Summary

The 1099s process is used to generate 1099 forms for Accounts Payable module vendors (use the Payroll module 1099-R process to generate 1099-Rs). The Print step of the process will fill in the boxes on a blank 1099 form, so you must have 1099 forms in order to use the process. The 1099 process also includes an Export step to generate an ASCII file of the 1099s. This file can be submitted to the IRS using the Filing Information Returns Electronically System (FIRE System). See IRS publication 1220 for more information on electronic filing or go directly to the IRS FIRE website: https://fire.irs.gov

When an AP module vendor is created (AP> Maintenance> Vendor), you can define if you are going to generate 1099s for that vendor on the Vendor Maintenance window (AP> Maintenance> Vendor> Details Tab> Default 1099 Type drop-down menu). All AP invoices for the vendor will be totaled on a 1099 when the 1099s are generated in AP> 1099s> Generate process. You can view a list of 1099 vendors by generating a Vendor Master report filtered by 1099 vendors (AP> Reports> Vendor Master> 1099 field> Vendors with 1099).

If you want to create a 1099 for specific invoices rather than generate a 1099 for all vendor invoices, you can select the specific invoices to be included on the 1099s during the Select Invoices step (AP> 1099s> Select Invoices).

If you do not need to add or remove specific vendor invoices from the 1099s batch, you can skip the Select Invoices step and generate the 1099s using the Generate 1099s step. All invoices attached to vendors that are set up as 1099 vendors will be included in the batch. You can return to the Select Invoices step if you find invoices that should not be included on the 1099s batch after the 1099s have been generated.

Step by Step

1     Open or create a new 1099s batch.

• Open the 1099s Batches window (AP> 1099s). The Batches window will display all the open 1099s batches.
• Select a batch and click DETAILS to open the selected batch.
• Select a batch and click the Delete button to delete the selected batch.
• Click the Create New Batch button to create a new batch. This will open the Create Batch window.
  • If there are open batches in the 1099s process, you can create a new batch without affecting the open batches.
• The batch number, batch month and batch year of the batch will not affect the 1099s that are generated in the process. The batch information is for reference purposes only.
• Click the Create New Batch button to create the new 1099s batch.

2     Open the Batch Overview page.

• The Batch Overview page provides a general overview of the selected batch.
• The left navigation menu displays all the steps in the 1099s process.
• In the main section you'll see information about batch steps that are currently processing, next available batch steps, and the last completed batch step.
  • Batch steps that are currently processing will display a blue indicator bar to alert you that the step has not yet completed.
  • Once the preceding batch step is complete, the next available batch steps will be enabled and you can select the next step you would like to run.
    • While some batch steps are optional, any batch step that includes the Required tag must be completed before the batch is allowed to proceed through to the Commit step.
• The Batch Outputs section on the right will display any reports or exports that have already been generated in the 1099s process.

3     Specify the batch Settings.

• Select the type of 1099s you would like to generate in the Reporting Type drop-down menu.
  • The Contract option is for California clients and is used to filter the invoices included on the 1099s using a check date filter. This will enable the Date From and Date To fields.
• The Misc Limit, Int Limit, G Limit, S Limit, and NEC Limit fields will filter the specific 1099s below the values entered in these fields. $600 is the traditional 1099 reporting limit.
  • If you have two vendor numbers for a single 1099 vendor, you may wish to reduce the limit so the vendor transactions are not filtered out.
• The Calendar Year field will default to the previous calendar year and will be only be enabled when Standard is selected in the Reporting Type drop-down menu above.
• The Date From and Date To fields are only enabled if you select Contract from the Reporting Type drop-down menu.
• The Home Department field is used to specify a home department for the 1099s batch. Enter a home department or click the field search button to select one from a list.
  • When a home department is specified, the invoices displayed in the following Invoices step will be limited to those invoices assigned to the same home department.
  • Departments are created and maintained on the Department Maintenance screen (SS> Maintenance> Department).
• Check the toggle next to the Bank Codes attached to the invoices you would like to include in the 1099s batch.
  • These toggles allow you to select invoices paid from a specific bank. This is useful if you're running 1099s for an agency with a different EIN.
• The Override Info tab is used to specify override organization details and an override EIN (Employer Identification Number) for the 1099s batch.
  • This tab is useful when a parent agency is tasked with processing 1099s for a child agency. If the Override Info fields are not used, the standard organization details and EIN number will be attached to the 1099s batch.
• Click the Submit button to the save the batch settings.

