1099 Tax Forms
IRS form 1099NEC and 1099MISC reporting
UNC issues forms 1099NEC for services provided by non-employees, typically independent contractors. 1099MISC will be issued to students for awards and other taxable income that were paid through Accounts Payable until July 31, 2021. Most awards to students will be entered in GradStar and paid via student accounts after July 31, 2021, and those amounts will be reported on form 1098T instead of form 1099MISC. Taxable payments to employees and students who receive regular payroll checks are reported on form W2 instead of form 1099MISC. Form 1099MISC is also issued to employees and vendors for royalties.
Non-NC residents who perform specific services within North Carolina must have withheld 4% on services provided for the year in excess of $1,500. This North Carolina state tax is reflected on the 1099NEC or 1099MISC.
Policies and Procedures
- 707 – Policy on NC Income Tax Withholding Requirement for Non-Wage Compensation to Nonresidents
- 707.1 – Payments for Personal Services of a Non-North Carolina Resident
Frequently Asked Questions
- What is the 1099NEC or 1099MISC?
- IRS tax forms used to report a year-end summary of non-employee compensation by UNC-Chapel Hill.
- Who receives the 1099NEC or 1099MISC?
- Any individual who gets paid $600 in non-employee compensation by UNC-Chapel Hill during a calendar year. Also, certain other types of payments may require the issuance of the 1099NEC or 1099MISC, such as rents, royalties and payments to attorneys.
- When will I receive this form?
- The University is required to mail these forms by the last day in January following the tax year being reported.
- Why not combine all income on a single tax form?
- UNC-CH reports all employee compensation on the W2, but by IRS guidance the 1099NEC or 1099MISC reflects non-employee compensation of various types.
- What happens if I relocate during the year?
- All employees and students should correct their address in ConnectCarolina self-service under “personal information” by January 1. Independent Contractors can contact the department that they are working with to notify them of an address change.
- How do I obtain a copy of my 1099NEC or 1099MISC?
- For a current year copy, please email email@example.com or firstname.lastname@example.org to make a request.
- My W2 shows withholding but my roommate’s 1099 has none…why?
- All employees have various amounts withheld by UNC Payroll on the W2. Form 1099NEC or 1099MISC reflects non-employee income and UNC-Chapel Hill is not required to withhold on this income.
- My department overpaid me and I repaid this, but it’s still on my 1099NEC or 1099MISC…why?
- Your department must promptly notify Accounts Payable whenever such changes occur, to ensure all accounting records are updated and corrected. This will also correct tax reporting issues.
- If my 1099NEC or 1099MISC is incorrect how can I correct this?
- Contact Accounts Payable at email@example.com so that the matter may be researched and corrected. A new 1099NEC or 1099MISC will be issued to you and the IRS, if appropriate.
- A foundation pays me so who issues my 1099NEC or 1099MISC?
- The UNC Foundations (there are many) are separate legal entities from UNC-Chapel Hill, so each is responsible for any tax forms needed. This is true even though UNC-CH processed the actual payment.
- I am a UNC student. Where can I find guidance about taxes and education?
- Consult IRS Publication 970 at IRS.gov. For further information, it is suggested to utilize a tax advisor of your choice.
- I am a UNC employee but received both a W2 and 1099NEC or 1099MISC…why?
- UNC seeks to reduce unneeded paperwork whenever and wherever possible. However, IRS guidance separating most employee and non-employee compensation reporting forms sometimes results in more than one form for one individual.
- I am a UNC employee but payments labeled as ‘gifts’ (actually awards and my stipend issued by Accounts Payable) are shown in Box 14 of my UNC payroll issued W2…why?
- UNC seeks to limit excess forms if possible. In this case, the payments paid by other offices are shown on the same W2, and UNC Payroll carefully explains the placement and title in the tax information section of its website. For details on what the Box 14 amounts represent, please contact Accounts Payable directly as these payments originate there.
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