lonemountain     
Overview of the campus
People walking on Lone Mountain
flowers_150   
Negoesco soccer field at the University of San Francisco     
churchdomes_150  
Golden Gate Bridge at noon  

Policy on Tax Treatment of Payments Made to Individuals Appendix A

ACCOUNTS PAYABLE1

Payment Type2

Income Taxable?

Wages (withhold income and FICA taxes)?

Reporting Requirement?3

Cell phone and tablet computer reimbursements4 No No 1099-MISC, Box 7, Nonemployee compensation
Honorarium payments5 Yes No 1099-MISC, Box 7, Nonemployee compensation
Human subject payments Yes No 1099-MISC, Box 3, Other income
Independent contractor payments6 Yes No 1099-MICS, Box 7, Non-employee compensation
Life insurance coverage over $50,000 Yes Yes W-2
Moving reimbursements - removal of household effects, transportation, lodging, etc.7
No
Yes None
Moving reimbursements - meals, temporary housing, house hunting, etc.
Yes
Yes W-2
Non-cash gifts and awards8 No No None
Prizes and awards - cash Yes No 1099-MISC, Box 3, Other income
Travel reimbursements9 No No None
Travel reimbursements - employee trips of more than 1 year Yes Yes W-2 
Travel reimbursements - pre-employment interview No No None
Travel advances - excess amount unrecovered Yes Yes W-2
Travel allotments - NCAA No No None

PAYROLL10

Payment Type2

Income Taxable?

Wages (withhold income and FICA taxes)?

Reporting Requirement?3

Wages, including overload, overtime, stipend, and other pay Yes Yes W-2
Faculty rental subsidy Yes Yes W-2
Merit, bonus, and similar cash awards Yes Yes W-2
Sabbatical pay Yes Yes W-2
Severance pay Yes Yes W-2
Training related to current job
No
No None
Uniform allowance
Yes
Yes W-2
Vacation (including final vacation pay), sick leave, and holiday pay Yes Yes W-2

STUDENT SYSTEM

Payment Type2

Income Taxable?

Wages (withhold income and FICA taxes)?

Reporting Requirement?3

Scholarships and Fellowships      
Tuition, fees, books, and required expenses11 No No 1098-T, Box 2, Amounts billed for qualified tuition and related expenses
Expenses in excess of required expenses (e.g., room, board, travel, stipends, etc.) No No Payments for such expenses are not separately reported but are included in Box 5, Scholarships or grants, on the 1098-T. See Appendix B.
Scholarship or fellowship requiring the performance of services Yes Yes The service portion of the award must be paid through payroll and reported on the W-2.
Employee Tuition Remission12
   
Undergraduate courses No No None
Graduate courses, job-related
No
No None
Graduate courses provided to graduate teaching and research assistants
No
No None
Graduate courses, not job-related, up to $5,250 per year No No None
Graduate courses, not job-related, exceeding $5,250 per year Yes No W-2


1Taxable payments made to a non-employee totaling $600 or more for the calendar year are reportable on Form 1099-MISC. Non-wage service payments made to nonresidents of California are reportable on FTB Form 592-B and are subject to withholding of 7% if the total payments made to the individual are more than $1,500 for the calendar year. Any taxable payment made to an employee through AP would be reported on the employee’s Form W-2, subject to withholding of applicable income and FICA taxes. 
2 Payments made to nonresident aliens are subject to separate federal income tax withholding and reporting rules. See Nonresident Alien Payments Policy (under construction). 
3Under the combined federal and state electronic filing program, the IRS forwards Form 1099 information filed with it to the participating states, including California.
4See Electronic Communication Policy
5See Honorarium Payments Policy
6See Independent Contractor Policy (under construction)
7See Moving Reimbursement Policy
8See Non-Cash Gifts, Awards and Incentives Policy
9See documentation and reporting requirements set forth in the Travel and Entertainment Policy
10Wages paid to an employee who is hired or assigned to work out-of-state may be subject to withholding in that state. See Out-of-State Income Tax Withholding Form and instructions.
11Payments for both graduate and undergraduate courses are tax-free, including courses taken in a prior academic term or calendar year.
12For the tax treatment of tuition remission provided to a spouse, domestic partner, or other dependent, see the Application for Tuition Remission.