1099 Withholding & Reporting

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Form 1099-MISC

 
The Form 1099-MISC is used to report payments made to a person or business
that is not being paid as an employee of Columbia University. These payments are
called “non-employee compensation”. Form 1099-MISC is required when total
payments for the year exceed $600. The Form is provided by the University to
the IRS and to the person or business that received payment. It will be mailed to
recipients by January 31st of the following year.
 
On Form 1099-MISC the income earned will be recorded but there will not be any
deductions for federal, state or local income taxes or social security, etc.. Form 1099
recipients are considered non-employees therefore, the University is not required to
pay tax or make withholdings on these payments. These recipients are obligated to
make their own tax deductions and forward payments to the IRS. Tax liability starts
when total payments for the year exceed $600.
 
Typically the 1099-MISC Forms are given to independent contractors (or
freelancers) as a record of the income they received. They are also issued for the
following type of payments when the annual total exceeds $600:
 
Prizes
Gifts
Awards - Honoraria
Independent Contractors
Consultants
Subcontractors
Non employees
Employees providing services outside of their regular duties/hours
Study Subjects
Study Participants
Patient Donors
Partnerships
LLCs
Law Firms
Payments for Rents & Royalties
Payments for Medical Services
 
The IRS requires that Columbia have a Taxpayer Identification Number (TIN) on file
for every person or business that receives a reportable or taxable payment. This
information is provided on Form W-9. US Citizens and Resident Aliens are required
to complete a Form W-9 before receiving any payments from the University. A TIN
can be any of the following: a Social Security Number (SSN) an Individual Taxpayer
Identification Number (ITIN) or an Employer Identification Number (EIN).