1099 Processing Users Guide

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Tracking and printing of laser 1099 forms and reports are automated utilizing 1099 flagging of accounts payable invoices. The printing of these forms is designed to use the IRS official 1099 forms which can be obtained from the IRS or purchased from an office supply store (Advantage does not sell or supply 1099 forms). 1099 laser forms can be printed for a single Federal ID or for multiple Federal IDs in a single database by selecting the Bank associated with each Federal ID (Office). 1099 forms will include total payments to (checks written) for vendors with rent, other income and nonemployee compensation amounts of $600 or more, royalty amounts of $10 or more and gross proceeds paid to an attorney in any amount. 1099 information is based on the vendor “pay to” code in the check register. SETUP OPTIONS Vendor The Pay to Name and Address, on the Main tab, are used on the 1099 unless an alternative 1099 address is entered and checked to “Use” on the 1099 Info tab. Federal Tax ID - Enter the Vendor's Federal Tax ID number.

1099 Info Tab To issue a 1099 to a Vendor the vendor must be activated as a 1099 Vendor. The 1099 Info tab holds the Vendor’s default information. • •

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1099 Vendor - Select this check box if the Vendor should receive a 1099 Form. Alternate Address for 1099 - Select the Use check box if the address entered in this section should be printed on the vendor’s 1099. If this box is not checked, the Pay To Address on the Main tab will be used. Category - Select the type of payment for this Vendor: o Non Employee Compensation o Other Income o Rent o Royalties o Gross Proceeds to Attorney Page 2 of 6

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Printing Amounts in Box 3 – Other Income To report payments in Box 3 (Other Income), you have the ability to enter a description for this information by adding it to the sort option field on the Defaults/Notes tab

Agency Maintenance Settings When initially implementing your system you would have made a decision on how the system defaults should work for the recording of 1099 invoices. There are two approaches that can be taken when processing 1099 vendor invoices. • •

All invoices posted to a vendor are flagged for 1099 reporting. Specific invoices posted to a vendor are flagged for 1099 reporting.

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ACCOUNTS PAYABLE ENTRY If the agency option “Flag individual vendor A/P invoices as 1099” is checked, a field displays on the Accounts Payable Entry screen called 1099 Invoice. This feature allows you to mark individual invoices for the specified vendor as 1099, while others can remain non-1099. •

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If the Issue 1099 field is checked on the Vendor record, this field will be checked by default, but may be changed. When the field is checked, the paid invoice amount will be included in the 1099 total for the year. If the field is not checked, the invoice amount will not be included in the 1099 total.

If the Agency Maintenance option “Flag individual vendor A/P invoices as 1099” is not checked a 1099 field will not display. Page 4 of 6 Updated 11/2013

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Invoices posted to the vendor will be flagged as 1099 based on the Vendor 1099 Info settings in the Vendor maintenance application at the time invoices are input into the Accounts Payable application.

CORRECTING INVOICES TO INCLUDE / EXCLUDE FROM 1099 TOTAL Corrections can be made to 1099 invoices that are included or excluded incorrectly on the 1099 report. This could have occurred by checking or unchecking the 1099 checkbox for a vendor invoice or if the 1099 flag was not setup correctly and invoices were input. You will first need to activate the Vendor as a 1099 Vendor. This is done in the Vendor maintenance application. See the information above under Setup Options, Vendor, 1099 Info Tab. In Accounts Payable, a search can be done by: Vendor, Invoice, Invoice Detail or Alert Status. The 1099 flag can be modified on multiple invoices simultaneously using the Edit button on the ribbon. Once the invoices are displayed, click the Edit button. This will turn the fields red indicating they can be edited. Once the related 1099 Invoice check boxes have been modified, click the Save button.

The 1099 flag on an invoice can also be modified by selecting the invoice in the Accounts Payable application screen and checking or unchecking the 1099 Invoice checkbox and saving the modification. 1099 REPORTS 1099 reports and laser forms are printed Advantage | Finance and Accounting | 1099 Processing. 1099 forms will include total payments to (checks written) for vendors with rent, other income and nonemployee compensation amounts of $600 or more, royalty amounts of $10 or more and gross proceeds paid to an attorney in any amount. 1099 information is based on the vendor “pay to” code in the check register. Prior to submitting 1099 reports, complete the following setup in the ‘Settings’ button: • Federal Tax ID • IRS Transmitter Control Code • Contact • Combined Federal / State Filing Program Approved

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Search To determine the 1099 Selection Criteria, click the ‘Search’ button on the Ribbon and select the following: • •

Banks – Select the banks to be included in the 1099 processing. Check Dates – Select the date range of payments you are reporting on.

Report Options •

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Standard Report (Vendors marked for 1099) – Prints the total of payments to all vendors flagged as 1099 vendors. This report also includes pay to address information, tax ID, income type and total amount paid. This report can be printed or exported to Excel. Standard Form (Laser) –Prints the 1099 laser forms for the date range and address options selected. Only total payments to (checks written) each vendor is included in on the form. 1099 Report All Vendors (Summary) – Prints a summary for the specific selection criteria by AP Account and includes both 1099 and non-1099 vendors. This report includes the tax ID, total amount paid, marked 1099 (yes or no) and the vendor status (active or inactive). This report can be printed or exported to Excel. 1099 Report – with AP Detail Disbursement – Provides the disbursed amounts padi by GL Account for each 1099 vendor. This report also includes pay to address information, tax ID, income type and total amount paid.

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