuals and partnerships are 1099 reportable. Scholarship and fellowship payments are not within the scope of 1099 reporting. If a service is required to be performed as a condition for receiving a grant, the payments are reported through the W-2 reporting process.

REPORTING OF NON-EMPLOYEE COMPENSATION PAYMENTS

Request for 1099 reportable payments must include the following information:  

  1. Full name of payee
  2. Permanent home address  
  3. Social security number or tax identification number  
  4. Payment description  


The W-9 form and Vendor Survey should be obtained prior to the service being provided, and they should be submitted with payment request (or at the time the vendor number is requested if PO-related).

FILING FORM 1099-M WITH THE INTERNAL REVENUE SERVICE

  1. The Controller's Office will prepare a Form 1099-M for each recipient who received at least $600 in non-employee compensation payments during a calendar year. The 1099's will be mailed to each recipient no later than 31 days after the close of the calendar year (January 31).
  2. The Controller's Office will submit a copy of the 1099 information to the Internal Revenue Service. The file will be mailed no later than February 28th each year. 
  3. The Controller's Office maintains a file which lists all the information submitted to the Internal Revenue Service.
  4. After the file is submitted to the IRS, any subsequent corrections are prepared manually on the Form 1099-M. A copy is sent to the recipient, another copy is sent to the Internal Revenue Service, and a copy is retained by the Controller's Office.


ADMINISTRATIVE AUTHORITY

Vice President for Finance and CFO

RESPONSIBLE UNIVERSITY DEPARTMENT/DIVISION

Controller’s Office
Service Complex
Louisville, KY 40292
Phone:  502.852.7072
E-Mail: controll@louisville.edu

HISTORY

Reviewed: March 4, 2010

The University Policy and Procedure Library is updated regularly. In order to ensure a printed copy of this document is current, please access it online at http://louisville.edu/policies.