35 Miss. Admin. Code Pt. III, Subpt. 11, Ch. 01 — Information at Source

100 Every individual, partnership, corporation, joint stock company or association, insurance
company and any other person, including all exempt corporations not subject to tax under
the provisions of the act, making payment to another person of interest , rent, salaries,
wages, premiums, annuities, compensation , remunerations, emoluments, patronage
dividends or other fixed or determinable gains, profits or income must complete an
information return, Form 1099, for each payee in instances where such payments to each
recipient:

# 1.

Exceeds $3,000 annually and embraces salaries, fees, commissions, prizes, bonuses
and other income from personal services not otherwise reported as required by
Code Section 27-7-311 on Form W-2, or

# 2.

Exceeds $600 annually and embraces dividends, interest, rents, royalties, annuities,
pensions, premiums, corporate liquidations and other fixed income.
101 Such returns of information shall be completed with respect to calendar year payments ,
notwithstanding that the payor may report his income on a fiscal year basis, and shall cover
total amounts paid for which an information return is required - not just the amount which
is in excess of the sums specified in subparagraphs (a) and (b) above.
102 Annual information returns, Form 1099, shall be forwarded to the Commissioner, along
with annual return, Form 62-440, completed by the payor certifying to the accuracy of the
information returns attached, not later than March 15 of the following year.
103 Amounts paid with respect to life insurance, endowment or annuity contracts which are to
be included in gross income of the payee are required to be reported on information returns.
Payments on such policies which are surrendered before maturity, or on lapsed policies and
gifts need not be reported. Amounts of income which would constitute constructive receipt
to the payee and be deemed to have been paid should also be reported. Fees for
professional services paid to attorneys, physicians, and members of other professions come
within the meaning of the term "fixed or determinable gains, profits and income" and are
required to be reported on information returns . Amounts distributed or made available
under employee's trusts to a beneficiary in any taxable year, and which have been
contributed to the trust by the employer or represent earnings of the fund must be reported
by the trustee.
104 The information return, Form 1099, must clearly indicate the name and address to whom
and by whom reported payments are made. In the case of payments to individuals , the
social security number of such payee must be shown on the return. The federal
identification number or the social security number of the payor is required on the return.
105 (Reserved)
106 (Reserved)
Chapter 02 Withholding Wages Defined
100 In General.
1. The term "wages" means all remuneration for services performed by an employee
for his employer unless specifically excepted under Code Section 27-7-303(j).
2. The name by which the remuneration for services is designated is immaterial. Thus,
salaries, fees, bonuses, commissions on sales or on insurance premiums, pensions,
and retired pay are wages within the meaning of the statute if paid as compensation
for services performed by the employee for his employer.

# 3.

The basis upon which the remuneration is paid is immaterial in determining
whether the remuneration constitutes wages. Thus, it may be paid on the basis of
piece work, or a percentage of profits; and may be paid hourly, daily, weekly,
monthly, or annually.

# 4.

Generally the medium in which the remuneration is paid is also immaterial. It may
be paid in cash or in something other than cash, as for example, stocks, bonds, or
other forms of property. If services are paid for in a medium other than cash, the
fair market value of the thing taken in payment is the amount to be included as
wages. If the services were rendered at a stipulated price, in the absence of evidence
to the contrary, such price will be presumed to be the fair value of the remuneration
received. If a corporation transfers to its employees its own stock as remuneration
for services rendered by the employee, the amount of such remuneration is the fair
market value of the stock at the time of transfer.

# 5.

Remuneration for services, unless such remuneration is specifically excepted by the
statute, constitutes wages even though at the time paid the relationship of employer
and employee no longer exists between the person in whose employ the services
were performed and the individual who performed them.
101 Certain specific items.
1. Pensions and retirement pay. In general, pensions and retired pay are wages subject
to withholding. However, no withholding is required with respect to amounts paid
to an employee upon retirement which are not taxable as annuities under the
provisions of Section 27 -7-15 nor upon annuities, the income from which is
specifically exempt by statute, or regulations with respect thereto. So -called
pensions awarded by one to whom no services have been rendered are mere gifts or
gratuities and do not constitute wages. Amounts received as retirement pay for
service in the Armed Forces of the United States are not subject to withholding.
Amounts received as disability benefits by veterans of the armed forces are not
subject to withholding.
2. Traveling and other expenses. Amounts paid specifically - either as advances or
reimbursements - for traveling or other bona fide ordinary and necessary expenses
incurred or reasonably expected to be incurred in the business of the employer are
not wages and are not subject to withholding. Traveling and other reimbursed
expenses must be identified either by making a separate payment or by specifically
indicating the separate amounts where both wages and expense allowances are
combined in a single payment.
3. Vacation allowance. Amounts of so -called "vacation allowances" paid to an
employee constitutes wages. Thus, the salary of an employee on vacation, paid
notwithstanding his absence from work, constitutes wages subject to withholding.
4. Dismissal payments. Any payments made by an employer to an employee on
account of dismissal, that is, involuntary separation from the service of the
employer, constitute wages subject to withholding regardless of whether the
employer is legally bound by contract, statute, or otherwise to make such payments.
5. Deductions by employer from remuneration of an employee. Any amount deducted
by an employer from the remuneration of a employee is considered to be a part of
the employee's remuneration and is considered to be paid to the employee as
remuneration at the time that the deduction is made.

# 6.

Payment by an employer of employee's tax, or employee's contribution under a
state law. The term "wages" includes the amount paid by an employer on behalf of
an employee (without deduction from the remuneration of, or other reimbursement
from, the employee) on account of any payment required for an employee under a
state unemployment compensation law, or on account of any tax imposed upon the
employee by any taxing authority, including federal and state income taxes.

# 7.

Value of meals and lodging. The value of any meals or lodging furnished to an
employee by his employer is not subject to withholding if the value of the meals or
lodging is excludable from the gross income of the employee.

# 8.

Facilities or privileges. Ordinarily, facilities or privileges (such as entertainment,
medical services, or so -called "courtesy" discounts on purchases), furnished or
offered by an employer to his employees generally , are not considered as wages
subject to withholding if such facilities or privileges are of relatively small value
and are offered or furnished by the employer merely as a means of promoting the
health, good will, contentment, or efficiency of his employees.

# 9.

Tips or gratuities. Tips or gratuities paid directly to an employee by a customer of
an employer are subject to withholding.

# 10.

Fees paid a public official.
a. Authorized fees paid to public officials such as notaries public, clerks of
court, sheriffs, etc. for services rendered in the performances of their official
duties are excepted from wages and hence are not subject to withholding.
However, salaries paid such officials of government, or by a government, or
by a government agency or instrumentality, are subject to withholding.
b. Amounts paid to precinct workers for services performed at election booths
in state, county, and municipal elections and fees paid to jurors and
witnesses are in the nature of fees paid to public officials and therefore are
not subject to withholding.
c. Supplemental wage payments . If supplemental wages, such as bonuses,
commissions, or overtime, are paid at the same time as regular wages, the
income tax to be withheld should be determined as if the aggregate of the
supplemental and regular wages were a single wage payment for the regular
payroll period. If supplemental wages are paid at a different time, the
employer may determine the tax to be withheld by aggregating the
supplemental wages either with the regular wages for the current payroll
period or with the regular wages for the last preceding payroll period within
the same calendar year. However, if income tax has been withheld from the
employee's regular wages, the employer may withhold from the
supplemental wages as if no exemption had been claimed.
102 (Reserved)
103 (Reserved)