Office of State Uniform Payroll Memorandum #98-02

July 10, 1997

To: All UPS Agencies
From: Ronald S. Mitchell, Director
Subject: Per Diem Payments to Board Members

OSUP recently attended an Outreach Workshop conducted by the State Treasurer's Office, the Social Security Administration, and the Internal Revenue Service. At the workshop an IRS representative indicated that persons who receive per diem pay, such as board members, are considered employees and must have a W-2 produced to report this income. These wages should not be reported on a Form 1099. Please refer to Office of Statewide Reporting and Accounting Policy's memorandum #SA 97-57 for a detailed explanation of per diem payments to board members.

The following are special UPS procedures for setting up and entering time for employees who are paid on a per diem basis: