Payment to Visitors Tax Implications

The Non-Employee Visitor/Guest Travel Reimbursement form was implemented in April 2019. See below for guidance on non-employee reimbursements.

  1. Non-Employee Visitor/Guest Travel Reimbursement form: is to be used to support travel expense reimbursement for non-compensated Clemson University guests (governed by Clemson’s accountable plan/policy), and must be attached to any Non-Supplier Payment Request form in buyWays.  When submitting for travel expense reimbursement only, you must use Account Code 7039 for travel reimbursement for non-employees or 7053 or 7561 for travel reimbursement for job candidates. This form cannot be used to reimburse travel expense or other reimbursements to individuals other than visitors/guests are not governed by Clemson’s accountable plan/policy.

  1. Payments to compensated individuals other than employees (i,e. independent contractors) for “reimbursements” from Clemson in connection with services provided should NOT use the Non-Employee Visitor/Guest Travel Reimbursement form for any agreed upon expense reimbursement. These should be reflected within their fee structure and may contain a travel reimbursement in addition to a fee. All such payments should be processed using a PO and appropriate Account Code (all to be reported on their 1099).

  1. Payments to Visitors/Guests for Honoraria, Awards, or Gifts, also cannot be processed using this Non-Employee Visitor/Guest Travel Reimbursement form.  As these payments are potentially tax reportable if exceeding $600 in a calendar year, the visitor/guest must register with the University and payment can be made to the individual using the Direct Expenditure process and appropriate Account Code such as 7304 or 7306.

Independent Contractors

As a general rule independent contractors are non-affiliates. Employees/students may also be independent contractors if they perform non-employment related services such as paid disc jockey services at a Clemson event or earn royalty fees.

Reimbursements to independent contractors are tax reportable as a component of fees paid for services performed.

Proper use of Account Codes is necessary to ensure proper tax reporting for independent contractors.