The W-2 form reports employee salaries and wages, as well as other required information. Typically, individuals must attach W-2s to the individual tax return when it is filed.
Foreign nationals may also receive W-2s for salaries and wages, with one exception. He or she may also receive form 1042-S. Form 1042-S reports salary and wages exempt from taxation under a tax treaty, the W-2 form will report the taxable salary and wages.
Form 1099-MISC reports the following non-employee payments to the IRS:
Fees for services
See the IRS Forms and Publications for more information. If you have questions regarding the 1099-MISC form you received, or if you did not receive one when you believe your should have, email us at email@example.com.
Starting with the calendar year 2018, Form 1098-T will report the payments made for tuition and related expenses versus the amounts billed for tuition and related expenses. The 1098-T also reports financial aid awarded to students enrolled in courses at Cornell during the calendar year for which they receive academic credit.
Form 1098-E reports the amount of interest paid on a student loan. Each student receiving a 1098-E form is responsible for determining whether he or she is eligible to deduct the interest in accordance with IRS regulations.
Form 1042-S reports wage payments for foreign nationals who are exempt from U.S. taxation under a tax treaty. This form is also used to report non-wage payments for foreign nationals who are also nonresident aliens. Foreign nationals qualified to receive the 1042-S must attach the form to their tax returns.
Wages subject to U.S. taxation are reported on a W-2 form, not the 1042-S form.
To avoid new employee frustration, it is important that all university staff and faculty members understand and consistently apply the rules surrounding the taxability of recruiting and moving expense reimbursements. This involves clear communication to recruits, both verbally and in our offer letters, of the IRS rules, so that we set appropriate expectations throughout the recruiting and hiring process. Please note that the university does not cover moving expenses for all new or transferring employees; paying for such items is entirely at each unit's and human resource's discretion.
Gift cards or certificates must not be purchased with a procurement card or charged to sponsored funds accounts unless the gift is for human participants.
Tax Reporting for Employees
All cash awards, cash-equivalent gift cards, or certificates must be reported as taxable income to employees (U.S. citizens, foreign nationals, and resident and nonresident aliens), including student employees. Use the Gift Card/Certificate Reporting Form below.