|CMP 421-03: Tax Reporting IRS Form 1099|
To code disbursements for professional fees, independent contractor services, royalties, copyright payments, and other payments requiring tax reporting
Internal Revenue Service
All payments for services, rentals, royalty, and copyright payments made to payees other than corporations, governmental agencies, colleges, and universities, excluding employee expense reimbursements and payments to nonresident aliens. Exceptions to the corporation exemption are: medical corporations and attorneys.
All professional fees, and certain other payments that require reporting on IRS Form 1099 as listed in the table below are to be charged to the indicated object/sub-object code(s). NAU, along with other state agencies, provides Form 1099-related information to the State of Arizona Department of Administration for preparation of consolidated Form 1099s. Since tax reporting is required for professional fees, etc. for individuals or organizations other than corporations, government agencies, and colleges/universities, it is important that departments obtain accurate social security/taxpayer ID numbers, names and addresses for applicable payments/orders to new vendors.
Type of Service and Code for Payments Requiring IRS Form 1099
|Type of Service||Where Reported||Object/Sub-object Code|
||All object/sub-object codes beginning with 7360|
|All royalty fee/copyright payments||
||Object/Sub-Object code 7520 10|
|Awards/Prizes (not for service performed)||
||Object/Sub-object code 7535 10 (Scholarship payments should be coded to the correct 77xx object code) Awards or prizes paid to employees should be processed through the Payroll Office.|
||Object Sub/Object codes beginning with 7530|
|Maintenance and Repair services||
||Object/Sub-Object codes beginning with 7331|
|Printing and copy services||
||Object/Sub-Object codes beginning with 7351|
||Object/Sub-Object codes beginning with 7380|
||Object/Sub-Object codes beginning with 7392|
|Professional, Independent Contractor, Outside Services, Speakers, Honoraiums.||
||Object/Sub-Object codes beginning with 7510. Documented expense reimbursements, such as travel, are not reportable and should be coded to object 7540.|
|Land improvements, building improvements/remodeling, new construction costs, planning/design/management costs, and building fixtures||
||Object/Sub-Object codes beginning with 7810 through 7829. Excluding 7810 10, land acquisition. These codes are used primarily by the Facility Services Department. The Object/Sub-Object code most often used by other departments is 7822 30, Bldg. Fixtures, Drapes, Carpet, etc.|
For information on employee expense reimbursements, see CMP 420-01, "Faculty and Staff Reimbursements".
For information on tax reporting for nonresident aliens, see CMP 425-01, "Payments to Non-Resident Aliens"
For information on tax reporting for independent contractors, see CMP 421-01, "Independent Contractors"
For additional assistance with 1099 tax reporting, accounting concerns and coding, please contact John Rabe in the Comptroller's Office.
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