For State Agencies:
We would like agencies to be aware of how the Advantage system determines if payments are eligible for 1099 reporting. In Advantage, it is based on the Object Code and the Vendor Classification (see the Organization section of VCUST).
Be sure to check the OBJ table (Object) for the Object Codes you are using on your payments.
To see if the Object Code is 1099 reportable, go to OBJ table and search for your Object Code and Fiscal Year. Objects may change from year to year depending on IRS guidelines. In the 1099 Info section, if the 1099 Income Code and Income Type fields are populated, then the Object is reportable. If the Object is reportable and the Vendor has a classification other than Corporation, a 1099 will most likely be issued.
Please Note: A 1099 will be issued, regardless of Classification, if the Type of Income is 6, Medical Payments.
