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					Montana Operations Manual (MOM) Volum e II
Chapter 1600           Warrant Writer Unit policies and procedures                                            Effective 7/1/2009



2-1600           WARRANT WRITER UNIT POLICIES AND PROCEDURES.......................... 3

2-1610.00           Warrant Write r Unit ............................................................................................ 3

2-1615.00   Terms used (Warrant Writer Unit)..................................................................... 3
  2-1615.10   Warrants Already Written (WAW)..................................................................... 3
  2-1615.20   Vouchers for a Payment Screen .......................................................................... 3

2-1620.00   Express checks....................................................................................................... 5
  2-1620.10   How to request an express check ........................................................................ 5

2-1625.00   Warrant & Warrants Already Written cancellations ....................................... 6
  2-1625.10  Warrant & Warrants Already Written cancellation confirmation....................... 6
  2-1625.20  State Payroll warrant cancellation....................................................................... 8
  2-1625.30  Stop payments ..................................................................................................... 8

2-1630.00    Stale-dated warrant replacements (MCA 17-8-303).......................................... 8
  2-1630.10    Agency review of monthly stale-dated report..................................................... 8
    2-1630.11 Payee is entitled to the stale-dated funds ............................................................ 9
    2-1630.12 Payee is not entitled to the stale-dated funds ...................................................... 9
  2-1630.20    Stale-date confirmation ....................................................................................... 9
  2-1630.30    Stale-date warrants sent to Abandoned Property .............................................. 10

2-1635.00   Warrant (non-WAW) replacement (MCA 17-8-306) ...................................... 10
  2-1635.10  Warrant replacement request by agency or payee ............................................ 10
  2-1635.20  Replacement issued by the Warrant Writer Unit .............................................. 10
  2-1635.30  Warrant replacement confirmation ................................................................... 11
  2-1635.40  Original warrant received after replacement issued .......................................... 11

2-1640.00   Warrant Already Writen (WAW) replace ments (MCA 17-8-306) ................ 11
  2-1640.10  How to request WAW replacement .................................................................. 11
  2-1640.20  Warrants Already Written (WAW) replacement process ................................. 12
  2-1640.30  State Payroll warrants never received by payee................................................ 12
  2-1640.40  State Payroll decedent warrants ........................................................................ 12
  2-1640.50  Spoiled or destroyed warrants........................................................................... 12

2-1645.00           Copies of cashed warrants.................................................................................. 13

2-1650.00   Forgeries .............................................................................................................. 13
  2-1650.10   State recovery of funds ..................................................................................... 13
  2-1650.20   Claim refused by bank ...................................................................................... 14

2-1660.00    Vendor file require ments.................................................................................... 14
  2-1660.10    W-9/W-8 required (Effective 1/1/2010) ........................................................... 14
    2-1660.11 Exemption to vendor W-9/W-8 requirement (Effective 1/1/2010) .................. 15




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Chapter 1600           Warrant Writer Unit policies and procedures                                             Effective 7/1/2009

     2-1660.12 Subsequent Payments to Vendor with Refund or Exempt Vendor Tax ID
               (Effective 1/1/2010) .......................................................................................... 15
   2-1660.20   How to find a vendor in the state payee vendor file ......................................... 15
   2-1660.30   State payee vendor file changes ........................................................................ 15
     2-1660.31 Vendor change of name or tax ID..................................................................... 15
     2-1660.32 Special instructions box .................................................................................... 16
   2-1660.40   Rush vendors..................................................................................................... 16
   2-1660.50   EFT (Electronic Funds Transfer) payment method .......................................... 16
   2-1660.60   Interface vendor file requirements .................................................................... 16

2-1670.00          Foreign vendors ................................................................................................... 17

2-1680.00   1099-MISC tax form reporting and adjustments ............................................ 18
  2-1680.10   1099-MISC tax form in general ........................................................................ 18
  2-1680.20   1099-MISC tax form corrections ...................................................................... 19
  2-1680.30   SABHRS interface for 1099-MISC tax form data ............................................ 19
  2-1680.40   When is backup withholding applicable (IRC 3406(a)) ................................... 20

2-1690.00          State Procard 1099-MISC tax form reporting ................................................. 20




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Chapter 1600           Warrant Writer Unit policies and procedures              Effective 7/1/2009


2-1600         Warrant Writer Unit policies and procedures

2-1610.00 Warrant Writer Unit
The Warrant Writer Unit (WWU) provides support to state agencies in the following areas:
    AP Help Desk
    Warrant cancellations
    Warrant replacements
    Express warrants
    1099-MISC income tax forms
    Maintenance of the payee vendor file
    Issuance and distribution of state warrants
    Stop payments
    Electronic Fund Transfer (EFT) rejects
    Stale-dated warrant replacements and interunit journals for stale-dated warrants
    Forgery replacements
    Copies of cashed warrants
    Replacements of decedents’ warrants and proof of payment for investigation
Customer service and agency support is our top priority.

