a Student Organization/Group Be Paid for Working On Campus?
for services is reportable either on a W-2 for employees, or on a
for independent contractors. This means the payee MUST have a taxpayer
number (TIN), whether the payee is an individual, a business or an
the case of a business or an organization, the TIN would be an employer ID
number (EIN). Since
student organizations/groups (including Registered Student Organizations) are a completely
separate entity from CMU, they are NOT covered under CMU’s tax-exempt status or taxpayer identification number (EIN). Therefore, student
organizations must apply to the IRS for their own EIN, if they want to work on
campus. Please note that, unless the student organization also files paperwork
with the IRS to be recognized as a tax-exempt organization, a 1099-MISC would
be issued to them if paid $600 or more (for services provided) during the tax
student organization does NOT have an EIN, we cannot process a payment to them
performed by individual members of the organization – even if payment is in recognition
of “volunteered” services. The individual members that worked (or volunteered their
services) would need to be hired and paid as student employees.
student organization should also have an EIN to receive payment for a prize or
award, as the
payment could be reportable on a 1099-MISC. However, an EIN is not required to
payment to reimburse expenses to a student organization as long as original
receipts are provided
with the request.
“Tax Information” fact sheet for student organizations. The information includes basic
instructions on how to apply
for an EIN (i.e., by phone, by fax or by mail) and a link to the IRS web site. If you have questions, please contact our office at 3523.