CK99 - 2TIN-NOT
1099 Withholding
This common code is used to calculate 1099 withholding, which is typically related to a vendor failing to provide or correct a tax payer ID number (TIN) or SSN. In order to activate Withholding, remove the vendor's TIN and/or SSN. Then each transaction within the APOH system will withhold the percentage stated within this common code's 1st Numeric Value. Withholding will be calculated regardless of the record's 2nd Tin Not flag. However, once the TIN or SSN are updated, disbursements will no longer withhold even if the 2nd Tin Not box is still checked within PEUPPE's Vendor tab. Turn on or off the calculation of withholding with the absence of the SSN and/or TIN.
Note that any withholding will be automatically reported as Federal Withholding in Box 7 of the 1099-Misc Form for qualifying vendors who meet the threshold for reporting miscellaneous income. Once Withholding is turned off, withholding may continue to be documented manually by referencing the transaction with a "Relate To" code (FW) that will place the value of the given transaction into the Vendor's 1099-Misc form, Box 7, and be added to any system generated withholding that was calculated per this common code. The various boxes where vendor income is reported are controlled by a secondary common code with a Code Category / Value of CK99 / RelateXX; this common code links the box number, a box code for the various boxes that report miscellaneous income. Each code that represents a box will also be defined with RT01/xx or RT02/xx.
Code Category: CK99
Code Value: 2TIN-NOT
Short Description: Enter "ON" to activate this common code. Enter "OFF" to deactivate.
Medium Description: Used to describe the common code.
Long Description: Used to describe the common code.
Associated Numeric Values
1: Enter the percentage to withhold.
2-5: Reserved for future use.
Associated Codes
1: Enter Posting Code if different from AP transaction.
2: Enter Check Stock ID if different.
3: Enter the Object Code.
4: Enter the Accounts Payable Division.
5: Enter the Status.
Associated Descriptions
1: Enter the PEID for the entity to send the withholding to.
2-5: Reserved for future use.