Most of the required forms for the Warrant Writer Unit can be found at the following website:
                      http://accounting.mt.gov/forms/sabhrs/default.mcpx.
Completed forms can be mailed, hand-delivered, or faxed (406-444-2812) to the Warrant Writer
Unit. For your records, please keep copies of all requests sent to the Warrant Writer Unit.


2-1615.00 Terms used (Warrant Writer Unit)
2-1615.10      Warrants Already Written (WAW)
Warrants Already Written (WAW) warrants are warrants that come from external files, such as
payroll and university system warrants.

2-1615.20      Vouchers for a Payment Screen
Throughout this document, you will be asked to reference the Vouchers for a Payment screen
(also referred to as the Payment Inquiry screen) for researching and confirmation: Path:
Accounts Payable>Review Accounts Payable Info>Payments>Payment.
When in this screen enter the warrant (check) number including all leading zeros in the
Reference box. Also change Remit Set ID to your agency number then click search. Refer to the
following screen.
You may have to scroll down to see the sorting criteria. Under the payment inquiry results (see
second screen), click on the blue payment reference id. This will take you to the vouchers for a
payment screen. See third print screen below.


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Chapter 1600           Warrant Writer Unit policies and procedures   Effective 7/1/2009

Payment Inquiry




Payment Inquiry Results




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Chapter 1600           Warrant Writer Unit policies and procedures              Effective 7/1/2009



Vouchers for a Payment




2-1620.00 Express checks
The Warrant Writer Unit requires express check information to be received prior to 1:00 pm each
day. Please make sure vendor is in the State Payee Vendor file. If vendor is not in State Payee
Vendor file send Vendor Information form marked RUSH to WWU with a reference to the need
of an Express Check . For more information on State Payee Vendor F ile see section 2-1655.20
Express checks are issued for emergency situations only, and are issued the same day as
requested by the agency.
Do not leave the request on e-mail or voice- mail; you must talk with one of the staff from the
Warrant Writer Unit; dial 0 and your call will be answered. You may also use the Express
Warrant form (Section 2-1610.00). If you use this form, please talk to one of the staff from the
Warrant Writer Unit. This form can be faxed to 406-444-2812.
The express checks are printed after 1:00 pm. Once the warrant is printed, the Warrant Writer
Unit will notify the requesting agency. Only personnel authorized to pick up non- mailer
warrants are allowed to pick up express checks.

2-1620.10      How to request an express check
The requesting agency needs to enter the voucher in the system, and have it approved and budget
checked. Then, they need to notify the Warrant Writer Unit by phone or by faxing over the
Express Warrant form with the voucher number, check amount, business unit, set ID, vendor
number, address location, reason for the express check, and agency contact person include phone
number.




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Chapter 1600           Warrant Writer Unit policies and procedures            Effective 7/1/2009


2-1625.00 Warrant & Warrants Already Written cancellations
Cancellations of warrants are performed for warrants which were issued in error (incorrect
amount, wrong payee, duplicate payments) and are still outstanding. To request a cancellation
complete the Warrant Cancellation Form (Section 2-1610.00) and include the voucher for
payment screen and send to Warrant Writer. On the cancellation form please provide the
account and fund to be used for WAW warrants only. Please make sure to keep copy of request
for your records.
The Warrant Writer Unit will not process cancellations for warrants that are lost, stolen, or
destroyed, and still due to the payee. These payments will need to be reissued by the Warrant
Writer Unit, as stated in MCA 17-8-306. See the Warrant Replacement Section 2-1635.00 for
further information.

2-1625.10      Warrant & Warrants Already Written cancellation confirmation
The Warrant Writer Unit does not provide confirmation of cancellations, so please keep
documentation of your requests.
You can verify the status in SABHRS under the Voucher Accounting Entries. The path is
Accounts Payable>Review Accounts Payable Info>Vouchers>Accounting Entries. If the
cancellation is complete, the Accounting Information screen will have additional Posting
Processes, one for the Payment Cancellation and one for Voucher Closure. This is where you
will see the CAN and CLO journals. Make sure to click on the View All button.
Confirmation can also be found on the Voucher for a Payment screen. If the cancellation is
complete, there will be a date of cancellation on the additional info tab (“cancel date”),
documentation of who requested the cancellation in the comments box, “void” in the payment
status field, and “close” in the cancel action field.
For warrants that have vouchers, the system automatically reverses the accounting entries when
the cancellation is complete. If the voucher was marked 1099-MISC tax form applicable, it also
reverses that amount, so no other adjustments will need to be made. If you are requesting a
cancellation for a WAW (Warrants Already Written) warrant, you must provide the accounting
entries with the cancellation form so that the Warrant Writer Unit can do a WWU source journal
to transfer the funds back to your agency.
Listed below are ways to verify that the cancellation has been completed :




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Chapter 1600           Warrant Writer Unit policies and procedures              Effective 7/1/2009

Payment Inquiry Screen: on Payment Detail Tab look for Payment Status of Void




Payment Inquiry Screen: on the Additional Info tab look for Cancel Action of Close




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Chapter 1600           Warrant Writer Unit policies and procedures                 Effective 7/1/2009

Vouche r Accounting Entries Screen: look for Payment Cancellation Journals of CAN and
CLO




2-1625.20      State Payroll warrant cancellation
Payroll warrants that are incorrect must be initiated through the State Human Resources
Division. For more information, please contact 406-444-3871.

