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Personal Service Payments

Requirements 

The IRS requires the university to report all payments for services to non-corporate entities, individuals and partnerships. Service payments include honoraria, computer services, speeches, tutoring, etc. Amounts paid to non-employees for services totaling more than $600 in a calendar year will be reported on a 1099-MISC. Payments for merchandise are not reportable. DPO payment requests for personal services to university employees are considered wages, and will be paid through payroll and reported on a W-2. 

Corporate payees must complete IRS Form W-9 certifying their exemption from 1099 reporting prior to receiving a check from Trinity University. Payees who fail to provide the required information for IRS Form W-9 are subject to the 30% backup withholding and/or penalties for non-compliance. 

The federal government requires the name, address, and taxpayer identification number (social security or partnership) for each individual or partnership receiving payments. Individuals or partnerships who fail to provide this information are subject to the 30% backup withholding and.or other penalties for non-compliance. If the individual or partnership is from a foreign country, the government, in most cases, requires that 30% be withheld and remitted. 

Procedure

Payment requests to non-employees for services are submitted on a department purchase order with the required information included. If the documentation is not immediately available, it must be furnished to Accounts Payable before the check can be released.