CLASSIFICATION STRUCTURE

 

1099 INDICATOR

  1. General

    The Internal Revenue Service and South Carolina Department of Revenue regulations require that any payers engaged in trade or business (including state government agencies and nonprofit activities) file an information return (Form 1099-Misc) on annual payments totaling $600 or more. Examples of payments subject to 1099-Misc reporting are:
  1. Rents - Payments for all types of rents, including real estate rentals for office space or housing and equipment rentals.

  2. Medical services - Payments to physicians, physicians' corporations, or other suppliers of health and medical services.

  3. Non-employee compensation - Payments for services performed by individuals not treated as employees.

  4. Per diem paid to board and committee members.

  5. Gross proceeds paid to attorneys - Payments made to an attorney and client for legal settlements when attorney fees are not specifically identified.
  1. Coding:

    The Comptroller General's Office is the payer responsible for filing Forms 1099-Misc. Compliance with tax reporting guidelines requires that all reportable payments are captured and accumulated by type (i.e., rents, medical, etc.). 1099 reportable information is systematically captured from the STARS history file based on the object code/vendor type combination.

    The following data is required and edited on input documents to insure the integrity of the 1099 file created:
  1. The complete name and address of the payee.

  2. The payee's TIN (social security number or FEIN).
Classification Structure Index Revenue Object Codes-Detail Revenue Object Codes and Titles By Major Object