2-1625.30      Stop payments
The procedure for warrant stop payments has been absorbed into the cancellation process. See
Section 2-1625.00.

2-1630.00 Stale-dated warrant replacements (MCA 17-8-303)
State of Montana warrants have an expiration date of 180 days. In SABHRS, the actual date for
a payment to be considered stale is up to 210 days outstanding. If a warrant is not cashed within
this time, it becomes “stale”. SABHRS runs a month-end batch process that finds all payments
that are 180-210 day outstanding, and marks them as stale-dated. All funds from stale-dated
warrants are transferred into a stale-dated fund that is maintained by the WWU.

2-1630.10      Agency review of monthly stale-dated report
Agencies should review the Document Direct monthly stale-dated report. An agency has the
option of requesting the Warrant Writer Unit to reissue the warrant if a payee is still entitled to




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Montana Operations Manual (MOM) Volum e II
Chapter 1600           Warrant Writer Unit policies and procedures                  Effective 7/1/2009

the funds, or, if a payee is longer entitled to the funds, requesting an interunit journal entry to
return the funds to the agency.
If you do not have the current correct payee mailing address, please do not request a warrant
reissue or interunit journal entry.

2-1630.11      Payee is entitled to the stale-dated funds
Please search the Vouchers for a Payment screen for a status of stale-date prior to requesting a
replacement.
The Stale-Date Warrant Replacement Affidavit form can be found on the Department of
Administration’s forms website (Section 2-1610.00). The form must be notarized unless the
original warrant is on file at the Department of Administration. A request for a Stale Date
replacement may be done in the following ways:
   1.   The agency can request that the Warrant Writer Unit send out the Stale-Date Warrant
        Affidavit form, or
   2.   The agency can complete the Stale-Date Warrant Affidavit from and send it to the payee,
        or;
   3.   The individual requesting warrant replacement can be directed to complete the Internet
        form and return it to the Warrant Writer Unit.
If option one is chosen, the agency faxes or deadheads the Voucher for Payment screen to the
Warrant Writer Unit with the correct payee mailing address noted.

If option two is selected, the agency completes box numbers 1 to 8 on the form. The remainder
of the form (boxes 9 to 14) is completed by the payee. Once the payee has completed the form,
the payee can mail or fax (406-444-2812) the form to the Department of Administration; PO Box
200102; Helena, MT 59620-0102.

2-1630.12        Payee is not entitled to the stale-dated funds
An agency can request an interunit journal to return warrant funds only if the payee was not
entitled to the original funds. The agency must complete and sign the Stale-Date Interunit
Journal Request Affidavit (Section 2-1610.00) form as the legal owner. This money cannot be
returned to an agency for an invalid address and reissued at a later date by the agency.
All stale-dated funds must be reissued by the Warrant Writer Unit or the Department of Revenue,
Abandoned Property Division. If an agency does not have the warrant, the agency must have the
affidavit notarized. Once the Warrant Writer Unit has initiated the journal, the requestor will be
notified by email that the journal is ready for them to process. Due to multiple requests by other
agencies the email will not include the journal number. The journal numbers can be found by
running the Inter-Unit Journal Report. This is found under General Ledger> General Reports>
Interunit Journals. All inter unit journals will be under business unit 61010 and the description
will start with Transfer Stale Date funds.

2-1630.20      Stale-date confirmation
The Warrant Writer Unit does not provide confirmation of any stale-date warrant replaced. To
see if payment has been replaced, see Section 2-1615.20.


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Chapter 1600           Warrant Writer Unit policies and procedures                 Effective 7/1/2009


2-1630.30      Stale-date warrants sent to Abandoned Property
Three years and six months after being stale-dated, a warrant will be reclassified as unclaimed
property, subject to the provisions of MCA 70-9-815. If the payee or legal owner of a stale-
dated warrant presents it for payment, or presents a claim for payment after that time, the
presentation must be to the Department of Revenue as provided in MCA 70-9-815.

2-1635.00 Warrant (non-WAW) replacement (MCA 17-8-306)
Replacement warrants are issued for warrants that have been lost, stolen, spoiled, or destroyed.
This money cannot be returned to an agency for an invalid address and reissued at a later date by
the agency.

