Form 1099 Misc

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					Vendor Code/1099 Section



     Robert E. Byrd, CGFM
    County Auditor-Controller



    County of Riverside ■ Office of the Auditor-Controller
                                       Agenda

•   What is 1099 –Misc Reporting
•   Type of Payments
•   Payments Not Required Reporting
•   Reporting Timeline
•   Accuracy of Vendor Information
•   What is the County Departments Role


County of Riverside ■ Office of the Auditor-Controller
             What is 1099-MISC and
              What does it Mean?
• A 1099-Misc is a type of tax form. It is used
  to report miscellaneous income for vendors
  who have been paid a total of $600 or more in
  non-employee payments during a calendar
  year.


County of Riverside ■ Office of the Auditor-Controller
       What Type of Payments are
        Reported on 1099-Misc?
•   Legal Services
•   Rents
•   Prizes/Awards
•   Medical/Dental Services
•   Guest Speakers/Lectures
•   Performers
•   Child Care Providers
•   Other Services
County of Riverside ■ Office of the Auditor-Controller
      Payments Not Required to Report
               on 1099-Misc

• Payments to Corporations (Except payments
  made for legal/medical services)
• Payments for merchandise, telegraphs,
  telephone, freight, storage
• Wages paid to employees (reported on W-2,
    Wage and Tax Statement)



County of Riverside ■ Office of the Auditor-Controller
     Payments Not Required to Report
              on 1099-Misc

• Business travel allowances /mileage paid to
  vendors
• Payments to non profit organizations and
  government agencies



County of Riverside ■ Office of the Auditor-Controller
    1099-Misc Reporting Timeline

• IRS regulation mandates that the Form 1099-
  Misc is distributed no later than January 31 of
  the year following payment.

• Electronic file is due to the IRS by March 31.



County of Riverside ■ Office of the Auditor-Controller
     Why is Accurate Reporting of
     Vendor Information Critical?
The County of Riverside annually files to the
IRS the reportable amounts paid to each vendor
during the calendar year.
• The legal name and Tax Identification Number
  (TIN) in PeopleSoft MUST match exactly
  with the legal name and TIN on file with the
  IRS.

County of Riverside ■ Office of the Auditor-Controller
     Why is Accurate Reporting of
     Vendor Information Critical?
Yearly, the County has paid between $12,000
to $14,000 in penalties to IRS.
   • For 2007, the penalty amount was $10,450
     for 209 vendors with incorrect information.
   • Penalty notifications were sent to these
     vendors. 84 vendors responded and have
     been corrected. This reduced the penalty by
     $4,200.

County of Riverside ■ Office of the Auditor-Controller
     Why is Accurate Reporting of
     Vendor Information Critical?
• The ACO is sending a second notification to
  125 vendors from the 2007 penalty reporting
  period.
• These vendors did not respond to the first
  request. If the vendor fails to respond to the
  second request, then the ACO, on behalf of the
  County, will apply a penalty at the required
  28% rate.
County of Riverside ■ Office of the Auditor-Controller
               What is the Role of the
               County Departments?
• Verify that the vendor information is accurate
  on the W-9 and matches the IRS 147-C letter
  OR matches a copy of the Social Security
  Card.
   • NOTE: Social Security Number (SSN) or
     Employer Identification Number (EIN)
     MUST always have a 9 digit number

County of Riverside ■ Office of the Auditor-Controller
               What is the Role of the
               County Departments?
     • If a SSN is used, then the Individual/Sole
       Proprietor box should be Checked on the
       W-9 form or AP-1 (substitute W-9 form),
       AND the legal name should be written in
       the “Name” field and NOT in the “Business
       name” field.



County of Riverside ■ Office of the Auditor-Controller
                    What is the County
                    Departments Role?
• Please submit all required vendor code
  documentation (for more specific detail, refer
  to the MAM presentation of 11/20/08.)




County of Riverside ■ Office of the Auditor-Controller
               Vendor Code & 1099’s
• Vendor Code Section contact list:

• Denene Guerrero Guzman                                 955-3837
• Felix Offor                                            955-0334
• Jason King                                             955-5179




County of Riverside ■ Office of the Auditor-Controller
                       Questions
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County of Riverside ■ Office of the Auditor-Controller
                                     The End




County of Riverside ■ Office of the Auditor-Controller

				
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