What is the importance of 1099 reporting and W-9s?
Macalester College is required by the IRS to report any payments for services performed by a trade, business, or individual not treated as employees. Examples of these types of payments are: honorariums, gifts, donations, or services rendered. Before a check can be processed, a Taxpayer’s Identification Number (TIN) or a Social Security Number is required along with the full given name and a current address. Failure to provide a TIN or SSN will delay the check writing process and/or require backup withholding of 28% and submit this amount to the IRS. This applies even when the amount of the payment is below the normal threshold of $600 before 1099 filing is required.
