Accounts Payable

Effective Date: 09/21/06

Policy Statement 8: 1099 Reporting


East Carolina University is required by the IRS to report payments to vendors and individuals if amount paid is $600 or more for a calendar year in the following categories:

  1. Rents – Payments of $600 for all types of rents, such as real estate rentals paid for office space (unless paid to a real estate agent), and machine rentals. If the machine rental is part of a contract that includes both the use of the machine and operator, the rental should be prorated between the rent of the machine and the operators charge.

  2. Royalties – Gross royalty payments of $10 or more.

  3. Other Income - Other income of $600 or more for punitive damages, prizes and awards that are not for services performed, awards to students, participants, etc. Employee awards and prizes are not included and are reported by the Payroll office on your W-2 form.

  4. Medical and Healthcare payments – Payments of $600 or more made to each physician or other supplier or provider of medical or health care services.

  5. Non-employee Compensation - Compensation of $600 or more include fees, commissions, prizes and awards for services performed as a non-employee, other forms of compensation for services performed for your business by an individual who is not your employee.

  6. Gross Proceeds Paid to an Attorney – Report gross proceeds paid to an Attorney in connection for legal services.