Tax Compliance Guidelines
Form 1099-MISC Reporting

Activity: Form 1099-MISC Reporting
Financial Policy: FIN-PAY-IV-220, Determination of Employee or Independent Contractor Status
Related Policies: IRC §3406(b)(3)
Additional Forms: Substitute Form W-9
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 Financial Management Services: Reportable Object Codes.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). IRC §3406. 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 Financial Management 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.
Please contact University Tax Services, taxpayer@indiana.edu for more information.