Charges paid for any type of advertising are reportable income and we are required to code payments for 1099 purposes (unless the company is incorporated). If a certain dollar threshold is met during the calendar year, a 1099 form must be generated to the vendor at the end of the year.
Do not pay for advertising and ask for reimbursement. This gives the appearance of avoidance of compliance rules and could result in IRS auditing exceptions. Submit a completed, approved check request with the invoice or online printout attached, and payment will be processed directly to the company/organization. Some reimbursements have been processed only after review of the type of company/organization, the dollar amount paid during the calendar year and where it appeared the company would not be paid enough to warrant a 1099 form.
Gift certificates are not to be purchased and given as compensation to any individual (including students, faculty, staff) who gives something (time/value) to the university. IRS views gift certificates the same as a cash payment and the dollar amount as reportable income. We track payments for services for tax reporting purposes. If a certain threshold is met during the calendar year, a 1099 tax form is generated and sent to the individual. When some other form of compensation is given the individual instead of direct payment, we can’t track or match the payment from one department with the activity of other departments.
In compliance with IRS regulations, all payments to employees of the university must be processed through payroll. A check request/honoraria form may be submitted for all other individuals.
Food, Alcoholic Beverages, Entertainment and Gifts
No food or alcoholic beverage purchases, entertainment or token items, flowers or gifts are to be paid from state funds. (Subsistence/meals included on travel reimbursement forms may be paid from state funds). Food service invoices cannot be paid from state funds unless the Chancellor or designee was present at the event and unless the Chancellor initiated the meeting and gave written approval in advance (specific rules apply). The Chancellor’s attendance at a social event does not constitute use of state funds to pay for the event. No late fees are paid from state funds.
Campus Bookstore Purchases
Purchases from the Campus Bookstore need to be made with University PCards and must be in compliance with the University Purchasing Policy and University Spending Guidelines. Learn more about PCards here.