The following are important tax reminders for all units and employees:
Year-End Tax Forms
If your unit receives year-end IRS tax forms from vendors, such as Forms 1099-MISC, 1099-NEC, 1099-INT, or 1099-R, please forward them to the Office of Treasury Operations only if the forms indicate federal and/or state withholding. Otherwise, the forms may be shredded. Other tax forms, including Forms 1099-K, Schedules K-1, and any other questionable tax documents, must be sent to Tax for further review.
System Tax Documents
Commonly requested tax documents, such as the system’s Form W-9, IRS exemption letter, and Illinois sales tax exemption certificate, are available to employees for distribution to non-system users when requested. Access to these documents is restricted to employees. Please do not post the documents on any websites available to the general public.
See Section 18 of the Business and Financial Policies and Procedures for additional tax information and documents.
Sales Tax Exemptions
The system is exempt from sales tax on its purchases in Illinois and several other states. Units need to utilize the system's exemptions where available and when accepted by vendors for all payment methods, such as PCards, TCards, petty cash, and employee reimbursements. The system reserves the right to deduct the amount of sales tax paid when reimbursing individuals for cash purchases.
The exemptions must be used solely for authorized system business purposes. Other organizations (including those accounted for within Banner custodial funds) are not authorized to utilize the system’s exemptions (e.g., any purchases from custodial funds). Personal purchases with the system's exemptions are prohibited and may result in disciplinary and other enforcement actions.
Please refer to Section 18.6 of the Business and Financial Policies and Procedures for additional information on sales tax reporting and exemptions in various states.
Offices or Employees Working in Other States or Countries
If your unit has offices or employees working in states other than Illinois or in other countries, the rules and process are outlined in System Human Resource Services Working Outside of Illinois Policy and Sections 1.5.1 and 18.16 of the Business and Financial Policies and Procedures. These policies and procedures apply to domestic and foreign individuals, as well as full- and part-time employees. These matters are facts and circumstances specific as each state and country has its own laws.
Employees working in states other than Illinois must complete the Certification of Working Outside the State of Illinois (an electronic form will be available in the near future) and the required Tax Withholding Allowance Certificates.
Employees Working in Illinois and residing in Reciprocal States
Employees working in the state of Illinois with residency in a reciprocal state, which includes Iowa, Kentucky, Michigan, and Wisconsin, must complete a Statement of Nonresidence in Illinois (IL-W-5-NR) and the required Tax Withholding Allowance Certificates.
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