Personal Payments Information

From time to time, individuals who are to receive money from the University for services, honorariums, human subject payments, etc. ask to have those payments made to a charitable organization instead of to themselves.

Per IRS guidelines, the individual has "constructively received" the income, because control over the income is able to be exercised by the individual. Therefore, the payment is still taxable to the individual as income because they controlled the disbursement of the funds, even if the payment were to go directly to a charitable organization.

It would be a significant administrative burden for Purdue to issue payments to charitable organizations while maintaining and providing tax records for the individuals who directed their payments be made to a charity instead of to themselves. As a result, Purdue will not re-direct payments from the individuals entitled to the payments to a charitable organization.

Statement of Work (SOW)

All payments are processed via ZV60

Payee Type	Tax Status	Required Documentation	Notes
Employee	n/a	Employee's cannot be consultants. Payments should be made through payroll.
Non-Employee	US Citizen, Perm. Resident	Payee Certification Form Indicate in Part 2 of the PC Form if the SOW has been executed	Create Statement of Work
	International	Payee Certification Form Offer Letter
	International	Payee Certification Form Glacier Packet + documents (listed on Tax Summary Report)

Honorarium / Participant Support / Services

Payee Type	Tax Status	Required Documentation	Notes
Employee	n/a	If allowed: Payee Certification Form If international: Glacier Packet + documents (listed on Tax Summary Report)	Approval by Payroll and Tax Services - Tax Dept. required. Cannot be related to employee's general employee function / job duties.
Individual This includes businesses with tax classification of individual, sole proprietor, or single member LLC	US Citizen, Perm. Resident	Payee Certification Form	Do not attach a Substitute W-9
	International	Payee Certification Form Glacier Packet + documents (listed on Tax Summary Report)	Do not attach a Substitute W-9

Human Subject

Payee Type	Tax Status	Required Documentation	Notes
Employee	n/a	Payee Certification Form or Human Subjects Invoice Log	Do not attach a Substitute W-9
Non-Employee	US Citizen, Permanent Resident	Payee Certification Form or Human Subjects Invoice Log
Non-Employee	International	Payee Certification Form or Human Subjects Invoice Log Glacier Packet + documents (listed on Tax Summary Report)

Moving Allowance

Payee Type	Tax Status	Required Documentation	Notes
Employee	n/a	Moving reimbursements to active employees must be paid through payroll	Contact appointment specialist.
Future Employee (Offer has been accepted)	US Citizen, Perm. Res., Res. Alien	Payee Certification Form ZV60 process - more than 30 days prior to start date Paid through payroll - less than 30 days prior to start date Offer letter Moving allowance template	The last 4 digits required on Payee Certification Form
Future Employee (Offer has been accepted)	International	Payee Certification Form Moving allowance template Offer letter No Glacier packet + documents are needed for the Moving Allowance paid in the same year as the employment start date.	Last four digits required on Payee Certification Form. If person does not have an SSN, Tax Department will issue a 999 number.

Reimbursement: Travel, Supplies, etc.

Payee Type	Tax Status	Required Documentation	Notes
Employee	n/a	Receipts (original if possible) Statement of Purdue business purpose	If business travel, process through Concur. Graduate and student employee travel is processed via ZV60 Sales tax is reimbursable with department approval
Non-Employee	US Citizen, Perm. Resident	Receipts (original if possible) Payee Certification Form Statement of Purdue business purpose	WT and B2 visa holders are limited to 9 days reimbursement (after which, 9-5-6 statement must be signed). Do not attach a Substitute W-9
Non-Employee	International	Payee Certification Form Glacier Packet + documents (if not prospective employee) Receipts (original if possible) Statement of Purdue business purpose

Prospective Employee Reimbursements

Payee Type	Tax Status	Required Documentation	Notes
Non-Employee	US Citizen, Permanent Resident, International	Form 17C Receipts (original if possible)	If business travel, process through Concur. Graduate and student employee travel is processed via ZV60 Sales tax is reimbursable with department approval

Living allowance

Payee Type	Tax Status	Required Documentation	Notes
Non-paid Employee	n/a	Payee Certification Form Offer Letter If international: Glacier Packet + documents (listed on Tax Summary Report)	Documentation may be sent each month for which the employee is being paid a living allowance. Do not attach a Substitute W-9
Student	US Citizen, Perm. Resident	Payee Certification Form Offer Letter
Student	International	Payee Certification Form Offer Letter Glacier Packet + documents (listed on Tax Summary Report)

Prizes / Awards

Payee Type	Tax Status	Required Documentation	Notes
Employee	n/a	For non-job related: Payee Certification Form International Glacier Packet + documents (listed on Tax Summary Report)	If award is job-related, should be processed through Payroll payment (i.e. Bravo Award, incentive pay, etc.) Do not attach a Substitute W-9 STUDENTS If enrolled: process via DFA database. If not currently enrolled, process as a Non-Employee. If international, send glacier to Tax Department.
Non-Employee	US Citizen Permanent Resident Resident Alien	Payee Certification Form
Non-Employee	International	Payee Certification Form Glacier Packet + documents (listed on Tax Summary Report)

Fellowships

Payee Type	Tax Status	Required Documentation
Employee	n/a	Employees may not be fellows
Non-Employee	US Citizen Permanent Resident Resident Alien	n/a
Non-Employee	International	Glacier Packet + documents (listed on Tax Summary Report)

Scholarships

Payee Type	Tax Status	Required Documentation	Notes
Scholarships	Currently enrolled	Processed through Division of Financial Aid database	If international, complete Glacier, but do not send to Tax Dept. Do not attach a Substitute W-9
Scholarships	Not currently enrolled	Payee Certification Form If international: Glacier Packet + documents (listed on Tax Summary Report)

Cash Advance

Payee Type	Tax Status	Required Documentation	Notes
Employee	n/a	Cash advance requests must include an IRB number Project Advance Form, if applicable.	Project Advance Process ZV60 process to include the documentation of the event/reason for the request and the IRB number. Cash Advance Reconciliation sheet must be returned to Tax Department after funds are disbursed

Wire Transfers

Payee Type	Tax Status	Required Documentation
Individual (including businesses with tax classifications of individual, sole proprietor)	US Citizen, Perm. Resident	Payee Certification Form Wire Transfer Request Form Backup documentation Substitute W-9 should not be attached
	International	Payee Certification Form Wire Transfer Request Form Backup documentation - If work performed in US: Glacier packet + documents (listed on Tax Summary Report)
Corporation	Domestic	Wire Transfer Request Form Invoice W-9
Corporation	International	Wire Transfer Request Form Invoice If work is performed in the US: W-BEN-E (only services performed outside the US) Substitute W-9 should not be attached