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.
- 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.
- 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).
- 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.
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.