Non-Payroll Payments Requiring Tax Reporting
Services Requiring Tax Reporting:
A list of common services requiring tax reporting includues, but is not limited to:
- Advertising
- Architectural Services
- Artwork (if commissioned by ISU)
- Catering Services
- Cleaning Services
- Conference Registration Fees
- Consulting Services
- Construction Services (Electricians, Painters, Plumbers, etc.)
- Courier Services
- Delivery Services
- Dental Services
- Design Services
- Directors' Fees
- Drafting Services
- Dry Cleaning Services
- Editing Services
- Employment Agency Services
- Engineering Services
- Entertainment Services
- Grant Writing Services
- Honoraria
- Landscaping Services
- Laundry Services
- Legal Services Provided to ISU (Also see Payments to Plaintiffs below.)
- Maintenance Services
- Medical Services (including Counseling Services)
- Membership Dues (only if the payee is for-profit and unincorporated)
- Pest Extermination Services
- Photographic Services
- Printing or Photocopying Services
- Proofreading Services
- Registration Fees (only if the payee is for-profit and unincorporated)
- Rental Payments
- Repair Services
- Royalty Payments
- Shipping or Delivery Services
- Speaker or Guest Lecturer Fees
- Subcontract Payments (only if the payee is for-profit and unincorporated)
- Surveying Services
- Towing Services
- Translation Services
- Transportation Services (Taxis and Limousines)
Services Exempted from Tax Reporting:
- Freight or Shipping Charges on an invoice
- Payments to a moving company
- Utilities (Cable or Satellite TV, Electricity, Garbage, Internet, Natural Gas, Telecommunications, etc.)
Other Payments Requiring Tax Reporting:
- Awards, Gifts, or Prizes (if $100.00 or above)
- House-Hunting Expenses Reimbursed to Employees (Reported on a W-2, rather than a 1099-MISC.)
- Internships (Internships and Experiential Learning programs approved by the Provost's Office for payment on a Supplier Invoice will be reported on a 1099-MISC. Payments to nonresident aliens will be reported on a 1042-S and will require 30% withholding.)
- Lease Payments
- Lodging (Hotels, Motels, etc.)
- Moving Expenses Reimbursed to Employees (Reported on a W-2, rather than a 1099-MISC.)
- Payments to Plaintiffs for Interest, Punitive Damages, Emotional Distress, Employment Discrimination, or Injury to Reputation
- (Payments to plaintiffs for physical injury, medical expense reimbursement, or property damage claims are not reportable. See IRS Publication 4345 for additional information).
- Payments to Research Subjects (if $100.00 or above)
Travel Reibursements Requiring Tax Reporting:
Travel reimbursements generally do not require tax reporting but some exceptions are:
- Reimbursement for an employee's individual meals when not in overnight travel status is reported on a W-2 form, unless the employee indicates the primary purpose of the meal was to discuss business with a non-university employee.
- Reimbursement of living expenses (lodging and meals) is reportable if the assignment is expected to last more than a year. Assignments of a year or less do not require tax reporting.
- Reimbursement of travel expenses that does not comply with the IRS Accountable Plan Rules would require tax reporting.
Disclaimer:The information above is not intended as legal advice. Please refer to www.irs.gov for additional information. Iowa State University does not provide assistance with the preparation of tax returns.