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This article documents how to setup and process 1099s for vendors. 

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ERP currently provides 1099-MISC (Independent contractor income), 1099-DIV (Dividends income) and 1099-INT (Interest income).

1099 Box Setup

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1. Navigate to Master > Payables > Vendor 1099 Box.
   
   
2. Click on the 1099 Box ID ellipsis button.
   
   
   
   
   
   
3. Click on Retrieve button. 
   
   
   
   
   
   
4. The system will display a list of existing 1099 box Type IDs. Select the type of income that is appropriate for the vendor.
   
   
   
   Click Add.
   Click Save.
   Click Close.
   
   
   
   

From time to time, the IRS will add new box for new type of income. That means that new developments will be needed to add the new box to the form. To 1099 form(s) and you will need to add new 1099 box here:

1. Type in new 1099 Box ID > Specify 1099 box number > Set up Comment/Description for the new 1099 type ID.
   
   
   
   
   
   
2. Click Add.
   
   
3. Click Save.
   
   
4. Click Close.
   
   
   

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1. Navigate to Master > Payables > Vendor 1099 Type
   
   For ex.: add 1099-R 
   
   
   
   
   
   
2. Click on the Add button.
   
   
3. Type in new 1099 Type ID.
   
   
4. Type in new 1099 Type. This value is assigned by the IRS.
   
   
5. Type in new Comment/Description.
   
   
6. Click Save.
   
   

7. Click Close.
   
   

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1. Navigate to Master > Payables > Vendor.

   
   
2. Select your Vendor > Click OK.
   
   
3. Check the 1099 Vendor check box.
   
   
4. Check the Payee's Account Number (1099) -
   . If you have multiple accounts for a recipient for whom you are filing more than one Form 1099 (INT, DIV, MISC). 
   . The account number is also required if you check the “FATCA filing requirement” box (Foreign Account Tax Compliance Act). 
   . Additionally, the IRS encourages you to designate an account number for all 1099 forms that you file.
   . When this box is checked. The vendor's short name will be printed in the "Account number" box on the 1099 forms.
   
   
5. Select the Default 1099 Type - MISC, DIV or INT. Even though this 1099 type is set to default, it can be changed at the vendor's voucher level.Image Removed
   
   
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6. Select the Default 1099 Box - default 1099 type of income for the vendor. Again, this 1099 box is set to default, but it can always be changed at the vendor's voucher level.
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7. Click Save
   
   
8. Click Close

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The 1099 Type and 1099 Box can be changed by clicking inside the selection area, then click on the dropdown drop down list, a list of options will be displayed.

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1. The report can be run in Summary or Detail mode. In detail mode, it will show all vouchers details transactions. One line per voucher.
   
   
2. Select which 1099 type to print or you can select All 1099 Form Types.
   
   
   
   
   
   
3. You have to select a company because this report is running by company. Each company has its own unique Federal Identification Number. 
   
   
   
   
   
   

4.  Select a Division or select All.

    

5. Select a Vendor Type or select All.

   
   

6. Select a Vendor or select All.

   
   

7. If you want the vendor address to display on the report, please check this check the "Vendor Address Display on Report" box.

   
   

8. By default, the report will bypass vouchers that are less than $600.00. If you want to include vouchers that are less than $600.00, please check this check the "Bypass $600.00 Minimum" box.

   
   

   
   

   
   

9. Select a Start Pay Date and End Pay Date, then click Show Report button.

   
   

   
   

   
   

    

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When your 1099 report is all in balance. You can run your 1099 forms.

Navigate to Payables > Reports > 1099 Forms.

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1. Select 1099 Type - Div, Int or Misc.
   
   
   
   
   
   
2. Select Forms that you want to print by check or un-check the boxes. You can print all forms or just the forms that you need.
   
   . Copy A = Internal Revenue Service Center.
   
   . Copy B = Recipient.
   
   . Copy C = Payer.
   
   . Copy 1 = State Tax Department.
   
   . Copy 2 = to be filed with recipient's state income tax return, when required.
   
   
   
   
   
   
3. Select the company that you want to process 1099 forms.
   
   
4. If you are set up to have multiple divisions as separate entities under one company, the company box will be grey out and the system will prompt for a division number.
   
   
5. Fill in the name of the contact person in case there is any issues or questions for the 1099 forms from the IRS.
   
   
6. Fill in the contact person's phone number.
   
   
7. Fill in the contact person's email address.
   
   
8. A valid Federal Identification Number is required.
   
   
9. You don't have to have a State Identification Number to run the 1099 forms.
   
   
10. Check on the Bypass $600.00 Minimum if you want to include vouchers that are less than $600.00.
    
    
11. Select the Start Pay Date and End Pay Date
    
    
12. Click on the Show Report.
    
    
13. If everything is correct, you can print these forms. These forms can be printed as many time as you need.
    
    
    
    
    
    
    
    

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1. Select 1099 Type
   
   
2. Select Payment Year.
   
   
3. Select Company.
   
   
4. If you are set up to have multiple divisions as separate entities under one company, the company box will be grey out and the system will prompt for a division number.
   
   
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5. Provide a valid Federal Identification Number.
   
   
6. Transmitter Control Code is a required number. This number is an assigned number by the IRS.
   
   
7. Enter the Transmitter Name.
   
   
8. Enter the name of the Contact person.
   
   
9. Enter the phone number of the Contact person.
   
   
10. Enter the email address of the Contact person.
    
    
11. If you need to create an electronic file for Federal, do not check this box. If you check this box, the system will create records K for the state and the federal will reject the file.
    If you need to create an electronic file for the state, then please check this box.
    
    
12. Check the box for Bypass $600.00 Minimum if you want to include vouchers that are less than $600.00.
    
    
13. Click on Retrieve button and the data will be processed and displayed onto your screen.
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14. Proofing the data within the 1099 electronic file - make Click on the drop down of the "Selection to Proof".  Select the the record type you want to proof.  Make sure that all the information for contained within all records type are correct.
    
    . Record T - Transmitter record
    
    . Record A - Payer record.
    
    . Record B - Payee record.
    
    . Record C - End of Payee record.
    
    . Record K - State Totals record.
    
    . Record F - End of Transmitter record.
    
    
    
    
    
    
    
15. Click on the Errors tab - there should not be any errors generated.
    Image RemovedIf there is any error, it needs to be reviewed and corrected, then you can re-run the electronic file extraction again.
    
    
    
16. Once everything has been checked and verified, you can click on the Save button and save it to a place where you can browse into later to submit the file to the IRS website.

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