Missing 1099 State Codes

[#1]

Our FI Dept is electronically submitting 1099 to the IRS. The electronic file is missing several State Codes. For example, some of the CA state codes are missing. Most of the CA vendors' codes are showing up on the efile, but some are not. Can someone please tell me how to address this issue. I have looked in the IMG under jurisdiction codes, but have not been able to find a solution.

Thank you in advance for your assistance.

[Former Member]

Angelica,

this is probably caused by the state reporting amounts that are configured in the extended withholding tax tables.

The path may vary based on the release you are on, but for example in ECC 5.0 (ERP 2004), it is in the IMG under: 'Financial Accounting/ Financial Accounting Global Settings/ Withholding Tax/ Extended Withholding Tax/ Generic Withholding Tax Reporting/Minimum Amounts/Define mimimum amounts for 1099 reporting'.

Each state has it's own minimum amount for reporting. If a vendor in that state has reportable items that meet the IRS (Federal) minimum, but are less than the amount defined for that state, the state code (e.g. 06 for Californina) is not included on that record in the 1099 file. So, you can have 2 vendors in the same state, but one has the numeric state code in the file and one doesn't, due to the amounts.