IRS W-9 Reporting Requirements
Board of Regents Regulation R05.02.03 Accounting and Fiscal Reporting states under Section B – Compliance Reporting:
“The University shall report all payments to the Internal Revenue Service as required by law and regulation. There shall be a determination of the status as an independent contractor, honorarium, or employee prior to initiating work or payment for such work. All payments shall be reported in accordance with Internal Revenue Service Regulations.”
For service providers that qualify as independent contractor, IRS Form W-9: Request for Taxpayer Identification Number and Certification is required by the University. This is in order to accurately obtain a social security or employer identification number and other information regarding how the individual, company or organization reports their income for IRS tax purposes. The University requires a W-9 for all vendors and the responses on the W-9 as well as the type of service provided will determine if the University is required to report the income on IRS Form 1099 at the end of the year.
For honorariums to individuals, which are typically payments given as token of appreciation; the same requirements apply in order to accurately obtain the individuals social security number for tax reporting purposes.
For new service providers, or new honorarium recipients, UAA departments may obtain a W-9 as appropriate in order to expedite a payment and submit the form with other backup information, contract or scope of work after completing a Banner requisition.
For service providers or honorarium recipients that are already in the vendor database in Banner, Procurement Services or Accounts Payable will determine if there is already a W-9 on file prior to the issuance of a purchase order or payment, and if not send the service provider a W-9 that must be completed before purchase order is issued or payment made.
Additionally, winners of prizes and recipients of awards (cash or non-cash) not related to services provided that exceed $25.00 also require Form W-9. Examples include juried art awards, raffle proceeds and other such winnings.