Print 1099-MISC

You can print end of year vendor 1099-MISC forms for IRS submission from SuccessWare21. As vendor payments are entered throughout the year, each payment is categorized into the box in which it should be reported on 1099-MISC. You can also identify those payments that should not be reported as 1099-MISC income. In January after all payables data entry has been completed for the prior year, you will review 1099 vendor payments, verify the 1099 categorization, and print your 1099's. You may also use the 1099 review features to review current year activity at any time.

For both the 1099-Misc and the 1096 forms, you must use IRS approved preprinted forms.

SuccessWare21 only gathers the information for filling out the 1099-MISC boxes in the supported list below. If you need to report into any of the boxes in the unsupported list, you should not print 1099-MISC from SuccessWare21.

Supported 1099 boxes include

o Box 1: Rents

o Box 2: Royalties

o Box 3: Other income

o Box 5: Fishing boat proceeds

o Box 6: Medical and health care payments

o Box 7: Nonemployee compensation

o Box 8: Substitute payments in lieu of dividends or interest

o Box 10: Crop insurance proceeds

o Box 13: Excess golden parachute payments

o Box 14: Gross proceeds paid to an attorney

The following 1099 boxes are not supported

o Box 4: Federal income tax withheld

o Box 9: Payer made direct sales of $5000 or more…

o Box 11: Not used

o Box 12: Not used

o Box 15a: Section 409A deferrals

o Box 15b: Section 409A income

o Box 16: State tax withheld

o Box 17: State/Payer’s state no.

o Box 18: State income

Initial Setup

Division Setup

Your Federal Employer Identification Number (EIN) will be printed on 1099-MISC forms. You will need to record this number in SuccessWare 21. Open Company Setup, and on the Address/Phone tab, enter your Federal EIN.

Vendor Details

To take advantage of 1099-Misc reporting in SuccessWare21, you will need to categorize your vendor payments appropriately. In order to categorize payments for a vendor, the vendor must be configured to allow 1099 reporting. You will also set up a default category for each vendor.

In Vendor Details (F3 from Payables Manager) Identify your 1099 vendors. For your 1099 vendors, select the Print 1099 checkbox, enter the vendor's Tax ID# (Social Security #) and select the appropriate default 1099 Category for payments.

User Group Setup

1099-MISC forms can only be printed by an authorized user. In User Manager | User Groups on the Reports page, for each User Group that is allowed to print 1099-MISC, set the Print 1099-MISC checkbox.

Daily processing

Payments (Checks) / Vendor Refunds

When making a vendor payment (or entering a vendor refund), a selection is available for 1099 Category. The selection may only be made for 1099 vendors, otherwise it will be pre-filled with the "non-1099 payment" category and disabled. For 1099 vendors leave the default value as is, or modify as necessary. You may also select the "non-1099 payment" category if the payment should not be reported on form 1099-MISC.

Pay Bills

When paying bills and you are presented with the checks to be printed/posted, you may also modify the 1099 Category for those vendors that are 1099 vendors, as needed.

Printing 1099-MISC

1099-MISC forms are printed from the Report Gallery | Accounts Payable. Selecting the 1099-MISC report brings up the 1099 Vendor Review form.

1099 Vendor Review/Print Process

1. Select Tax Year – Select the tax year to work with. Normally you will be printing 1099-MISC for the Last Calendar Year, but Current Calendar Year is also available as an option for reviewing and correcting 1099 information prior to the end of the current tax year.

2. Review vendors– Review your vendor payment 1099 classification for accuracy, and make any corrections to 1099 categorization. The vendor review grid will display all 1099 vendors, plus any other vendors that have any payments that are either categorized as 1099 or are "miscategorized". Review the classifications and make any necessary corrections. If any amounts show up in the "miscategorized" column, the payments for those vendors must be corrected before proceeding.

Select or deselect vendors for printing. You will want to select only those vendors that meet the minimum reporting threshold for the category of payment being reported. For example for 2009, the minimum reporting threshold for "Box 7 Nonemployee compensation” is $600. If you have a vendor with a Box 7 value of less than $600, you should deselect it for printing. Select or deselect a vendor by double-clicking in the Select column, or by selecting the vendor in the grid and pressing the space bar. On the right-click popup menu there is also an option for Select/Deselect All.

If you need to change the "1099 Vendor" status of a vendor, select the vendor in the grid and select Edit Vendor.

To get a printed copy you can right click, and select Grid Report or print the 1099 Listing Report (see below)..

Review payments for a vendor – To review the payments for a particular vendor, select the vendor in the grid and Review Payments. All payments (and refunds) for the selected vendor will be displayed.

To correct the 1099 Category on any payment, select the payment, and using the dropdown, select the correct category for the payment.

To change all payments to the vendor's default category, right click and select Set All to Vendor Default.

To get a printed copy you can right click and select Grid Report, or print the 1099 Listing Report (see below)..

3. Test Alignment – Before printing your 1099-MISC forms, you can use the Print Alignment feature and the Top and Left Margin settings to make any necessary adjustments to the alignment of your forms.

4. Print 1099-MISC – After you have made your vendor selections, verified vendor 1099 categories, and are certain all amounts are correct, you may print your 1099-MISC forms. You are required to print three or more copies of 1099-MISC depending upon the particular reporting requirements in your location - Copy A for the IRS, Copy B for Recipient, Copy C for Payer, a copy for your state if required, etc. When using a laser printer you will load each 1099-MISC form copy separately in your printer and print each 1099-MISC copy in a separate print request.

You may enter your Federal EIN here if you had not already done so in Company Setup.

5. Print 1096 Summary – After printing your 1099-MISC forms, be sure to print your 1096 summary. The IRS requires that form 1096 be submitted along with 1099-MISC forms that are submitted on paper. Form 1096 is a summary form that totals the amounts reported on the individual 1099-MISC forms. Do not alter your vendor selections before printing the 1096 summary.

A 1099 Contact Name is required for printing on the 1096 form.

1099 Listing

The 1099 Listing Report can be used to get a detailed report of all payment transactions grouped by Vendor. This report can be used as an additional tool for reviewing the accuracy of your 1099 categorization in a printed report format.