2-1635.10      Warrant replacement request by agency or payee
Please search the Vouchers for a Payment screen for a status of outstanding prior to requesting a
replacement. The Agreement to Indemnify form and the Agency Request Initiate Warrant
Replacement form can be found on the Department of Administration’s forms website (Section
2-1610.00). This form must be notarized. A request for replacement may be done in the
following ways:
   1.   The agency can request that the Warrant Writer Unit send out the Agreement to
        Indemnify form, or
   2.   The agency can complete the Agreement to Indemnify form and send it to the payee, or;
   3.   The individual requesting warrant replacement can be directed to complete the Internet
        form and return it to the Warrant Writer Unit.
If option one is chosen, the agency completes the Agency Request Initiate Warrant Replacement
form (Section 2-1610.00). The form and the payment inquiry screen are then forwarded to the
Warrant Writer Unit.

If option two is selected, the agency completes the Agreement to Indemnify form by only
completing the top section of the form: Payment date, Name of payee, Warrant number, and
Dollar amount. The remainder of the form is completed by the payee and notarized. Once the
payee has completed the form, the payee can mail or fax (406-444-2812) the form to the
Department of Administration; PO Box 200102; Helena, MT 59620-0102.

2-1635.20      Replacement issued by the Warrant Writer Unit
Once the Warrant Writer Unit has received the signed agreement from the payee, the warrant
replacement takes three days. All replacements are issued as non- mailers and returned to the
requestor. It is the agency’s responsibility to send the warrant to the payee at the correct address.
The process to replace a warrant involves voiding the original warrant and reissuing from the
original voucher; thus, the replacement warrant is identical to the original except for the warrant
number.
If the request for a replacement comes from the payee, the Warrant Writer Unit will apply the
same rules listed above. The replacement warrant will be issued as a non- mailer and sent to the
agency to mail to the payee.



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Montana Operations Manual (MOM) Volum e II
Chapter 1600           Warrant Writer Unit policies and procedures               Effective 7/1/2009


2-1635.30      Warrant replacement confirmation
For confirmation of the replacement, use the Voucher for a Payment screen, or navigate through
the Voucher entry. Path Accounts Payable>Vouchers>Add Update>Regular Entry. Once in this
screen, go to the payments tab, view all, go to Scheduled Payment 2, find Scheduled Payment
box, and a payment date and reference number will be in the boxes. This is the replacement
warrant number.

2-1635.40      Original warrant received after replacement issued
If your agency receives the original warrant back, DO NOT send the warrant to the Warrant
Writer Unit attached to a “Cancellation” form as that is a separate procedure.
Do attach a note stating the Warrant Writer Unit has already replaced the warrant, and the
warrant needs to be added to that documentation.

2-1640.00 Warrant Already Writen (WAW) replacements (MCA 17-8-306)
WAW replacements are done differently. Because these warrants do not have vouchers, a
cancellation is done on the original warrant, and a new voucher is issued using the agency’s
business unit and accounting entries as provided. This money cannot be returned to an agency
for an invalid address and reissued at a later date by the agency.

2-1640.10      How to request WAW replacement
Please search the Vouchers for a Payment screen for a status of outstanding prior to requesting a
replacement. The WAW Agreement to Indemnify form and the Agency Request Initiate Warrant
Replacement form can be found on the Department of Administration’s forms website (Section
2-1610.00). This form must be notarized. A request for replacement may be done in the
following ways:
   4.   The agency can request that the Warrant Writer Unit send out the Agreement to
        Indemnify form, or
   5.   The agency can complete the WAW Agreement to Indemnify form and send it to the
        payee, or;
   6.   The individual requesting warrant replacement can be directed to complete the WAW
        Internet form and return it to the Warrant Writer Unit.
If option one is chosen, the agency completes the Agency Request Initiate Warrant Replacement
form (Section 2-1610.00). The form and the payment inquiry screen are then forwarded to the
Warrant Writer Unit.

If option two is selected, the agency completes the WAW Agreement to Indemnify Form by only
completing the top section of the form: Payment date, Name of payee, Warrant number, and
Dollar amount. The remainder of the form is completed by the payee and notarized. Once the
payee has completed the form, the payee can mail or fax (406-444-2812) the form to the
Department of Administration; PO Box 200102; Helena, MT 59620-0102.
DO NOT request these on a “cancellation” form as that is a separate procedure.




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Chapter 1600           Warrant Writer Unit policies and procedures                Effective 7/1/2009


2-1640.20      Warrants Already Written (WAW) replacement process
After the Warrant Writer Unit has received the signed and notarized WAW Agreement to
Indemnify form from the payee, (see Section 2-1640.30), these warrants are printed the next day
as non- mailers and returned to the agency. It is the agency’s responsibility to deliver or mail the
warrant to the payee at correct address.
A WWU journal is done to return the original funds to the agency. The journals are done using
the requesting agency’s business unit and provided accounting entries.

2-1640.30      State Payroll warrants never received by payee
The State Payroll Warrant Replacement Form can only be used for state payroll warrants that
were never received by the employee. An authorized employee in the agency’s payroll or human
resource area must sign the State Payroll Warrant Replacement Form guaranteeing that the
employee will not cash the original if it is found.
Replacement confirmation can be found using the Voucher for a Payment screen.
All University Payroll replacements need to follow 2-1640.00 process.

