Procedure: 101-Payments to Individuals

Appendix 1-Payment Request Procedures

When to Use the Payment to Individual Report:

Use the Payment to Individual Report (PIR) to request all payments to individuals except salaries, employe reimbursements, and payments to subcontractors and architects. An individual is defined as "a person who is not a company, partnership, corporation, association, organization, trust or estate, and for which an employer-employee relationship does not exist."

See UW System Financial Policy and Procedure Paper #36 for further instructions.
Contact the institution Student Loan Manager for instructions regarding the processing of student loans.

Contact the institution Student Loan Manager for instructions regarding the processing of student loans.

Instructions for Completion

  • AMOUNT

Enter the total amount to be paid to the individual before any applicable tax withholding.

  • CODING

Enter the specific coding information to which the payment is to be charged. This includes Account, Fund, DeptID, Program, Class (Bldg #), Budget Year, and Project.

  • SS # OR TAXPAYER ID #

Enter the individual's social security number or individual taxpayer identification number (ITIN), if any. This is the tax identification number under which any reportable payments will be reported to tax authorities. Accuracy is extremely important. Taxes must be withheld from reportable payments if a social security number or ITIN is not provided.

An individual who is a nonresident alien and does not have a social security number or ITIN, should apply for a social security number, if eligible, or for an ITIN, if not eligible for a social security number. After application has been made, enter "applied for" in this space, and see Accounting Services Policy and Procedure Manual on Tax Reporting and Withholding on Non-Salary Payments.

  • PO# Leave blank
  • SCHOLARSHIP/FELLOWSHIP SECTION

If the payment is for a scholarship or fellowship to a UW student, separately enter the portions of this payment which apply to Semester 1, Semester 2, and Summer Session.

Enter the award date (date the student was notified of the award.)

  • ENTERTAINER/PUBLIC SPEAKER SECTION

Complete this section if the payee is an entertainer or public speaker. Payment may be subject to withholding if the entertainer or public speaker is not a Wisconsin resident. Attach Form WT-11 or exemption waiver if provided by entertainer or public speaker.

See Accounting Services Policy and Procedure Manual on Tax Reporting and Withholding on Non-Salary Payments for complete instructions regarding the Wisconsin Entertainer Tax.

  • NAME

Enter the payee's legal name (last, first, initial).

  • MAIL CHECK TO

Enter the address to which the check should be mailed. If the check is to be picked up, enter "please call (name) at (x-xxxx) when check is ready."

  • PERMANENT HOME ADDRESS

Enter the individual's permanent mailing address if different from the "Mail Check To" address. This is the address to which a tax form will be mailed at the end of the calendar year.

  • UW / STATE EMPLOYEE

If the individual is a UW or State employee, indicate the employing department. In most cases, UW employees must be paid through the payroll system and should not be paid on a PIR. One exception would be payments to human subjects.

  • RESIDENCY

If the payee is a legal United States resident, enter an "X" in the box before "U.S. Resident." If the payee is not a U.S. resident, enter the individual's country of residence on the line after "Legal Resident Of." NOTE: It is very important that the country of RESIDENCE be entered, which is not necessarily the country of CITIZENSHIP.

Payments to nonresidents of the U.S. require various forms of visa documentation. There are tax considerations as well. For further information and instructions, refer to Accounting Services Policy and Procedure Manual on Tax Reporting and Withholding on Non-Salary Payments and UW-Madison instructions for Payments to Foreign Nationals.

  • DATE(S) OF SERVICE / PURPOSE OF PAYMENT

Enter the exact dates during which service was/will be provided and a complete description of the reason for payment. Complete descriptions, including dates, are necessary for accurate withholding and reporting. For class code 2150, itemize expenses and attach original receipts, if required.

  • FOR MORE INFO CALL

Indicate the name and phone number of a person to contact if there are questions regarding the payment request.

  • PAYMENT AUTHORIZED BY

All payment forms must be signed by the department chairperson or principal investigator and the dean/director (or designee.) If the payment is for a scholarship/fellowship on activity 9, the form will be forwarded by the Dean's office to the Office of Student Financial Aids.

Making Payments to More than One Individual on the Same PIR

  • Complete one form for each group of persons for which:
    • Items 2, 6, 8, 11, 12, 13, and 14 are the same (eg. All royalty payments to U.S. residents,) and
    • Attach an original list and two copies showing the other information (items 1, 3, 5, 7, 9, and 10) for each person.
  • If one form is used for payments to more than one individual, it is very important to provide clear and complete information regarding each individual. This will help to ensure each person's tax withholding and reporting is handled correctly.
  • Another alternative would be to complete one form for each person.

Use of requisition vs. PIR when processing service payments

Procedure: 101-Payments to Individuals


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