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Foundation-Funded Employee Assistance Payments and When a Vendor 1099 Is Required

June 16, 2026
June 16, 2026

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Q. We have a fund set up through the Foundation where they have money to use for employees who cannot pay their bills, so we pay the vendor on behalf of the employee for rent payments, car loans, bills, etc. When we set up the vendor payment directly, are we setting them up as regular vendors that would still be 1099 reportable, or would it be exempt since we use this fund for employees? Do they need to have a policy set up about the fund, or does it have to be set up differently to not report…

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