Kansas Department of Administration

01-a-020 - Expenditure Subobject Codes for reporting 1099 Information (April 25, 2001)

Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration

INFORMATIONAL CIRCULAR NO. 01-A-020
DATE: April 25, 2001
SUBJECT: Expenditure Subobject Codes for reporting 1099 Information
EFFECTIVE DATE: Immediately
A & R CONTACT: Financial Integrity Team
Pam Karns (785) 296-2660 (Pam.Karns@da.state.ks.us)
Mike Lovich (785) 296-2131 (Mike.Lovich@da.state.ks.us)
APPROVAL: Approved by Dale Brunton
SUMMARY: Establishment of additional expenditures sub-object codes for 1099 reporting of gross proceeds payments to attorneys for claims


Beginning in calendar year 1998, the Internal Revenue Service (IRS) required workers compensation claims paid to an attorney, or the recipient and the attorney jointly, be reported on form 1099. Expenditure subobject code 5241 was established to report these payments. The IRS now requires all settlement payments made to the attorney or to the recipient and attorney jointly be reported as gross proceeds on form 1099. In order to report these payments, claims currently being paid were reviewed to detect the need for new expenditure subobject codes. New expenditure subobject codes currently required are being established under the category of "Claims" as follows:

5271 Gross Proceeds Payments to Attorneys for Civil Rights Conciliation Claims - 1099 Reportable
5291 Gross Proceeds Payments to Attorneys for Other Claims - 1099 Reportable

These revisions will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No 7,002) on the Division of Accounts and Reports web site http://www.da.ks.gov/ar/ppm/ppm01001.htm. 

If a new expenditure sub-object code is needed in another category in order to capture 1099 reportable gross proceeds payments to attorneys, please contact Pam Karns at (785) 296-2660.

DB:pk:mp 

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