2-1640.40      State Payroll decedent warrants
Decedent warrants to be replaced to the beneficiary are initiated through the State Human
Resource Division. For more information, please contact 406-444-3871.
The original warrant is cancelled, and a new voucher is issued to the beneficiary as assigned on
the Designation of Person Authorized to Receive Decedents Warrants form. The replacement
warrant is printed as a non- mailer the following day and sent to the State Human Resources
Division. A WWU journal is then initiated to return the funds to the State Human Resources
Division.
Confirmation of replacement can be found using the Voucher for a Payment screen.

2-1640.50      Spoiled or destroyed warrants
A spoiled or destroyed warrant is a warrant that has been damaged to the point that it has been
deemed un-cashable. The process to reissue a spoiled or destroyed warrant is treated similar to
that of a lost warrant. To determine who must fill out the Agreement form it must fall under one
of these situations. In situations 2 and 3 the form must be notarized unless we have some or part
of the damaged warrant.
   1. If the warrant is damaged during the printing or mailing process, Warrant Writer will
      handle the replacement process no Agreement form is needed, or
   2. If the warrant is damaged within the control of a State Agency, the Agreement to
      Indemnify and Hold Harmless must be completed by the initiating agency, or
   3. If the warrant is damaged outside state agency control. The payee must complete the
      Agreement to Indemnify and Hold harmless.




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Chapter 1600           Warrant Writer Unit policies and procedures               Effective 7/1/2009


2-1645.00 Copies of cashed warrants
Copies of cashed warrants are provided to the agencies as proof of payment by request only.
Each agency must provide the payee name, warrant number, amount, date cashed, and spray
number or sequence number, when applicable. The spray or sequence number is a number
assigned by the bank when the item is presented for payment. The WWU only needs the spray
or sequence number for warrants that were cashed before April 25, 2001. Please use the Agency
Request for Copy of a Cashed Warrant form along with the Voucher for a Payment screen to
request warrant copies.
If the warrant was issued in SABHRS, it will have a spray number. The instructions to retrieve
the spray number are as follows: Path Reporting Tools>Query>Query Viewer. The name of the
query is MTAP_SPRAYNBR. Run the report to HTML or Excel. Enter the reference number
(warrant number), then click view results. If the warrant has been archived, please contact 406-
444-3092.
If the warrant was issued out of SBAS, it will have a sequence number. All agencies were sent
the monthly SBAS 395 microfiche report through February 2000, of warrants that were issued
out of SBAS. This fiche contains all the information you will need to provide to the WWU. If
you cannot locate your fiche, you are welcome, with an appointment, to search the fiche in the
WWU.
If there is a rush for a copy, please include that in the request, and it will be given a priority
status. Also, please keep in mind agencies are welcome to make an appointment to come to the
Warrant Writer Unit to retrieve this information if the copies cannot be provided as soon as
desired.


2-1650.00 Forgeries
Forgeries can only be identified after a warrant has been cashed, and the payee has been
provided a copy of the cashed warrant and declares it as a forgery.
Please provide Warrant Writer the payment inquiry screen marked “Please begin Forgery
Process” along with a state vendor number or vendor form to add the payee to the state payee
vendor file. Please provide the payee name, warrant number, cashed date, and spray number, as
more copies of the cashed warrant will be needed to complete the process.
Instructions to retrieve the “Spray” number are as follows: Reporting Tools> Query> Query
Viewer. The name of the query is MTAP_SPRAYNBR. The Warrant Writer Unit will send the
payee a copy of the cashed warrant and a forgery affidavit that must signed, notarized, and have
a police report number. Once returned, the documentation goes to the Treasury Unit who
pursues collection from the depository bank. Forgery collections usually take three to four
months, but may take longer. Please keep this in mind.

2-1650.10      State recovery of funds
If the State recovers the funds, the Treasury Unit will record a journal entry. The Warrant Writer
Unit will issue a non- mailer replacement warrant to the payee for the amount due, and the
warrant will be returned to the requestor to mail to the payee.



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Chapter 1600           Warrant Writer Unit policies and procedures               Effective 7/1/2009


2-1650.20      Claim refused by bank
If the forgery claim is refused by the bank, the Warrant Writer Unit will notify the agency, and a
copy of the rejection letter will be forwarded to the requestor.

2-1660.00 Vendor file requirements
All vendor files, including interface files, must contain the following information:
      Vendor Name (First Middle Last)
      Vendor Tax ID (FEIN or SSN)
      Vendor Mailing Address including City, State, and Zip Code

The following vendor information is encouraged to be included:
    ACH Direct Deposit Information
         Must be a Voided Check or a completed Direct Deposit Form
         Deposit slips will not be accepted
    Vendor Phone Number
    Vendor Email Address

When setting up the vendor in a vendor file, keep in mind that:
   FEIN/SSN cannot be used as the vendor number, it should be system generated
   The vendor files do not establish 1099 status on payments, the voucher doesat time of
      creation
   When using REFUND or EXEMPT in place of the Vendor Tax ID, make sure that the
      payment made to the vendor is not 1099-MISC tax applicable
   Agencies that make payments to local governments must follow MCA 17-8-311
Interface vendor files are required to be maintained using the same guidelines as the State vendor
file.

