Non-Employee Compensation

Internal Revenue Code Sec. 1.6041-1(a)(1)(i) requires us to report annually “salaries, wages, commissions, fees, and other forms of compensation for services rendered aggregating $600 or more” paid to non-employees on form 1099-MISC.

The reporting regulations apply to payments made to speakers for honorariums, entertainers, and other professionals for services rendered. Payments for royalties and rents are also subject to the reporting requirements.

Whenever you contract for services obtain the following information:

  • name (as it will appear on their tax return),
  • taxpayer identification number (social security number or employer identification number) and
  • complete mailing address.

Prior to engaging an individual as an “independent contractor” who will provide ongoing services, the Payroll Office must review the agreement. An Independent Contractor Checklist must be completed and provided to the Payroll Office.

Payment cannot be made until this information has been submitted to Accounts Payable. You may use the W-9 form to assist you in obtaining the appropriate information. The information may be obtained by phone (signatures are not required).

If you are contracting with individuals from a foreign country please have the individual complete the International Visitor Questionnaire and contact the Payroll Office for detailed instructions.