L&S 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 318-Payment for Services and Travel and Expense Reimbursement for Non-employees.

PIR Form
(Link Updated to New Form Location on Accounting Services Website)

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