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Taxpayer Identification Number

The University must obtain a taxpayer identification number from workers who will be paid as independent contractors.

Failure to Provide Taxpayer Identification Number

If an independent contractor is unable or unwilling to provide a taxpayer identification number, the University must withhold 31% of the payment as backup withholding.

Form 1099-misc.

The University will file Form 1099-Misc, when required, for all independent contractors earning $600 or more per year.

Reimbursement of travel, gift and entertainment expenses to independent contractors

• Travel or Gift Expenses
  Under Internal Revenue Service rules, the University is not required to maintain detailed records of travel or gift expenses paid by a contractor, even if those expenses are reimbursed by the University.
• Entertainment Expenses
  • Contractor adequately accounts to University for expenses. 
    The University must maintain records documenting each element of such expense.
  • Contractor does not account to University for expenses.
    The University may pay entertainment expenses as part of a contract amount. If the contractor is not required to document those expenses to the University in order to be paid for them, then the University does not need to keep detailed entertainment expense records.