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Stephen G.
Stephen G., Sr Financial Expert
Category: Finance
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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We are an online marketplace in California where our vendors

Customer Question

Hello,We are an online marketplace in California where our vendors are service providers.Each year, we use a software (Payable.com) to issue their 1099. In the 1099, Box 17 is a field asking for "STATE / PAYER'S STATE NUMBER". Is it enough if we fill out "CA" or do we need a "STATE NUMBER"?Thank you!
Submitted: 1 year ago.
Category: Finance
Expert:  Stephen G. replied 1 year ago.

Are you talking about issuing 1099s to the Vendor's customers or are you talking about issuing 1099s to the Vendors?

If the Payer's State Copies are furnished to the Vendor's State, ie. if you are preparing 1099s to be issued by the Vendors, then the Vendor's (issuer's) State Number should be indicated in that box.

If you aren't sending a copy of the information furnished to the IRS to the State, then you don't need to fill in that box.

Expert:  Stephen G. replied 1 year ago.

PS In some state's the state no is based upon the federal id #.

For example if the Company's EIN was 04-2732391, the state number would be###-##-####/p>

Expert:  Stephen G. replied 1 year ago.

Do you have any additional follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.

Customer: replied 1 year ago.
Hi Stephen,
Thank you for your message.
The 1099s are to be issued to our vendors not to their customers.
Do we need a STATE NUMBER then?
Our business is operating in California but is incorporated in Delaware.
Thank you!
Expert:  Stephen G. replied 1 year ago.

If you are not sending copies to the state, then you don't need a state number.

You realize that you don't send 1099s to corporations, correct?

I take it you don't have any employees?

If you are a corporation, aren't you employees of your corporation?

The state number is ***** same number you use for your payroll filings to California.

Customer: replied 1 year ago.
We are a C-Corp and we have 7 employees. We have a payroll processor doing our payroll. The vendors are not employees and therefore, we handle everything ourselves for them (i.e. for their 1099s).Isn't it per default that we have to file the 1099s with the state?Thank you!
Expert:  Stephen G. replied 1 year ago.

If you have employees in CA, then you have a state number.

That's what you use on the 1099s that you send to your vendors that are not corporations.

Just look on your payroll returns or a W2 or whatever payroll form you have related to CA, and you'll find your CA number to use on the 1099s and yes you should send copies to CA.

I'm kind of at a loss as to what you are having a problem with?

Expert:  Stephen G. replied 1 year ago.

Just checking in. I see you have had a chance to read my response to your question.

Do you have any follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.