L&S Payments to Individuals
Use the PIR for all payments to an Individual, Sole Proprietorship, Partnership, or Limited Liability Companies (LLC) as described in the 1099-MISC/1042S Tax Reportable Transactions document. If your department is reimbursing travel and/or expenses to an individual for who is not employed at UW-Madison, see Policy UW-3023-Payment for Services and Travel and Expense Reimbursement for Non-employees. All Payments to Individuals must be processed via ShopUW+.
UW-Madison adopts the IRS policy definition of a "royalty" as something paid to obtain intellectual property, or to use intellectual property or rights to such property. The IRS classifies the following expenditure terms similarly: Royalty, Patents, Licensing, Copyrights, Rights, Trade Names, Trademarks, Intellectual, Permissions.
Please use the following link on the UW Madison Accounting Service web site. Once the page is open scroll down to the Royalties (Definition, Payment Processing, and Tax Reporting)