Effective: 10/25/2005
| Revised: |
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 Alaska 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:
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
Accounts Payable 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.