4     Select the invoices to include on the 1099s. This is an optional step.

• The Invoice selection process is used to display specific vendor invoices that could be included in the 1099s batch. You can skip this step if you do not need to review the specific invoices. The vendors displayed in this step are not necessarily the same as the vendors included in the 1099s batch.
• Open the Invoices window (AP> 1099s> Invoices).
• Filter the vendors that will be displayed in the Filter section.
  • Click the Vendor From and Vendor To field search buttons to specify a range of vendors to be displayed. This will open the Vendor Selection window. All vendors will display in the Vendor Selection window, not just vendors that are set up as 1099 vendors (AP> Maintenance> Vendor> Details Tab> Default 1099 Type drop-down menu).
  • In order to include all vendors leave the Vendor From and Vendor To fields blank.
  • The Vendor 1099 Type and Invoice 1099 Type fields are used to filter the displayed vendors and invoices by 1099 types G, Int, Misc, NEC, or S. By default, these fields will be set to All.
• Click the Search button to update the window. The Vendors section below will populate with all of the vendors that fall within the range specified.
  • The Send 1099 toggle will be checked for each vendor that is set up with a default 1099 type.
  • The 1099 Type field will display the 1099 type set up for the vendor on the Vendor Maintenance window (AP> Maintenance> Vendor> Details Tab> Default 1099 Type drop-down menu).
• Highlight a vendor in the Vendors section, and the invoices associated with that vendor will populate the Invoices section to the right.
  • The Invoice Number, Amount, 1099 Type, and Original Vendor for each invoice will be displayed. Click on an invoice number to view the invoice details.
  • Click the 1099 Type field drop-down menu to edit the 1099 type for the selected invoice.
• The Totals section will display the total invoice amount for each 1099 type associated with the vendor.
• If any of the 1099 information has been edited, click the Save button when complete.

5     Generate 1099s.

• When the generate step is processed, the system will look at the 1099 Type and 1099 Box fields on each included invoice line item to determine which 1099 boxes will be populated. These placements can be edited in the next step.
  • If a 1099 box is not defined, the system will use the default 1099 box for that form type. Default boxes are as follows: MISC = 7, G = 2, INT = 1, NEC = 1, S = 2.
  • If an included vendor record has a value specified in the Default 1099 Disc Box field, the system will automatically aggregate the Discount Amount and display it in the specified Default 1099 Disc Box while the aggregated Base Amount still displays in the specified Default 1099 Box.
• Click the Submit button to generate the 1099s. You can view the progress of the 1099s on the Job Viewer window in SS> Utilities> Show Scheduled Jobs.

6     Edit the generated 1099s.

• Open the Edit window (AP> 1099s> Edit) to view the generated 1099s.
• Highlight a vendor and click DELETE to delete the selected 1099.
  • This will only delete the generated 1099. You can regenerate 1099s that were erroneously deleted using the Generate step (AP> 1099s> Generate).
• Click the CREATE 1099 drop-down menu to manually create a 1099. This will open the Create 1099 window. Each 1099 type shares the same General tab, but the Numbered Boxes tab will differ between types. Enter the 1099 information and click the Save button   to manually create a 1099.
  • The 1099-MISC type is used for standard miscellaneous income.
  • The 1099-NEC type is used for nonemployee compensation.
  • The 1099-INT type is used for income earned through interest.
  • The 1099-G type is used for income resulting from government payments.
  • The 1099-S type is used for income resulting from sales or exchanges of real estate.
• Highlight a 1099 and click EDIT to open the selected 1099. This will open the Edit 1099 window. The fields in the window will populate with the information attached to the selected 1099.
• The General tab displays the general information on the 1099. Modify the information in any of the fields to modify the 1099.
  • Changes to the vendor information on the 1099 will not update the AP module vendor record; changes will only update the information on the 1099.
  • The Recipient's Name field will display the First Name and Last Name on the vendor record (AP> Maintenance> Vendor> General tab> Last Name and Fist Name field).
  • Check the Receipt’s 2nd TIN Not toggle if the 2nd TIN Not box should be checked on the 1099.
  • Check the FATCA Filing Requirement toggle if the vendor is responsible for reporting foreign financial assets.
• The Numbered Boxes tab displays the information in the numbered boxes on the 1099 form. Modify the values in any of the fields to modify the 1099.
• Click the Save button when complete to save the changes to the 1099.
  • The Save button will only be enabled after changes have been made in the window.
• Review every 1099 carefully.

