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5.6.1 INTERNAL REVENUE SERVICES REQUIREMENTS The Child Care Scholarship Program complies with Internal Revenue Services (IRS) regulations and sends an IRS Form 1099, for payments made to a provider who participates in the Child Care Scholarship Program. Form 1099 will be mailed by January 31st of each year. A Form 1099 is sent to all child care providers, except corporations, who are paid $600 or more by the State during the tax year. A provider should contact the IRS for more information. All providers, including FFN providers, are considered independent business owners and are not considered an employee of the State of South Carolina. Therefore, it is the responsibility of the provider to pay applicable taxes on all money earned.

5.6.2 PROVIDER PASSWORDS A provider is encouraged to establish a password to be assigned to their provider file. This ensures a level of security that will prevent an individual, other than the actual provider, to call and obtain information about the provider’s information. In order to create a password, the following actions are taken: o Verify provider’s FEIN or SSN in order to access the file. o Verify the provider’s mailing address. o Have the provider establish a six-character password upon verification of the above information. The password can be either letters or numbers, or a combination of the two. The provider should refrain from using symbols or punctuations marks. NOTE: The password is NOT case sensitive. Advise the provider that if they lose or forget the password or wish to change the password at any time, they will have to supply a copy of their driver’s license and along with a request to change their password via mail or fax before the password can be changed and before further information can be given. NOTE: Advise the provider NOT to share the password with anyone. Proceed with the call.