Accounting: Personal Service Payments, Including Foreign Visitors

I. Requirements: 

  1. The Institute is required by the IRS and the State of California to report non-payroll expenditures to individuals and partnerships for personal services (payroll expenditures are reported through the payroll system and payments for merchandise are not reportable except where required by law). 
  2. The government requires the name, address and taxpayer identification number (social security or federal ID number) for each individual or partnership receiving payments.

II. Procedure: 

  1. It is preferable to have payment requests submitted to Accounting with the required information. If this is not possible then the information must be furnished to the Accounting Office before the check can be released. 
  2. Any question relating to types of payments covered by this policy should be directed to the Accounting Office. 
  3. The Accounting Office will maintain records of all such payments and complete the necessary reports for mailing to the government. Required information copies will be mailed to recipients for their personal tax records after the end of the calendar year.
Policy Category:
Financial Management