Michigan Tech is required to file Form 1099-MISC and Form 1099-NEC for each calendar year, for the following items:

• Royalties: $10 or above—Box 2 of 1099-MISC
• Rents: $600 or above—Box 1 of 1099-MISC
• Prizes or Awards: $600 or above—Box 3 of 1099-MISC
• Non-Employee Compensation (parts/materials and services): $600 or above—Box 1 of 1099-NEC
• Direct Sales: $5000 or above—Box 7 of 1099-MISC
• Medical or Health Care Payments: $600 or above—Box 6 of 1099-MISC
• Attorneys (gross proceeds)—Box 10 of 1099-MISC
• Deceased Employees Beneficiary: Other Income—Box 3 of 1099-MISC

These examples may include individuals, sole proprietors, partnerships (including LLC, LLP), or d/b/a businesses.

• Exceptions include:
  • Generally, payments to corporations with some exceptions
  • Payments for goods and merchandise only
  • Awards and/or Wages paid to employee—Should be reported on W-2
  • Business travel allowances or reimbursements—Accountable plan (need receipts)
  • Scholarships/Grants/Fellowships for US residents
  • Tax-exempt organizations
  • Governmental agencies
  • Nonresident Aliens—Should be reported on 1042-S
• Examples of services include all services performed (including parts and service), honorariums, director’s fees, guest lecturers, commissions, performances, entertainment, accountants, architects, etc. This may even include payments for meetings, catering, printing, copying, software, fabrication, etc.
• We may be assessed penalties for the following:
  • Incorrect Taxpayer Identifications Numbers (TIN)
  • Failure to issue 1099 when required
  • Incorrect amount(s) on 1099
  • Failure to back-up withholding for incorrect TIN: 24%
• Collection of W-9 Form from all potential vendors in which a Form 1099-MISC or 1099-NEC may be required.
• 1099 Series forms will be sent to all recipients by January 31.

For additional information regarding independent contractors, contact the Accounts Payable, Human Resources, and/or Purchasing department.

Dependent Care

Dependent care expenses above and beyond regular dependent care costs that directly result from travel on university business will be reimbursed.  Qualifying individuals eligible for reimbursement under this policy are the same as those allowable for Flexible Spending Accounts.

Procedure

The amount to be reimbursed for dependent care expenses above and beyond regular dependent care costs cannot exceed $300 per day per trip.  Per the Internal Revenue Service, this is a taxable reimbursement.  Any applicable FICA, federal and state taxes on the amount reimbursed will be withheld from a future paycheck.

A qualifying individual is a dependent under the age of 13 for whom the employee claims a dependency exemption for tax purposes or a spouse or dependent who is physically or mentally not able to care for himself or herself.

The care provider cannot be the employee’s dependent for tax purposes, the employee’s child under the age of 19 or the employee’s spouse.

To claim reimbursement of dependent care expenses above and beyond regular costs, the employee does the following:

1. Pays the care provider with personal funds
2. Completes the Dependent Care Reimbursement Form which includes:
   • Dependent care provider’s name and address
   • Name(s) and age(s) of qualifying individuals for whom care was provided
   • Dates of service provided
   • Amount to be reimbursed
     Note: An original paid bill or a receipt from the dependent care provider must be attached to the form.
3. Attaches the Dependent Care Reimbursement form and original receipts to the travel expense form.

Telephone

Business and personal telephone calls made while traveling internationally will be reimbursed up to $10 per day without receipts. An original receipt (hotel bill or telephone bill) is required for telephone charges in excess of $10 per day.

Other Miscellaneous Expenses

Incidental expenses, such as bridge toll charges, parking fees, and excess baggage handling charges, require receipts when the costs exceed $10 (unless paid for with the University PCard in which case detailed receipts are required for all transactions). Laundry and dry-cleaning services are allowed when expenditures are supported by out-of-town receipts and are reasonable in nature.

Elaine Loughlin: In Ireland, too many women still live in fear in their own homes

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Sat, 22 Jul, 2023