7     Print a Proof List.

• Open the Proof List window (AP> 1099s> Proof List).
• Select the 1099 Type you would like to print. You can run this step more than once in order to generate proof lists for each 1099 type.
• Once the required report settings have been specified, click the Print button   to print your report.
• Click the options arrow on the right side of the Print button to see other print options.
  • Select Send PDF to Job Viewer to print the report in the default Springbrook format.
  • Select Send Excel to Job Viewer to export the report data to an Excel spreadsheet as unformatted data.
  • Select Send Excel (Formatted) to Job Viewer to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
• Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
  • Enter a Date and Time to generate the report and click SUBMIT.
• The proof list will display the Vendor Number, Vendor Name, and Tax ID for each vendor included in the report.
• Box totals will be provided for each of the type-specific 1099 boxes.
  • 1099-Misc will display Rents, Royalties, Other, Federal Tax, Fishing Boat, Medical, Non-Employee, Substitute, Crop Insurance, and Attorney Proceeds.
  • 1099-NEC will display Nonemployee Compensation, Federal Tax Withheld, State Tax Withheld, State Income, and State Tax ID.
  • 1099-Int will display Interest Income, Early Withdrawal, Interest on Bonds, Federal Income Tax, Investment Expense, Foreign Tax Paid, Tax-exempt Interest, and Private Bonds.
  • 1099-G will display Unemployment Compensation, State Tax Refunds, Federal Income Tax, ATAA Payments, Taxable Grants, and Agricultural Payments.
  • 1099-S will display Gross Proceeds and Buyer's Real Estate Tax.
• The report will also provide a report total for each 1099 box.
• Review the proof lists carefully before printing the 1099s.

8     Print the 1099s.

• The Print step is used to actually generate the 1099 forms. This step in the process will generate the forms on a PDF report. Once the step is complete, load the 1099 forms into a printer and then print the PDF report on the printer where you loaded the forms. The Print step will only print the box amounts. You will need 1099 forms.
• Open the Print window (AP> 1099s> Print).
• The Line Spacing field is used to adjust where the text will print on the page.
  • Increase the line spacing to move the print text lower on the page.
  • Decrease the line spacing to move the text higher on the page.
• Select the 1099 Type that you would like to print. You can run this step more than once in order to generate 1099 forms for each 1099 type.
• Once the required report settings have been specified, click the Print button   to print your report.
• Click the options arrow on the right side of the Print button to see other print options.
  • Select Send PDF to Job Viewer to print the report in the default Springbrook format.
  • Select Send Excel to Job Viewer to export the report data to an Excel spreadsheet as unformatted data.
  • Select Send Excel (Formatted) to Job Viewer to export the report data to an Excel spreadsheet that includes much of the Springbrook formatting found on the printed version of the report.
• Click the Schedule icon next to the Print button in order to schedule the report to generate at a later date and time.
  • Enter a Date and Time to generate the report and click SUBMIT.
• The organization phone number and information that will print on the 1099s is set up on the System Setup window (SS> Utilities> System Setup> Organization Info section). In order to change this information on all of the 1099s you will have to regenerate the 1099 batch after changes have been made to the organization information.

9     Create an ASCII file of the 1099s.

• The export step is used to create an ASCII file that contains the 1099s. This file can be submitted to the IRS using the File Information Returns Electronically System (FIRE). See IRS publication 1220 for information on electronic filing.
• Open the Export window (AP> 1099s> Export).
• Select the 1099 Type that will be exported. You can run this step more than once in order to generate the export file for each 1099 type.
• Enter your contact information in the Export window. This information will not overwrite the organization information on the 1099s but in some cases will be included in the export file.
• Enter a Transmitter Control Code in the TCC field. This code is obtained from the IRS.
• The State Info field can be used to enter an EDD Account number.
  • An Employment Development Department account number is for California users only.
• Check the Create as test file toggle if the export file is a test file.
  • Checking this toggle will change the format of the export file.
• Check the Combine state and federal toggle if the 1099s are combined state and federal forms. This will change the format of the export file.
• Click the Submit button when complete to create the export file.
• Once the export has finished processing, the export file can be opened from the Notifications pane.
• There is no commit step of the 1099s process so the 1099 palette will remain open after the export file of 1099s have been printed.  You can reprint 1099s throughout the year without having to regenerate them.

10     Commit the 1099s batch.

• Open the Commit screen.
• Click the Save button to commit the 1099s batch.