NMU's Compliance Database - Northern Michigan University

Annual reporting is required for payments:  Of $400 or more made for non-payroll purposes; Of $10 or more made for royalties; and Made to attorneys not performing services under a contract with the university. Reporting is done on Form 1099-MISC. Deadline to payment recipients is January 31st. Deadline for reporting to the IRS is February 28th.

Those who make payments to attorneys aggregating $600 or more per calendar year in connection with legal services must file an information return for such payments. This requirement applies whether or not the services were performed for the payor, so for example, if the university was a defendant in a lawsuit, and was required to pay attorneys fees, this rule would apply. The filer must also provide to the attorney a written statement of the information required to be included on the return. Note that employers must report entire settlement amounts, including the amount paid to the attorneys, as income to the plaintiff, and also prepare a Form 1099 reporting the amount paid to the attorneys as income to the attorneys.