Accounts Payable Advisory No. 23

Accounts Payable Advisory
Office of Operations
Bureau of State Expenditures
Advisory Name
Properly Coding Vouchers for Withholding
Date Issued
Date Last Updated


Proper Coding of State Payments Reportable to the Internal Revenue Service


Guide to Financial Operations (GFO), Chapter XII, Section 5.K - Federally Reportable Payments


Online Business Unit

OSC has identified multiple vendors whose payments from online Business Units should not have been coded as reportable to the IRS. As a reminder, when online Business Units process any voucher for payments that are not subject to 1099 reporting, accounts payable staff should save the voucher, go to the Invoice tab, click the ”Withholding” link, and then un-check the “Withholding Applicable” field.

Bulkload Business Unit

OSC has also identified multiple vendors whose payments from bulkload Business Units had the wrong “Withholding Codes.”OSC requests all bulkload Business Units review their procedures to ensure appropriate “Withloading Codes” are submitted.

All Business Units

If a Business Unit processed a voucher with incorrect withholding information, please contact the Federal Reporting Unit in the State Comptroller’s Office at [email protected] to request a correction. For complete information on processing online and bulkload vouchers that are and are not subject to 1099 reporting, please see the GFO, Chapter XII Section 5.K - Federally Reportable Payments.