Payments to Individuals

The Payment to Individuals Report (PIR) form is the required mechanism for making payment to non-employees or individuals that are defined as "a person who is not a company, partnership, corporation, association, organization, trust or estate, and for whom an employer-employee relationship does not exist."

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 203-Payment for Services and Travel and Expense Reimbursement for Non-employees.

PIR form Instructions

PIR Form

Royalty Processing

UW-Madison adopts the IRS policy definition of a "royalty" as something paid toobtain 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)

Policy and Procedure: 601-Tax Compliance, Reporting, and Withholding on Non-Salary Payments

Payment Request (electronic PIR form created by UW-Engineering)

Use the selection “One Individual – U.S.” or “One Individual non-U.S.” in the payment request tool. 

Keywords:PIR, Services, Payments to Individuals, royalty, patent, licensing, copyrights, rights, trade names, trademark, intellectual, permissions   Doc ID:20160
Owner:Debra M.Group:College of Letters & Science
Created:2011-09-08 09:49 CDTUpdated:2016-08-29 08:59 CDT
Sites:College of Letters & Science
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