The University of Minnesota is responsible for compliance with Minnesota State laws requiring withholding on specific types of compensation for services performed in Minnesota. Withholding is required on fees paid to contractors but does not apply to out of pocket expenses. Both fees and expenses are reported on a 1099 miscellaneous form. Payment is for reimbursement of actual out of pocket expense. Contact the Minnesota Department of Revenue for more information.
Payment is for reimbursement of actual out of pocket expense.
The University will not withhold tax if an IRS form W-4 is completed by the individual and is on file in Disbursement Services before or coincident with the first payment request. No refunds will be made if the W-4 is received after the payment is made. It is valid for one calendar year only. The payment documents must also include the Federal Tax ID or Social Security Number. The payment document must include the gross compensation amount.