1099 Transactions

Whenever the university pays a third-party for rentals or services, Procurement Services must report the payment to the IRS as a 1099 transaction. If your department is paying an individual or supplier for services rendered, please be sure to provide the payee’s Tax ID or Social Security number. Common examples of 1099 items include: equipment rentals, repairs of office equipment, and stipends (for non-USD employees).

Sales Tax

Suppliers will usually include sales tax on their invoices. However, if a supplier does not charge sales tax and the item is considered taxable under state guidelines, Procurement Services is required by law to pay the State of California directly. Your department will be charged for the amount of the invoice plus sales tax.