Stockton University makes non-payroll payments to individuals and businesses in the course of the University’s trade or business. The payments are reported on the IRS 1099-MISC Form. Payments processed through the University’s Purchasing Card (Pcard) program are excluded.

The reportable threshold for all non-payroll payments (except royalty payments) is an aggregated amount of $2,000 or greater during a calendar year. Royalty payments have a threshold of $10 or greater during a calendar year.

All vendor payments processed through Accounts Payable require an entity type and must be a U.S. citizen or entity for tax purposes. Payments to Non-U.S. taxpayers may be reported on IRS Form 1042-S: Foreign Person’s U.S. Source Income Subject to Withholding.

The reportable entity types include: 

• Individuals
• Sole Proprietorships
• Single-member LLCs
• Partnerships
• Trusts
• Estates
• Corporations (medical and legal services only)

Government and tax-exempt organizations are excluded from reportable entity types.

For a full description please visit the IRS website and review Instructions for Form 1099-MISC. 

Stockton University makes nonemployee compensation payments to individuals and businesses in the course of the University’s trade or business. Federal and State tax regulations require that certain types of payments were reported to the Internal Revenue Service (IRS), state taxing authorities, and recipients (vendors) for payments made in each calendar year. The payments are reported to our vendors on the IRS 1099-NEC Form. 

The reportable threshold for all nonemployee compensation payments is an aggregated amount of $2,000 or greater during a calendar year. 

All vendor payments processed through Accounts Payable require an entity type and must be a U.S. citizen or entity for tax purposes. Payments to Non-U.S. taxpayers may be reported on IRS Form 1042-S: Foreign Person’s U.S. Source Income Subject to Withholding.

The reportable entity types include: 

• Individuals
• Sole Proprietorships
• Single-member LLCs
• Partnerships
• Corporations (attorney/law firm providing legal services to Rowan University)

Government and tax-exempt organizations are excluded from reportable entity types.

For a full description please visit the IRS website and review Instructions for Form 1099-NEC.  

Stockton University processes payments to third-party vendors and businesses in the course of its trade or business. Federal and state tax regulations require certain payment information to be reported to the Internal Revenue Service (IRS) and applicable state taxing authorities when reporting thresholds are met.

Payments processed through payment card transactions and third-party network transactions may be reported to the IRS on Form 1099-K, Payment Card and Third-Party Network Transactions.

The federal reporting threshold for Form 1099-K is generally more than $20,000 in gross payments and more than 200 transactions during a calendar year, although this threshold is subject to change under federal law.

Government entities and tax-exempt organizations are generally excluded from Form 1099-K reporting requirements. Corporate status alone does not determine reporting; reporting is based on transaction type and applicable IRS requirements.

For a full description please visit the IRS website and review Instructions for Form 1099-K.

Stockton University makes certain payments to nonresident aliens and other foreign individuals and entities in connection with the University's educational, research, and business activities. Federal tax regulations require U.S. withholding agents to report certain U.S.-source payments made to foreign persons and, when applicable, withhold federal income tax on those payments. These reporting requirements are satisfied through IRS Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, and IRS Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding.

Payments that may be reported on Form 1042-S include:

• Scholarships and fellowships
• Honoraria and guest speaker payments
• Independent personal services
• Research participant payments
• Royalties and other fixed or determinable annual or periodic (FDAP) income
• Compensation exempt under an applicable income tax treaty
• Other U.S.-source income paid to foreign persons

The University is required to collect appropriate tax documentation, including Forms W-8, Form 8233, and applicable immigration documents, to determine withholding and reporting obligations. Depending on the type of payment, immigration status, country of residence, and treaty eligibility, payments may be subject to withholding at rates prescribed by the Internal Revenue Code or reduced under an applicable income tax treaty.

Recipients who receive reportable income will generally be issued Form 1042-S by March 15 following the calendar year in which the payment was made. For additional information, please visit the IRS website and review the instructions for Forms 1042 and 1042-S.

As a public institution of higher education and an instrumentality of the State of New Jersey, Stockton University is generally exempt from federal income tax. However, certain activities conducted by the University may generate Unrelated Business Taxable Income (UBTI) that is subject to federal income tax reporting and payment requirements.

The Tax Department is responsible for identifying, analyzing, and reporting activities that may constitute unrelated business income and for preparing and filing IRS Form 990-T, Exempt Organization Business Income Tax Return. Examples of activities that may require review include:

• Advertising income
• Certain facility rentals
• Sponsorship arrangements
• Sales of goods or services not substantially related to the University's educational mission
• Other commercial activities subject to unrelated business income tax rules

The Tax Department works closely with University departments to evaluate revenue-generating activities, determine applicable exclusions or exceptions, calculate taxable income, and ensure compliance with federal tax regulations. For additional information, please visit the IRS website and review the instructions for Form 990-T.

The Stockton University Foundation is a separate nonprofit organization that supports Stockton University's educational mission through fundraising, stewardship of charitable gifts, and management of donor funds. As a tax-exempt organization recognized under Section 501(c)(3) of the Internal Revenue Code, the Foundation is required to file an annual information return with the Internal Revenue Service.

The Tax Department assists with the preparation and filing of  IRS Form 990, Return of Organization Exempt From Income Tax, which provides the public and regulatory agencies with information regarding the Foundation's:

• Mission and activities
• Governance and organizational structure
• Financial position and operating results
• Contributions and fundraising activities
• Grants and scholarships awarded
• Compensation and related-party disclosures
• Compliance with federal tax-exempt organization requirements

Form 990 serves as an important transparency and accountability document for donors, regulators, and the public. The return is filed annually and is available for public inspection as required by federal law. For additional information, please visit the IRS website and review the instructions for Form 990.