If the Social Security Number (SSN) or Federal Employee Identification Number (FEIN) is
available, please provide it. Refunds do not require an SSN or FEIN. However, the request must
be clearly marked as a refund or non-taxable event, and the requesting agency will be held
responsible for those.

2-1660.10      W-9/W-8 required (Effective 1/1/2010)
A W-9 or W-8 is required on all new vendors that are added to the State Vendor file or interface
payee files, unless the requirements of Section 2-1660.11 are met. The W-9/W-8 must be
completed by the vendor.
We recommend that agencies use the Montana Substitute W-9 Form. See Section 2-1610.00.
When a W-9 or W-8 is requested and required, the invoice is not considered properly completed
until the receipt of the W-9 or W-8 in regard to the timely payment requirements of MCA 17-8-
242.




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2-1660.11      Exemption to vendor W-9/W-8 requirement (Effective 1/1/2010)
If the payment is for a refund situation or exempt from 1099-MISC requirements, the vendor can
be established with no W-9 or W-8. They can be input onto the system with REFUND or
EXEMPT as the Vendor Tax ID.

2-1660.12       Subsequent Payments to Vendor with Refund or Exempt Vendor Tax ID (Effective
                1/1/2010)
Whenever an agencies is going to make a payment to a vendor that has REFUND or EXEMPT
as the Vendor Tax ID, they must ensure that the subsequent payments are not 1099-MISC
applicable. If they are 1099-MISC applicable, the agency must request a W-9/W-8 and have the
vendor input with a valid Vendor Tax ID before the payment can be made.

2-1660.20      How to find a vendor in the state payee vendor file
Agencies are required to research a vendor’s status in the file before requesting an addition or
change to the file. The following path is used to search for a vendor: Vendors > Vendor
Information > Add/Update > Vendor or Review Vendor.
If a change of status for the payee is needed, line item 4 (Action) of the vendor form needs to be
properly filled out so that WWU can correctly make changes to the vendor. Proper
documentation must be attached for any change requested. Acceptable documentation may
include:
      A signed W-9/W-8 from payee
      A postal notice
      Letterhead or an invoice with the change
      Email from payee
      Copy of a signed letter from the person or business requesting the change

Requests without proper documentation will be returned to the requestor.

2-1660.30      State payee vendor file changes
A W-9/W-8 is required for all new vendors to be input into the state payee file.
In order for payments to be made to any person or business using the state vendor file, a vendor
form must be completed by the agencies and entered by the Warrant Writer.Unit. The Vendor
Information form is located at the forms website link (see Section 2-1610.00). Lines 1 through
12 must be completed, and line 13 must be signed by an authorized agency employee.
A separate vendor form for each vendor to be added or changed is required. These requests can
be sent to the Warrant Writer Unit by deadhead mail, hand-delivered, mailed through the United
States Post Office, or faxed (406-444-2812). Note: If you have several vendor forms, please
deadhead them to us.

2-1660.31       Vendor change of name or tax ID
If a business has changed their FEIN and name, the Warrant Writer Unit will add them as a new
vendor. The same rule applies if the vendor has a new FEIN and the same name. The Warrant


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Writer Unit will make sure to inactivate the old vendor. If the vendor has the same FEIN and a
new name, the Warrant Writer Unit will change the name. Documentation is needed to make the
changes. The best documentation is a W-9. The W-9 can be found by going to
http://www.irs.gov. We encourage the use of the Substitute W-9 forms that can be found on the
DOA forms website (see Section 2-1601.00).

2-1660.32      Special instructions box
We have added a special instructions box on the vendor form for explanations to change or add
information to vendor. Note: It will be the Warrant Writer Unit’s final decision on what will be
changed or added to the vendor. Also, keep in mind that over 50 state agencies use this payee
vendor file. You may not be the only agency paying a certain vendor. Please do not request the
Warrant Writer Unit to deactivate or to delete address 1. This is attached to the 1099-MISC tax
form.

2-1660.40      Rush vendors
Emergency or rush vendors need to be received by the Warrant Writer Unit by 3:00 pm. Please
send an email, or contact one of the staff members, to let us know that you are sending an
emergency or rush vendor. This will ensure that it gets completed before the end of the day.
Also, make sure to put “Rush” on the top of the vendor form.

2-1660.50      EFT (Electronic Funds Transfer) payment method
The Warrant Writer Unit encourages the use of EFT (electronic funds transfer). To have bank
information set up, please provide a direct deposit form that the payee can request through their
bank or a copy of a voided check. Please do not send deposit slips, as the bank routing number
may be incorrect.
The Warrant Writer Unit also encourages the use of email for sending payment advice. This
reduces the cost of sending an advice by mail. Send this information along with the vendor
information form to the Warrant Writer Unit to be input into the payee file.

