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Payment to Individual Report - General Guidelines
The Payment to Individual Report (PIR) is used to request all payments to individuals except salaries, employee reimbursements, and payment 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 whom an employer-employee relationship does not exist." See Personal Services Payment for more details. Examples of valid payments processed with a PIR are direct-charge payments to individuals for services, honoraria, prizes and awards, scholarships, rents, royalties, and participant support. You may use the PIR to pay a non-UW employee. You may use the PIR to pay a fee that is less than $50 to a registered UW student. Fees for services greater than $50 that are paid to students and any payments to a UW employee must be paid through payroll.
Take the following steps to complete the PIR form:
- Indicate residency, dates of service and purpose of payment.
- Complete the area "Entertainer or Public Speaker". If indicating "yes," attach a completed, signed entertainment contract. Only UW Purchasing can sign contracts for the University unless the Department has been delegated by Purchasing to sign contracts.
- Depending upon the type of service and if the payment is $1,500 or more, attach a sole source justification. Detailed instructions on the sole source justification is available from Purchasing Services. Refer to Internal Procedure Paper #31 and Purchasing Policy and Procedure Paper #19.
- If the payment is $5,000 or more for any 12 month period, no matter what service is being performed, a signed Academic Support Services Agreement must be attached to the PIR. Please note that the agreement should be signed by Purchasing Services prior to services being performed or offered. After the order is approved, a check will be issued.
Class Codes
- Code payments for services to class code 3011.
- If the coding for payment is using Activity 9, the Dean/Director's Office must send the PIR to the Student Financial Aids Office for approval. Activity 9 can only be used with class codes 5711 and 5713.
- The class codes marked with an asterisk (*) require an individual's social security number and home mailing address.
- Class code 3241(Reportable) Please read How To Pay Human Subjects before submitting a payment to individual report
Listed below are the class codes that are most commonly used on the PIR. Please refer to the current Class Code Manual for specific definitions or an entire list of class codes and definitions
Class Code |
Title |
2152 |
Travel - Non-employees who adequately account for expenses |
3011* |
Services - Professional, educational, or vocational - individual, sole proprietorship or partnership (Reportable). |
3016* |
Services - Provided by consultants - individual, sole proprietorship or partnership (Reportable). |
3153* |
Prizes and Awards - Cash to individuals (Reportable). |
3240* |
Royalties - Individuals, sole proprietorship or partnership (Reportable). |
3241** |
Human Subjects (Reportable). |
5709* |
Support - Students, fellows, scholars and trainees (Reportable when payment is to a non-resident alien). |
5710* |
Support - Non-employees and non-registered UW students (Reportable when payment is to a non-resident alien). |
5711* |
Student aid/scholarship awards - excluding loans (Reportable when payment is to a non-resident alien). |
5713 |
Tuition and fees. |
PIRs are printed on carbonless paper with four copies. Supplies are available in the Dean's office or can be purchased through printing services.
PIR copies are retained as follows:
- Copy 3 is retained by the Department Chairperson/Principal Investigator.
Copy 2 is retained by the Dean/Director.
Copy 1 and Original are sent to Accounting Services, with 2 copies of all attachments.
Copy 1 will be used by the Accounting Services Tax Department. Original will be attached to the voucher.
Instructions for completing the payment to Individual Report Form.
The following chart provides a quick reference as to which payment method for processing fees* a PIR or requisition should be used.
| Type of Transaction |
Amount Paid to An Individual |
Method of Payment |
Contract Type |
| |
|
Fee |
Travel(2150) |
|
| Entertainer |
$1-5,000 |
PIR |
PIR, Direct Charge, Requisition |
Entertainer contract (optional) |
| Entertainer |
$5,001+ (fee only) |
Requisition |
PIR |
Entertainment contract and/or standard rider** |
| Instructor |
$1-5,000 (fee only) |
PIR |
PIR, Direct Charge, Requisition |
None |
| Instructor |
$5,001+ (fee only) |
Requisition |
PIR |
Academic Support Service Agreement and Sole Source Justification |
| Speaker |
$1-5,000 (fee only) |
PIR |
PIR, Direct Charge, Requisition |
None |
| Speaker |
$5,001+ (fee only) |
Requisition |
PIR |
Speaker Contract and/or standard Rider** |
| Consultants |
$1-5,000 (fee only) |
PIR |
PIR, Direct Charge, Requisition |
None |
| Consultants |
$5,001+ (fee only) |
Requisition |
PIR |
Academic Support Service Agreement and Sole Source Justification |
*Payment to Individual Report forms are to be used for payments to individuals only.
** Payment to non-US residents are always processed on PIRs. Approved, applicable contracts must be attached to the PIR. (Refer to FPPP #31 regarding tax reporting and the UW-Madison Handbook of Payments to Foreign National-Immigrations and Tax Considerations for Visa requirements and documentation. For additional information call the II or OISP business office(s) 2-8577 or 2-5804.
*** If the individual requires use of their personal contract, a University Standard Rider must be attached to it.
When a speaker/entertainer is required, an appropriately signed contract, by all parties, must be attached to all documents requesting payment. Only Purchasing Services is authorized to sign contracts on behalf of the university, unless delegated authority has been granted. Purchasing Services does not generate a written ASSA for non-US providers.
Requisitions are to be processed PRIOR to the service/event PIRs are to be processed AFTER the service/event is complete
TRAVEL EXPENSE REPORTS
The Accounting services web site has instructions and tips on how to fill a Travel Expense Report Form. You can also download a Travel Expense Report Form from this website. Access PIR and TER files.
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