Year-end 1099 reporting
If you do business with vendors that are subject to United States 1099 tax, you must track the amount that you pay to each vendor and report that information to the US tax authorities at the end of the calendar year. The vendors are typically individuals who are not employees and who provide services to your organization. You must also send a statement to each 1099 vendor that you do business with, informing them of the amount that you are reporting to the tax authorities.
For each vendor that you have set up to be a 1099 vendor, the amounts are tracked within Finance throughout the year. On invoice lines, you can use the 1099 box and 1099 amount fields to track 1099 amounts. Even if you do not enter a value in the 1099 amount field, any payment that is posted for the invoice amount contributes to the 1099 total for the specified 1099 box. If you do enter a 1099 amount, the amount that you entered is used instead of the posted payment amount.
Finance can process the 1099-MISC, 1099-DIV, 1099-INT, 1099-S (Proceeds from Real Estate Transactions), and 1099-G (Certain Government Payments) information. You can pay an invoice with 1099-G and 1099-S information and process 1099-G and 1099-S tax statements.
1099-G
The Internal Revenue Service (IRS) requires that any government payment that is made by any federal, state, and local government entity be declared to the IRS and the vendor to whom the payment was made. You can report payments that are made by a government entity by using the 1099-G tax page.
These payments can be unemployment compensation, state or local income tax refunds, credits or offsets, alternative trade adjustment assistance (ATAA) payments, taxable grants, or agricultural payments. The payment can be for such things as serving on a government commission, per diem employment payments, or a taxable state refund.
1099-S
The IRS requires that companies, agencies, or individuals in the US that are responsible for closing a real estate transaction report the real estate proceeds to the IRS and the individual, company, or vendor who purchased the real estate. You can report all real estate transactions to the required parties by using the 1099-S tax page.
The 1099-S page shows the real estate proceeds for closed real estate transactions and includes transaction information such as the date of the closing, gross proceeds, address or legal description of the property, account or escrow number, and buyer's part of real estate tax.
Process a 1099 tax statement
According to US Government regulations, you need to file a 1099-G tax statement with the IRS and send a copy of the 1099-G tax statement to the respective vendor once a year. Similarly, you can send a printed copy of 1099-S transactions to the IRS or the respective vendors.
However, before processing the 1099-G or 1099-S tax page, you need to verify and update the minimum reporting amounts and descriptions that are associated with the 1099-G or 1099-S fields. You can then verify and update the minimum reporting amounts in the 1099 fields page.
The Vendor settlement for 1099s page lets you print 1099-G or 1099-S information for each vendor. On this page, you can view all 1099 transactions that are associated with a specific vendor in the Overview grid of this page, calculate the totals for all vendors, and determine whether the amounts are reportable or not based on the entries on the 1099 fields page.
Use the Tax 1099 print options page to print the required type of 1099 transactions for a specific vendor, such as 1099-G or 1099-S. You can also specify the reporting year and assign unique numbers for 1099 statements on this page.
Use the Tax 1099 detail report to print a detailed list of 1099 statement transactions for each vendor. You can run this report by year and can filter it by vendor. This report can be used by collections managers, accountants, accounting managers, and accounting supervisors.
Watch the following video to see how to prepare, process, and print vendor 1099 statements.