Accounts Payable Information
- Payments to Independent Contractors
- Payments to Non-Employees
- Payments to Guest Lecturers
- Independent Contractor Forms
Payments to Independent Contractors : Fees for Services and Travel Expenses
An independent contractor is an individual or non-corporate business entity that provides personal services to the University. Some examples of independent contractors are consultants, editors, photographers, caterers and performers. When doing business with an independent contractor, an Independent Contractor Certification form is required. Refer to, "Services Exempt from Independent Contract Review" to view the transactions that are exempt from completing the Independent Contractor Certification form.
Costs of travel performed under the terms of the engagement should be negotiated and included as part of the total contract fees. Fees and travel expenses should be submitted on an invoice. If no invoice is presented, a SAP Online Payment Request (FV60) may be submitted for payment. All payments made to independent contractors are tax reportable on Form 1099. As independent business entities, these non-employees must maintain their own records and determine their own taxable income. Form 1099 is for information only; it is not intended to report the exact amount of taxable income, but the amount that has been paid to the recipient. Obtaining proper guidance in tax return preparation is the responsibility of the independent contractor.
Questions, please email apssc@jhmi.edu
Payments to Non-Employees: Guest Lecturers, Honorariums, Prizes and Awards
Honorariums, prizes, awards and other such one-time payments to non-employees are tax reportable income to the recipients. Reimbursement of travel expense is not tax reportable if the guest speaker, volunteer or other independent party is providing services to the university and adequate documentation is obtained.
Departments may choose to reimburse these parties for expenses incurred in connection with their travel to the University. Travel reimbursements are not included in the gross amount reported on Form 1099. If such payments are made under the accountable plan rules, as defined by the Internal Revenue Service, the Non-Employee Travel Reimbursement form provides adequate documentation meeting the accountable plan rules. Travel reimbursements to guest lecturers must be made using the Non-Employee Travel Reimbursement form. The form should reflect all expenses associated with the visit. Online Payment request do not provide adequate information to reimburse non tax reportable travel expenses to non-employees. Therefore, any payments made using check requisitions will be considered tax reportable on Form 1099.
The IRS has clarified that payments to visiting lecturers for travel will not be subject to tax withholding and reporting if they are made under the accountable plan rules. Non-Employee Travel Reimbursement form provides adequate documentation meeting the accountable plan rules. Payments for guest lecturers travel expense must be made using Non-Employee Travel Reimbursement form. The form should reflect all expenses associated with the visit. Check request forms cannot be accepted. Non-Employee Travel Reimbursement Form is available from the Controller's Office website; see "Forms Library" on the home page at http://finance.jhu.edu.
Questions, please email apssc@jhmi.edu
