25-A-007 2024 1099 Forms for Non-SMART Payments (Supersedes: 24-A-008)

INFORMATIONAL CIRCULAR NO: 25-A-007 Supersedes 24-A-008

DATE: December 16, 2024

SUBJECT: 2024 1099 Forms for Non-SMART Payments

APPROVAL: Sunni Zentner (original signature on file)

SUMMARY: Procedures for Filing Calendar Year 2024 Non-SMART Payment 1099 Returns

Any payment that occurs outside of the SMART system that is reportable to the IRS must be sent to the Office of Accounts and Reports for 1099 filing. These transactions include:

Locally administered interest payments of $10.00 or more that are reported on Form 1099-INT.
1. Interest paid from trust funds to clients of institutions with either the Department for Aging and Disability Services or the Department of Corrections.
Non-employee awards not paid directly out of SMART.

Requirements to report payments where the 1099 data was not recorded in SMART:

To report non-SMART payments for form 1099, the agency must confirm the supplier is in the SMART supplier table with the appropriate 1099 type and class.
1. If the supplier is not in the supplier table, the agency must add the supplier to SMART including the appropriate 1099 type and class
2. The supplier must also be in approved status
Complete the Excel template “PS_WTHD_TRAN_TBL_update_template” (link included at the bottom of this circular) for all non-SMART 1099 reportable payments.
1. Template Deadline: January 10, 2025

PS_WTHD_TRAN_TBL Update Template Instructions:

COLUMNS	DESCRIPTION
BUSINESS_UNIT	Agency Number (with leading zeros, 5 digits)
WTHD_ENTITY	IRS – Default, Do not change
WTHD_TYPE	1099M, 1099N, 1099I, 1099G (listed in supplier table)
WTHD_JUR_CD	FED, Default, Do not change
WTHD_CLASS	Listed in supplier table (with leading zeros, 2 digits)
WTHD_RULE	RULE0, Default, Do not change
SUPPLIER_SETID	SOKID, Default, Do not change
SUPPLIER_ID	Assigned by SMART (with leading zeros, 10 digits)
SUPPLIER_LOC	The supplier location with the 1099 withholding type and class needed for the transaction, usually 001, with leading zeros
ADDRESS_SEQ_NUM	1, Default, Do not change
PYMNT_ID	Blank, Default, Do not change
SUPPLIER FEIN or SSN	9 digit field, Must match the supplier record
PYMNT_DT	Date of payment, mm/dd/yyyy
WTHD_DECL_DATE	Same as PYMNT_DT
WTHD_BASIS_AMT	Taxable amount for 2024
DESCR100	Description, 100 character limit. No punctuation, no special characters.

Do not insert or delete columns or rows
Do not change the formatting
The fields in Yellow are required to be completed by the agency
Begin with line 2 (replacing the sample data):
1. Complete one line for each payment
2. Add lines as necessary for additional withholding types/classes
3. The gray columns are defaults and should not be changed
4. If 499 lines are not sufficient, copy line 500 down
5. When completed, attach the spreadsheet to a Kansas Service Desk ticket with the heading “non-SMART 1099”

Note: In Excel, if you have leading zeros in a text field like Business Unit or Supplier ID, precede the value with an apostrophe (‘04600 and ‘000123456)

Excel withholding template:

PS_WTHD_TRAN_TBL_update_template

Additional Resources:

Training guide for setting up suppliers for 1099 reporting and an account code guide:
1099 and Withholding Training Guide

IRS guide to each type of 1099, including instructions for each:
IRS Online Instructions for Forms

NR:SGZ:had

Attachment

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