Tax Compliance Guidelines
Form 1099-MISC Reporting

Activity: Form 1099-MISC Reporting
Financial Policy:

Determination of Employee or Independent Contractor Status, FIN-ACC-630

Related Policies: IRC §3406(b)(3)
Additional Forms: Form W9
Things to Know:
  • Indiana University uses the services of individuals, including students, who are not treated as employees of the institution and also make other types of non-payroll payments, such as royalties, that must be reported on Form 1099-MISC to US taxpayers as "other reportable payments."
  • IU determines what is reportable on Form 1099-MISC by the object code applied to each payment. Tax has designated a list of object codes as reportable on the Form 1099-MISC. The link to this list is FMS Tax Services: Reportable Object Codes.
  • Part of Indiana University’s tax responsibility is obtaining a valid Taxpayer Identification Number (TIN) from the individual to whom the employer makes a "reportable payment." The TIN is the Social Security number for individuals or an Employer Identification number for U.S. entities. If the individual does not provide a valid TIN or the IRS notifies the University that the payee's TIN is missing or incorrect, the University must withhold at a designated rate from the individual's payment (backup withholding) per IRC §3406(b)(3). It also is required to solicit the payee for the correct information. University policy is to solicit the payee for a valid TIN using Form W-9 FMS  Tax Services: Form W-9
  • Reportable payments to non-US persons or corporations are reportable on Form 1042-S and have a different set of rules.
  • See TAX Frequently Asked Questions

Please contact University Tax Services, taxpayer@iu.edu for more information.

Training:
FMS Training Catalog - Tax

CATS Presentation
:
FMS TAX- Object Code Usage for 1099 Reporting