(1) Except as provided in subsection (2), and except for payments to which subdivisions (a) and (c) of Section 18639 apply, every individual, partnership, bank, corporation, including a nonprofit corporation or organization, joint stock company or association, insurance company, or Massachusetts or business trust, engaged in a trade or business in this State and making payment in the course of such trade or business to another person, including lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of this State or of any political subdivision of this State, or any city organized under a freeholder's charter, or any political body not a subdivision or agency of the State, shall make a return on forms prescribed by the Franchise Tax Board for each calendar year, with respect to wages, salaries, interest, rents, royalties, and other fixed or determinable income paid, credited or distributed. Such payments are required to be reported if the total amounts paid to a single person are $1,500 or more, and in the case of a married individual are $3,000 or more. Payments of wages, salaries and other compensation for personal services rendered in this State, and payments of rents or royalties on account of property located in this State must be reported irrespective of the residence or address of the payee. Payments of interest and payments of income on account of services performed, or property located outside this State need be reported only if the payee is a resident of this State. If the payee's residence is unknown to the payor, such payments shall be reported if the payee's last known address was in this State. If the marital status of the individual is unknown, report all such payments of $1,500 or more. Payments made to the officers of a corporation must be reported. Payments in the case of annuities with an annuity starting date before January 1, 1968, should be reported in an amount equal to 3 percent of the aggregate premiums or consideration paid for the annuity (whether or not paid during the taxable year), until the aggregate amount paid to and not required to be included by the annuitant in his gross income, had the law been in effect continuously from and after the date at which payments under such annuity were first received, equals the aggregate premiums or consideration paid for such annuity; thereafter the entire amount of the annuity payments shall be reported. Payments in the case of annuities with an annuity after January 1, 1968, should be reported except to the extent that they are considered to represent a reduction or return of premiums or other consideration paid. The part of each annuity payment which is excludable from gross income is determined by the ratio which the investment in the contract bears to the expected return under the contract. In the case of annuities with an annuity starting date on and after January 1, 1968, in lieu of the return required by this subsection, a duplicate copy of the Federal return may be filed with the Franchise Tax Board.

(2) The following payments need not be reported regardless of the amount paid: