1099 Reporing Requirements

Criteria for Determining Payments Subject to 1099 Reporting NC A&T State University is accountable to the Internal Revenue Service and the North Carolina Department of Revenue for payments made for services rendered by non-University employees. In order for the University to comply with this obligation, disbursements charged against certain expenditure object codes are reviewed annually. Expenditure object codes reviewed are:

  • 615xx Workers Compensation (payments to doctors, hospitals, etc.)
  • 617xx Board Member Compensation
  • 619xx Legal and Accounting Fees
    • Consultant Fees
    • Medical Fees (all forms of health care providers, etc.) 
    • Honoraria
    • EXCEPTION: 61922 & 61992 (documented travel reimbursements)
  • 734xx Printing and Binding Services
  • 735xx Repairs and Maintenance
  • 737xx Advertising 
  • 739xx Other Current Services 
  • 741xx Rental of Real Property 
  • 742xx Rental of EDP Equipment 
  • 743xx Rental of Other Equipment 
  • 74903 Memberships 
  • 74904 Royalties 
  • 75800 Buildings 
  • 75900 Other Capital Outlay 
  • 769xx Other Aids & Grants 

Disbursements may be charged against any expenditure object code listed above and still be excluded from 1099 reporting if any of the following conditions exist:

  1. Payments made to a corporation (except health care providers, which are included).
  2. Payments made to non-profit activities, governmental agencies, etc.
  3. Rental payments made to real estate agents.
  4. Payments made for the purchase of tangible merchandise.

Frequently, invoices for services rendered include the costs of travel or materials necessary in providing the service. Under these circumstances, the University has followed the practice of including the total amount of the contract/invoice in its 1099 reporting process.

In the case of travel expenses, if a consultant's original receipts are submitted to the University for reimbursement, those receipts should be included with the purchase request and coded to object 61922. For "Other Contracted Services" travel receipts, the code is 61992. The amount for travel expenses will then be excluded from 1099 reporting.

See also:

Independent Contractor Services
Criteria to Distinguish Employee/Independent Contractor