2-1660.60      Interface vendor file requirements
For complete instructions on vendor filing requirements for interface systems go to
http://mine.mt.gov/content/documentation/sabhrs/financials/IN_Accounts_Payable_Load
or see the chart below
Field                      Required   Start Position   Length   Format    Example
Warrant Group              Y          1                6                  1
Record Type                Y          7                1        2         2
Record Sequence Number     Y          8                1        '0'       0
Row Identifier             Y          9                3        'VND'     VND
Vendor Set ID              Y          12               5                  ADM01
Vendor ID                  Y          17               10                 147
Vendor Class               Y          27               1                  R
Vendor Address Location    Y          28               3        Numeric   001



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Field                      Required   Start Position   Length   Format    Example
Name1                      Y          31               40                 ABC Paper Supply
Name2                                 71               40
Address Line 1             Y          111              35                 1000 North Main
Address Line 2                        146              35
Address Line 3                        181              35
City                       Y          216              30                 Helena
State                                 246              4                  MT
Country                               250              3
Postal                                253              12                 59621
Tin Type                              265              1                  S
Tin/SSN                               266              9                  111223333
Payment Method                        275              3
Bank Account Number                   278              17
DFI ID                                295              12
EFT Payment Format                    307              3
EFT Transaction Code                  310              2
Vendor Location                       312              10                 000001
Filler                                322              3


2-1670.00 Foreign vendors
If by law, a vendor with foreign status is not required to have a US TIN, an agency shall obtain a
signed Form W-8 from the vendor before the vendor is added to the vendor file. All W-8’s must
be the original no faxes, emails or copies can be accepted per the IRS. There are several
different forms of the W-8. Please make sure to select correct one.
       Form W-8BEN - benefical owner
         Use to document payees non US status
            No TIN required
         Also used for treaty claims on payments except for services performed by an
           individual
               o Must have US TIN
       Form W-8ECI -effectively connected income
         Entities conducting business activities within the US
            Must have US TIN
       Form W-8EXP – Exempt Certificate of Foreign Government or Other Foreign
        Organization for United States Tax Withholding
         Limited application; foreign governments only
       Form W-8IMY Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or
        Certain U.S. Branches for United States Tax Withholding
         Foreign agents of foreign beneficial owners
         Form 8233 Exemption from Withholding on Compensation for Independent (and
           Certain Dependent) Personal Service of a Nonresident Alien Individual
            Individuals performing services claiming treaty benefits
            Must be sent to IRS with in 5 days of acceptance for verification of treaty claims



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For more information on W-8s, visit the following website:

http://www.irs.gov/instructions/iw8/index.html.


2-1680.00 1099-MISC tax form reporting and adjustments
The best way to make sure the 1099-MISC tax forms are correct is to mark the voucher at the
time of creation. This will reduce the amount of clean up at the end of the year.
The following is crucial in making certain 1099-MISC tax form data is correct:
      Persons or businesses issued 1099-MISC tax forms must be on a state vendor file or
       interface file with a valid payee ID number. These numbers must match the IRS tax file
       name and number, or the IRS will report the data as incorrect.
      In general, a federal TIN (EIN) is identified with the name of a business. A social
       security number (SSN) is identified with the name of an individual. If the name is not
       listed identically to the IRS records, the IRS will not accept the data. In addition, if the
       payee is using a SSN for their business, the number must be put in the name of the person
       that owns the SSN and then DBA (doing business as) business name.

2-1680.10      1099-MISC tax form in general
It is important to use the correct box number on the 1099-MISC tax form.
      Box 1 Rental payments
      Box 2 Gross royalty payments
      Box 3 Other income
      Box 4 Backup withholding
      Box 5 Fishing boat proceeds
      Box 6 Medical or health care services
      Box 7 Non-employee compensation
      Box 8 Substitute payments in lieu of dividends or interest
      Box 9 Payer made direct sales of $5,000 or more of consumer products to a buyer
       (recipient) for resale
      Box 10 Crop insurance proceeds
      Box 13 Excess golden parachute payments
      Box 14 Gross proceeds paid to an attorney.
There are dollar limits that have to be met before it is necessary to report to the IRS. Boxes 1, 3,
6, 7, and 10 have a limit of 600 dollars or more. Boxes 2 and 8 have 10 dollars or more. Boxes
4, 5, 9, 13, and 14 have no limit. These limits are met by SAHBRS running a consolidation
process to total all reportable payment from all State Agencies. Please make sure you use the
correct box number for the type of payment your agency has made. For more information on the
box numbers, please visit the following IRS website:
http://www.irs.gov/instructions/i1099msc/index.html




