Setting Up Vendors to Print 1099 Forms, Tracking Calendar Disbursements, and Creating Magnetic Media

Set Up/File Maintenance:

Accounts Payable > File Maintenance > Vendors – After verifying that the vendor name and address are correct, there are 4 fields that control the printing of 1099 forms.

“1099 Box No” specifies in which box on the 1099 form to print the vendor’s annual balance. For most 1099 vendors, the 1099 box number is 7, which is "Non Employee Compensations”.

“Tax ID No” holds the vendor’s Federal Tax Identification Number.

“1099 Name” is used where it is required to print the Sole Proprietor’s name, in addition to the Vendor’s name on the 1099 form.

“1099 Type” is used to specify what type of 1099 form is to be used for this Vendor. Valid choices are: 1099-MISC (MISC) or 1099-INT (INT).

Example Vendor File:

1099 Audit Report:

Accounts Payable > Vendor Reports > 1099 Audit Report.

This report displays information that will appear on the 1099 forms. It is printed for a single Calendar Year and defaults to the current IRS Minimum Amount Disbursed of $600.00. Printing the 1099 audit report will allow you to see who is eligible to receive a 1099 form based on the minimum amount disbursed and for a particular calendar year. Only vendors that have a non-zero “1099 Box No” will appear on this report. You may choose to run this for only those Vendors set to print on a 1099-MISC form, 1099-INT form, or all Vendors, using the radio button. Remember the “1099 Box No,” which is usually set to “7 for Non Employee Compensation,” is maintained in the vendor master file. This report will display warning messages if the tax identification numbers are missing or if an invalid 1099 box number was entered in the vendor master file.

The 1099 audit report can be used to track designated vendors and their calendar year disbursements.

1099 Disbursements:

There may be situations where vendor disbursements need to be changed to correctly reflect the true 1099 calendar disbursements.

This is an example:

A hotel paid a vendor a total of $70,217.00. When they ran the 1099 audit report they saw that this would be the amount that would be printed on the vendors 1099 form.

The hotel only wants $70,000 to appear on the 1099 as the $217 was for expenses.

You can edit the vendor’s 1099 disbursements from the main Accounts Payable menu by choosing

Utilities > Review Vendor 1099 Info.

Choosing Review Vendor 1099 Info will bring you to the following screen:

Enter the appropriate “Calendar Year” and “Vendor Number”, and then press F2. If you leave the vendor number blank the system will display a list of vendors where you can choose a vendor one at a time. Here is an example of the vendor list.

Use the mouse or arrow key to select one vendor at a time. This will display the vendor’s 1099 information. The monthly disbursements can be edited and an annual total is kept at the bottom. This total is the amount that will print on the vendor’s 1099 form for the specified year.

After making the necessary changes press F2 to save these changes. You can now search for another vendor or escape back to the Data Plus main menu.

To verify the correct 1099 calendar disbursements are recorded in Data Plus, go to Vendor Reports and print the 1099 Audit Report.

The 1099 Audit Report will show the balances that will appear on the 1099 form.

Printing 1099 Forms:

The 1099 form program is designed to print on pre-printed 1099 forms. This can be done on dot matrix or laser printers. The format for the 1099 forms are defined by the government. The number of copies of each to be printed varies by State. Some states require additional copies for city and local taxes. Each customer should know how many copies they will need. The number will vary between 3 and 6 copies.

For example, if you need to print 3 copies of each 1099, it would make sense to print all of your Copy A’s, then Copy B’s, and then your Copy C’s.

Check with your office supply store or with the IRS to order the forms that are compatible with your specific printer.

Data Plus supports laser printer and continuous (matrix or impact) printer formats. Data Plus also support two 1099 formats: 1099-MISC (2-up) and 1099-INT (3-up).

Printing 1099 forms is done thru Accounts Payable > Vendor Reports > 1099 Forms – the following screen appears.

You can run the 1099 print task as many times as you would like.

If you encounter any errors or printing issues please contact Data Plus.

Creating a 1099 Magnetic Media File:

This task creates the ASCII file for the annual 1099 Magnetic Media reporting. The IRS supports this file placed on a 3.5" DOS formatted floppy disk.

The data for each vendor is taken from the Vendor Records. You must make sure that this data is correct prior to running this task. As well, information is retrieved from the company record and in multi-property systems it is also taken from the owners records. These records must be accurate as well. For the Vendor/Company/Owner records it is critical that the Name, Address, Phone Number, and Tax-id numbers are correctly entered. It is also critical in multi-property systems for each property to have the correct Federal tax-id for its owner.

It is recommended that the 1099 Audit Report be run prior to creating the Magnetic Media file to verify that there are no errors or warnings. Missing information may cause a vendor to not be selected for the Magnetic Media file.

The IRS STRONGLY RECOMMENDS that first time Magnetic Media filers submit a test file for verification. To create a test file run the procedure as usual with the test file flag set to yes.

You may access this function in Vendor Reports > 1099 Magnetic Media. Upon selecting this button the following screen will appear:

You must enter in the following fields.

Calendar Year

Enter the year for which 1099’s are to be printed.

Run as a Test File? (Yes/No)

If you wish to run this as a test file for the IRS, enter YES, otherwise if you would like to generate a valid file to submit to the IRS for reporting purposes, leave as No.

Minimum Misc amount

This provides a threshold on the annual disbursement amount for the vendors. Only vendors who reach this limit will have a 1099-INT record included in the magnetic media file. The Internal Revenue Service requires that this criterion be at least this amount.

Include 1099 Type

If you wish this magnetic media file to include 1099-MISC records, enter a check mark in this box.

Minimum INT amount

This provides a threshold on the annual disbursement amount for the vendors. Only vendors who reach this limit will have a 1099-INT record included in the magnetic media file. The Internal Revenue Service requires that this criterion be at least this amount.

Include 1099 Type

If you wish this magnetic media file to include 1099-INT records, enter a check mark in this box.

Payers Federal ID Number/Property ID (multi property only)

Enter this company’s Federal ID number (or Property ID for multi-property installations) for printing 1099 forms; this number appears on all of the 1099’s.

Transmitter Control Code

Enter in your Transmitter Control Code that was assigned to you from the IRS.

Directory to Place File

Enter in the path where you would like this file to be exported. For example, if you would like it to be written to your floppy disk, enter A:/.

Transmitter Name

Enter in the name of the Transmitter, required by the IRS.

Contact Name

Enter in your Contact name.

Contact Phone

Enter in your contact phone, with no punctuation. (ex. 978-897-3777 x 20 is 978897377720)

Once you have entered in the required fields press F2 to run. Once the process is complete, you will receive the following message, which includes the file path where the IRSTAX file was created.