The Internal Revenue Code requires that a form 1099 be filed for reportable payments. The Office of Management and Budget, Vendor Registry provides oversight and assistance with 1099 reporting, as well as mailing supported 1099 forms to recipients and electronic filing to IRS.
Here you will find resources regarding 1099 reporting and 1099 maintenance. Please read the 1099 Information Disclaimer at the bottom of this page. For questions, contact Vendor Registry or 701.328.2773.
Manuals and Training Materials
- 2019 1099 User Group Meeting Presentation/Corrections Guide
- 1099 PeopleSoft queries and roles
- Reportable vendors vs reportable payments
- Explanation of different withholding classes
- Choosing the correct location for the payment
- Correcting withholding information within voucher
- Paying state employees
Agency Guidelines and Responsibilities
Agencies hold a large amount of the responsibility for accurate 1099 reporting. Also refer to the Office of Management and Budget Payroll and Miscellaneous Fiscal Policy 110 - Form 1099 Compliance.
- Prior to obtaining a Supplier ID; collecting of a W-9, Substitute W-9, W-8 or other required paperwork is the responsibility of the agency requesting to issue payment.
- If the supplier or individual needing payment uses the online self-registration the agency is no longer responsible for collecting a W-9, W-8, etc. Vendor Registry recommends you send your payee to our online Supplier Registration.
- It is the responsibility of the agency to verify the accuracy of the payment amount and determine which payment portion, full or partial, is reportable. The accounts payable person is also to ensure payment is being made on the correct Location and on the correct 1099 Type.
- Accounts Payable clerks are responsible for ensuring required data used in filing 1099 Forms is input in PeopleSoft, e.g.. 1099-S Land Descriptions.
- An agency's grant administrator is to determine if payments made under a grant program are reportable and on which 1099 form.
- Clean-up of vouchers, changes to reportable or non-reportable voucher lines, and adjustments to reportable amounts is a routine maintenance process to be performed by your agency's 1099 maintenance staff. This includes reversal of vouchers where checks are returned or voided. Maintenance staff should also be running 1099 queries regularly verifying reportable payments were made on the correct 1099 reportable Locations.
- Agencies are responsible for complying with the annual 1099 timeline set and distributed by OMB, Vendor Registry. Agency's 1099 maintenance staff are to meet all 1099 task deadlines to ensure the State is able to meet IRS deadlines.
- Agencies are responsible for their own records retention of 1099 corrections made and reports run based of the current NDIT Records Retention schedule.
- Should the State of North Dakota be audited, it is the responsibility of the agency to provide the following documentation to The Office of Management and Budget or the requesting IRS Auditor:
- Documentation concerning whether or not payments are reportable
- How this determination was made through grant legislation, invoices, contracts, etc.
- Any adjustments made to the vendor’s 1099 information
- Should it occur, responsibilities from any fines, penalties, etc. will be assumed by the agency that issued payment.
Office of Management and Budget, Vendor Registry Guidelines & Responsibilities
The state is NOT responsible for issuing a 1099 for payments made with a procurement card or via Single Use Account (SUA Location). The state IS responsible for issuing a 1099 for payments made by check/ACH. If a vendor was paid by both methods, the state is responsible for those payments made by check/ACH.
- It is the responsibility of Vendor Registry to review and approve all online Supplier Registration applications or assist suppliers with getting registered. Vendor registry will manually set-up suppliers submitted through the Vendor Registry Work Request System with the appropriate paperwork.
- A link to current IRS forms W-9 and other 1099 forms for agencies and suppliers will be made available on the OMB website.
- Vendor Registry is responsible for testing and ensuring PeopleSoft meets IRS Regulations regarding filing of supported 1099's.
- It is the responsibility of Vendor Registry to meet IRS 1099 deadlines.
- Vendor registry will create and coordinate the mailing of 1099-MISC, 1099-G, and 1099-S forms for supported agencies and political subs.
- 1099 training and distribution of 1099 information will come from Vendor Registry.
- Office of Management and Budget, Vendor Registry will electronically file supported 1099 forms data to IRS and confirm acceptance.
- 1099 correction spreadsheets and supporting documentation from agencies will be kept for records retention at Vendor Registry.
- OMB’s Timeline for 1099 Processing:
- Mid January agency corrections are due and 1099's are printed and mailed.
- January 31st, the 1099 file is submitted to IRS.
- Once the electronic files are accepted by IRS, any 1099 corrections needed must immediately come through Vendor Registry.
- February and March of each year, any 1099 reprints will be done on Wednesday of each week.
1099 Information Disclaimer
To ensure compliance with requirements imposed by the IRS, any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This web site may contain links to other locations. These links should be considered referrals only, and should not be taken as an endorsement.