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Criteria for Determining Payments Subject to 1099 Reporting
North Carolina State University is accountable to the Internal Revenue Service and the North Carolina Department of Revenue for payments made for SERVICES RENDERED by non-university employees. In order for the University to comply with this obligation, disbursements charged against certain expenditure object codes are reviewed annually. Expenditure object codes receiving this scrutiny are:
OBJECT CODE DESCRIPTION 1561 Workers Compensation (pymts to doctors, hospitals, ect.) 1591 Educational Assistance Protram-Taxable 1593 Unclassified Personnel Payments-Employee Recognition Awards 1594 Taxable Employee Expense Reimbursement 1911 Legal Fees 1912 Accounting/Audit Fees 1921 Profesional Consulting Fees- MIS 1922 Professional Consulting Fees- Engineer 1923 Professional Consulting Fees-Admin 1931 Hospitals 1932 Other 1950 Honorariums 1960 Expert Witness Fees 1970 Academic Instruction/Research Services 1990 Other Contracted Services 1991 Other Contracted Services 3510 Repairs Building/Grounds 3520 Repairs and Maintenance-Other Structures 3530 Repairs and Maintenance-Motor Vehicles 3540 Repairs and Maintenance-Computer Equipment 3550 Repairs and Maintenance-Other Equipment 3921 Service Agreements - Food Services 3922 Service Agreements - Laundry Servuces 3923 Service Agreements - Laboratory Services 3924 Service Agreements - Janitorial Services 3925 Service Agreements - Waste Removal Services 3926 Service Agreements - Security Services 3927 Service Agreements - Pest Control Services 3928 Service Agreements -Lawn and Grounds Services 3929 Service Agreements - Other 3990 Other Current Services 4110 Rental of Real Property - Land 4120 Rental of Real Property - Building 4130 Rental of Real Property - Other Facilities 4200 Rental of EDP Equipment 4310 Rental of Other Equipment-Motor Vehicles 4320 Rental of Other Equipment-Communications 4330 Rental of Other Equipment-General Office 4340 Rental of Other Equipment-Furniture & Furnishings 4350 Rental of Other Equipment-Other 4991 Royalties 5720 Land - Legal and Recording Fees 5730 Land - Appraisal Fees 5811 Buildings-Acquition Costs 5812 Buildings - Legal and Recording Fees 5813 Buildings - Appraisal Fees 5821 Buildings - Planning Expenses 5822 Buildings - Design Contracts 5823 Buildings - General Contracts 5824 Buildings - Electrical Contracts 5825 Buildings - Plumbing Contracts 5826 Buildings - Masonry Contracts 5827 Buildings - Roofing Contracts 5828 Buildings - Erosion Control Contracts 5829 Buildings - Mechanical Contracts 5830 Buildings - Landscaping Contracts 5831 Buildings - Grading, Filling and Clearing Contracts 5832 Buildings - Asbestos Removal Contracts 5833 Buildings - HVAC Contracts 5834 Buildings - Refrigeration Contracts 5835 Buildings - Elevator Contracts 5836 Buildings - Sprinkler Contracts 5837 Buildings - Telecommunication Contracts 5840 Buildings-Miscellaneous Costs 5881 Buildings - Testing and Boring 5882 Buildings - Construction Site Survey 5883 Buildings - Project Inspection Fees 5884 Buildings - Legal Fees and Advertising 5911 Other Structures - Planning Expenses 5912 Other Structures - Design Contracts 5913 Other Structures - General Contracts 5914 Other Structures - Electrical Contracts 5915 Other Structures - Plumbing Contracts 5916 Other Structures - Masonry Contracts 5917 Other Structures - Roofing Contracts 5918 Other Structures - Erosion Control Contracts 5919 Other Structures - Mechanical Contracts 5920 Other Structures - Landscaping Contracts 5921 Other Structures - Grading, Filling and Clearing Contracts 5922 Other Structures - Asbestos Removal Contracts 5923 Other Structures - HVAC Contracts 5924 Other Structures - Refrigeration Contracts 5925 Other Structures - Elevator Contracts 5926 Other Structures - Sprinkler Contracts 5927 Other Structures - Testing and Boring 5940 Other Sructures - Miscellaneous Costs 5981 Other Structures - Legal Fees and Advertising 5982 Other Structures - Construction Site Survey 5983 Other Structures - Project Inspection Fees 6980 SubGrant-Contract Payable 6990 Other Aids & Grants Disbursements may be charged against any expenditure object code listed above and still be excluded from 1099 reporting if any of the following conditions exist: 1- Payments made to a corporation (Except Health Care Providers) 2- Payments to Non-Profit activities, i.e., governmental agencies. 3- Payments made to real estate agents. 4- Payments made for the purchase of tangible merchandise Frequently, invoices for services rendered include cost of materials necessary in providing the service. Generally, such expenditures are chargeable to object codes 35XX. Under these circumstances, the University has followed the practice of including the total amount of the invoice in its 1099 reporting process.