8.6.9 Participant Support Costs

Policy Statement

Payments may be made to participants (including students) for public service, outreach, recruitment, and other activities supported by the University of Illinois System. These payments 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, or on Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding by University Payroll and Benefits. A Social Security Number (SSN) is required for IRS Form 1099-MISC reporting. Therefore, unit payment must follow applicable requirements for processing these payments.

Guidance for processing these payments, and additional instructions are provided on the Participant Support Costs webpage.

University of Illinois System Students: Guidance for processing these payments to University of Illinois System students, and additional instructions are provided on the Payments to Students webpage.