Subject:

Template for 1099 reporting SFS payments using a Single Payment Vendor ID and for non-SFS payments

Guidance:

Consistent with theGuide to Financial Operations (GFO),Chapter XII, Section 5.K.2 - Processing Payments Subject to Federal Reporting, OSC's Bureau of State Expenditures (BSE) will produce and send 1099 Forms to vendors using regular vendor IDs and to the Internal Revenue Service (IRS) for reportable payments processed within the Statewide Financial System (SFS).

In certain circumstances, BSE will also produce and send 1099 Forms to vendors and the IRS for reportable payments to vendors: (i) that use a single payment vendor ID; (ii) require certain information to be reported to the IRS that is not captured by the SFS; or (iii) are processed outside of the SFS. For BSE to produce and send 1099 Forms to these vendors, agencies must provide the required tax reporting data to BSE’s Federal Reporting Unit using this template*.

Prior to doing so, agencies should contact [email protected] to establish a plan for transmitting this information to BSE in a secure manner. Agencies should transmit this information to BSE’s Federal Reporting Unit using the method established by the third business day in January. Agencies that elect not to use OSC to produce 1099 Forms must report payment information directly to the vendor and the IRS under the agency’s employer identification number (EIN).

To ensure accurate and comprehensive federal reporting, and prior to providing data to OSC or producing 1099 Forms internally, agencies should refer to the instructions for the applicable 1099 Form on the IRS’s website or contact BSE’s Federal Reporting Unit at [email protected].

*Please note, the template was updated this year due to 1099 reporting changes. For more information on 1099 processing, please refer to Accounts Payable Advisory 71 - Processing Payments Subject to Federal Reporting.