1099 Policies

1099 POLICIES

All payments and associated costs related to the following budget object codes are scrutinized for allowability within the grant parameters. 1099 designation may be determined as necessary in any of these specific cases:

(6518) Consultants

(6581) Professional Services

(6519) Honoraria

(6591) Subcontractors

Non-staff travel: All non-ACC employees who are being reimbursed from a grant for travel expenses are subject to receiving a 1099, and will be flagged as such.

Grant Participant Support: Payments made to individuals are scrutinized on a case by case basis. If the purpose of the payment meets the IRS definition of a scholarship per Publication 515 (tuition, books, fees, supplies, or equipment), the individual payment is not flagged for a 1099. If, however, the individual payment does not meet the IRS criteria to be considered a scholarship, it is flagged for 1099 eligibility.

§200.75 Participant support costs.

Grant Incentives: (6578) Payments made to individuals are scrutinized on a case by case basis.

Current Year Scholarships: (6598) All payments charged to 6598 should be processed through Financial Aid, so that they can be collected at the end of the year for 1098’s. Payments made to individuals are scrutinized on a case by case basis. If the purpose of the payment meets the IRS definition of a scholarship per Publication 515 (tuition, books, fees, supplies, or equipment), the individual payment is not flagged for a 1099. If, however, the individual payment does not meet the IRS criteria to be considered a scholarship, it is flagged for 1099 eligibility.

§200.466 Scholarships and student aid costs, for treatment of tuition remission provided to students.

Sponsorships: (6523) Payments made are scrutinized on a case by case basis.