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Glenn Hegar  ·  Texas Comptroller of Public Accounts

USAS Procedures for 1099 Reporting for Calendar Year 2018

FPP E.001

USAS 1099 Overrides, Warnings and Fatal Errors

Overriding the 1099 indicator

USAS infers the 1099 indicator from the D1Ø profile if the T-code and the TINS ownership type are flagged as 1099 reportable. An agency or institution may override the inferred 1099 indicator by entering the 1099 indicator value directly on the transaction. You can enter a 1099 indicator on transactions for vendors that are not normally reported in order to make the specific transaction reportable. In addition, transactions normally reportable can be flagged as not reportable by entering an N in the transaction’s 1099 REPORTABLE INDICATOR field.

Agencies or institutions submitting transactions via input records may override the 1099 indicator by entering a 0 through 9 or N in position 166 of the transaction detail record. Otherwise, a blank space should be entered. Any other value (including null characters) will cause an error.

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CAPPS agencies can override the 1099 indicator sent to USAS by checking the OVERRIDE USAS 1099 WITHHOLDING INDICATOR on the Supplier’s Identifying Information tab and using an account with a 1099 Account Attribute set with the override value. This is used when the 1099 indicator is always overridden for that Supplier and Account combination.

Warnings

When a warning is received, the transaction will post if otherwise error-free. These warnings are to prompt the user to verify the entered 1099 indicator and, if a mistake was made, to change or omit the entered 1099 indicator.

The following warnings regarding the 1099 indicator can be received:

WK1 A 1099 indicator was entered on a transaction that contains an ownership code of a vendor who is normally not reportable (such as a corporation).
WK2 The 1099 indicator entered on a transaction is not the normal default value for the entered comptroller object.
WK3 A 1099 indicator was entered on a transaction that has a comptroller object that is not normally reportable.
WR1 The 1099 indicator must be entered when using this specific comptroller object and cannot be inferred. The default value will be a warning message. This error can be changed to a fatal error or be suppressed by overriding the error severity by requesting a change to the agency DØ2 profile (data-related errors, position 16).
WR3 Allowable values for the IRS indicator 1 through 9.
WRB The 1099 validation requires a lookup to the Texas payee table in TINS using the vendor number and the vendor suffix. This warning message is issued when the vendor number and suffix are not found in the Texas payee table.

Fatal errors

When one of these messages is received, the transaction did not post. The following fatal errors regarding the 1099 indicator can be received:

ERA A vendor number is required on the transaction for 1099 indicator validation.
ERB The entered vendor number is not valid.
ERC The 1099 indicator must be entered when using this T-code and cannot be inferred.
ER1 Same as WR1 on Page 15, except the DØ2 profile was requested and changed to fatal on the DATA RELATED ERRORS field (position 16).
ER2 This T-code is not 1099-reportable.
ER3 An entered 1099 indicator must be 0 through 9 or N.

Note: When entering a 1099 indicator on the online transaction screen, the indicator remains in the field when the F6 key is pressed. If this 1099 indicator does not apply to the subsequent transaction, the 1099 indicator should be “blanked out” to allow the system to default the 1099 indicator based on the D1Ø profile.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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