Participant Support Costs
Welcome to the Office of Business and Financial Services Open Comment Blog!
The Office of Business and Financial Services is hosting an open comment period, beginning May 14 and closing May 28 at 5 p.m. CT. In this open comment period a new policy, 8.6.12 Participant Support Costs, and corresponding process information are presented.
The National Science Foundation (NSF), the U.S. Department of Energy, the U.S. Department of Education, other federal agencies, and non-governmental organizations provide funding to support participation in Outreach programs in underserved areas and populations, promote STEM activities, bring together experts, students and faculty, and promote participation in workshops, conferences, meetings, training, symposia, etc. Multiple departments receive funding from these agencies and organizations. When departments pay participants in these supported activities, the payments are designated Participant Support Costs.
The proposed new policy and procedure will detail how payments made to participants of outreach programs and other supporting activities by the University of Illinois System are treated. The additional guidance on the Participant Support Costs webpage contains IRS reporting information, and instructions for how to process transactions.
The new policy will be found in Section 8 Payments and Reimbursements of Business and Financial Policies and Procedures Manual, the new process information will be found under the Payments to Non-Employees and Payments to Students webpages.
Please review the policy and provide feedback.
Contact: For questions contact OBFS Policies at (312) 585-9049 or obfspolicies@uillinois.edu
8.6.12 Participant Support Costs
Policy Statement
Payments may be made to participants of outreach programs and other supported activities by the University of Illinois System. These payments are taxable income to the recipient.
Payments may be made to students to participate in recruitment or public service programs on behalf of the University of Illinois System. These payments primarily benefit the system but are taxable income to the recipient.
Reason for the Policy
To comply with Internal Revenue Service (IRS) income reporting requirements.
Applicability of the Policy
The policy is applicable to participants receiving payments to participate in outreach programs and other supported activities.
Procedure
Payments designated as Participant Support Costs are reported to the IRS and the recipient on Form 1099-MISC, Miscellaneous Income, by University Payables (UPAY), or on Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding by University Payroll and Benefits (UPB). A Social Security Number (SSN) is required for IRS Form 1099-MISC reporting. Therefore, payments by units must follow applicable requirements for processing these payments.
Guidance for processing these payments and additional instructions are described in Participant Support Costs webpage.
Participant Support Costs
The National Science Foundation (NSF), the U.S. Department of Energy, the U.S. Department of Education, other federal agencies, and non-governmental organizations provide funding to support participation in Outreach programs in underserved areas and populations, promote STEM activities, bring together experts, students and faculty, and promote participation in workshops, conferences, meetings, training, symposia, etc.
Multiple University of Illinois System departments receive funding from these agencies and organizations. When departments pay participants in these supported activities, the payments are designated Participant Support Costs.
Payments designated as Participant Support Costs are reported to the IRS and the recipient on Form 1099-MISC, Miscellaneous Income, by University Payables (UPAY), or on Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding by University Payroll and Benefits (UPB). A Social Security Number (SSN) is required for IRS Form 1099-MISC reporting. Therefore, payment of Participant Support Costs will be suspended if no valid SSN record exists in Banner.
U.S. Citizens, Permanent Residents, and Resident Aliens for tax purposes (Resident Aliens):
Participation Support Costs must be processed via TEM using the Participant Cost account code and comprehensive description with supporting documentation. When paying participant travel, use Participant Cost Other account code or non-employee travel, as directed by the grant. When paying participants who are not University of Illinois employees or students, a permanent vendor setup is required before payment can be issued. See Vendor Setup and Update.
Nonresident Aliens – Please refer to Foreign National Payments Resource Page for processing information, job aids and training materials.
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You may also submit a comment without posting to the feedback board by contacting obfspolicies@uillinois.edu.