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2-1680.20      1099-MISC tax form corrections
Agencies can make corrections to the 1099-MISC tax form file at any time during the current
year. Agencies will have until the second week in January of the following year to make
corrections. After that week, corrections to 1099 Misc tax form file need to be sent to Warrant
Writer using the 1099 Form Correction Duplicate form found on our website (2-1600.00)..
For all wire transfers processed in the A/R module that are 1099-MISC tax form applicable,
must be add into the 1099-MISC Adjustments or Update panel.
The 1099-MISC panels are in SABHRS Applications > Financials > Vendors > 1099/ Global
Withholding. To make an adjustment to the 1099 balance go to Maintain > Adjust Withholding.
1099 balances and vouchers can be viewed in SABHRS Applications > Financials > Vendors >
1099/ Global Withholding >Review > Voucher by Vendor OR Vendor Balances by Class. There
is also a payment query available to provide agency staff with the information needed to review
for 1099 reporting purposes. The query name is MTAP_Payment_Detail_Report.

2-1680.30      SABHRS interface for 1099-MISC tax form data
For those agencies or systems that provide 1099-MISC tax form data through the SABHRS
interface process, you will be required to give the WWU a file that meets the layout
specifications provided in the interface documentation found at this website:
http://mine.mt.gov/content/documentation/sabhrs/financials/IN_1099_Balances_Load.
Any file that does not meet these specifications will not be accepted. You will be required to
correct it, and provide us with a new file.
1099 Line Record Layout
Field                  Required   Field    Start       Length    Format              Example
                                  Type     Posi tion
DOC-CD-1               Y          Char     1           4                             MSC1
TIN/SS N               Y          Char     5           9                             511000116
AP BUSINESS UNIT       Y          Char     14          5                             6101Z
WARRANT NBR                       Char     19          10        Warrant Number      999901
PAY-AMOUNT             Y          Nbr      29          17        PIC -(13).99        5241.63
VENDOR-TYPE                       Char     46          1         F=business or       F
                                                                 entity
                                                                 S=SSN
                                                                 D=Don’t know
FORE IGN ADDRESS                  Char     47          1         1=Foreign
INDICA TOR                                                       space=Domestic
VENDOR-NAME-1          Y*         Char     48          40                            ABC
                                                                                     HARDWARE
VENDOR-NAME-2                     Char     88          40
ADDRESS                Y*         Char     128         35                            517 FIFTH
                                                                                     STREE T
FILLER                            Char     163         3                             Spaces
CITY                   Y*         Char     166         30                            HELENA
FILLER                            Char     196         5                             Spaces




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Field                  Required   Field    Start       Length    Format             Example
                                  Type     Posi tion
STA TE                 Y*         Char     201         2                            MT
POSTA L                Y*         Char     203         9                            596204999
COUNTRY                Y*         Char     212         3                            USA
ADJUS TME NT-DT                   Date     215         8         YYYYMMDD           20080213
DESCRIP TION                      Char     223         20
VENDOR_ID                         Char     243         10
(FILLE R)                         Char     253         73                           Spaces

These files need to be given to the SABHRS staff no later than date specified in the memo, and a
test file (if you are sending one) should have been sent no later than date specified in the memo.
It can be a partial file. If you have any questions about the file, please call SABHRS at 444-
4337.
Make certain that you follow the valid ID requirements discussed in the preceding section. Most
of the problems in past years with 1099-MISC tax form data have been due to incorrect tax ID
numbers and names provided by agencies.

2-1680.40      When is backup withholding applicable (IRC 3406(a))
The internal revenue code 3406 states backup withholding is applicable in the case of any
reportable payment if
       the payee fails to furnish his/her Taxpayer Identification Number (TIN) to the payer in
        the manner required
       the IRS notifies the payer that the TIN furnished by the payee is incorrect
       there has been a notified payee underreporting
       there has been a payee certification failure
       then the payer shall deduct and withhold from such payment a tax equal to the product of
        the fourth lowest rate of tax applicable under section 1(c) and such payment.

2-1690.00 State Procard 1099-MISC tax form reporting
The State of Montana has implemented a procurement card program designed to allow agencies
the ability to make small purchases, currently defined as $5,000 or less per transaction, using a
procurement card (US Bank Visa).
The intent of this program is to increase the efficiency of the purchasing system by eliminating
steps and costly paperwork required to make small purchases. For more information on this
policy, go to the following website:
http://mine.mt.gov/programs/procard/default.mcpx.


1099-MISC tax form Procard transactions are downloaded from the US Bank website, uploaded
into SABHRS, and combined with other 1099-MISC tax form reportable income. Due to
security reasons, US Bank allows limited access to the information. Warrant Writer will not be
held responsible for incorrect information that is supplied to us through US bank through the
Merchant Card Agreement.


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All state node procurement 1099-MISC tax form reporting with the exception of the Department
of Transportation and the University Systems, which have their own nodes, is done by the
Warrant Writer Unit. The Warrant Writer Unit will not be held responsible for not reporting
1099-MISC income on these nodes.




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