Procurement Policies and Procedures
Disbursements
1099 ISSUES
The Internal Revenue Service (IRS) requires Clemson University to report certain types of payments to the recipient on Form 1099 at each calendar year end.
When completing a vendor addition form, review the “1099 Information” section carefully to determine if the vendor should be noted as a 1099 vendor. A federal tax identification number (FEIN) or social security number (SSN) is required for all new vendors. The vendor should complete and return a W-9 form before payment is made.
W-9 Fillable
General Exceptions: Generally payments to the following are NOT required to be reported on a Form 1099:
• Payments to corporations
• Rent payments to real estate agents
• Payments to a tax exempt organization, US government, or State government
• Travel reimbursements to consultants, speakers, etc (see note below)
Required to Report: The following types of payments are to be reported on a Form 1099: (this is not to be considered an all inclusive list)
• Rents (when paid to other than a real estate agent)
• Royalties
• Services
• Prizes and Awards
• Entertainers (refer to “Entertainment Contracts” section of these guidelines)
• Accountants
• Architects
• Attorneys (even if paid to a corporation)
• Medical and health care payments (even if paid to a corporation)
Travel reimbursements with appropriate supporting documentation to consultants, speakers, etc. are to be charged to account 7039 “Travel – Speakers/Consultants.” These amounts will not be included in the individuals Form 1099.
For questions concerning 1099 issues, please contact Liz Brewer at 656-5594 (cowarde@clemson.edu)