With the beginning of a new year, comes the preparation for tax season.
Sage Intacct, the leading accounting and financial management software, helps you file your 1099 form with efficiency and ease. It has the inbuilt capabilities you need to ensure the smooth and successful completion of your 1099 year-end checklist.
Here’s your guide to navigating the process with ease using Sage Intacct:
Note: Sage Intacct ONLY tracks 1099 amounts paid to a vendor starting when the vendor is setup for 1099’s. Sage Intacct does not accumulate 1099 data retroactively unless you change the vendor's 1099 information and choose the update option or use an import option for certain transactions.
1099 process overview
The basic flow looks like this:
To add a new vendor with 1099 information:
- Go to Accounts Payable > All , and click the + sign beside Vendors.
- On the Additional Information tab for the vendor, select the 1099 eligible option and, in the 1099 name field, enter the vendor name as it should appear on 1099 forms.
- Click Save. The Form 1099 Information with Default Box page appears.
- Select the 1099 form that the vendor receives, and the default 1099 box where payments to the vendor should be tracked.
- Click Save. Then click Save again on the vendor record.
Add or edit 1099 information for an existing vendor
- Go to Accounts Payable > ALL > Vendors. Click Edit beside the appropriate vendor, then click the Additional Information.
- In the 1099 name field, enter the vendor name as it should appear on 1099 forms.
- If the 1099 name is different than the "Print as" name of the vendor, we print both names on 1099s. The 1099 name will appear above the "Print as" name.
- Click the Form 1099.
- On the Form 1099 Information with Default Box page, select the Form name that the vendor receives, the default 1099 box where payments to the vendor should be tracked, and (optionally) enter historical YTD amounts. Note: You must choose the entity to open the historical amounts boxes for viewing or changing.
Verify your 1099’s
Make a Custom View
Prior to generating your 1099 report, make sure that the correct vendors are setup to receive a 1099 and you have all the information you need, such as taxpayer ID, the correct 1099 box, and physical address.
To create a custom list view for 1099 information:
- On the Vendor list page, click Manage view > Create new view.
- Select the desired columns. For example, Form 1099 Type, Form 1099 Box, 1099 Name, Address line 1, City, State and Zip code/Postcode.
3. Save the view.
Run the 1099 Report
The 1099 report enables you to check that transactions for your vendors are setup with the correct 1099 form, box and amount. To generate this report, go to Accounts Payable > All > Reports > 1096/1099, and click 1099 reports. When the report page appears, select the correct Entity and form type.
Note: Make sure that you choose Show All in the Transaction Information section. This will enable you to see all transactions for the vendor regardless of whether or not they will display on the 1099. It will also enable you to make sure that the correct amount will appear on the 1099.
Solve 1099 Reporting Issues
If you discover issues with your transactions after you generate your 1099 report, you can reclassify any transactions that are incorrect (some transactions can't be reclassified, such as in Global Consolidation), or you can import transactions to mass update them.
You can also change the status of a vendor from ineligible to eligible, and vice versa, then have the system automatically update all the associated transactions. (See instructions above - Add or edit 1099 information for an existing vendor).
When you update the 1099 information for a vendor, you will get the options below, so you can have Sage Intacct update prior transactions (or not).
Print your 1099s and 1096s
Note: Tax forms purchased from Sage Intacct on the Forms from Sage Intacct page are aligned for printing and are the ONLY ones supported by Sage Intacct.
When you are confident that your 1099 report is accurate, you're ready to print your 1099 forms and your 1096 form, both of which you submit to the government.
File Your 1099s Electronically
We recommend contacting one of our Sage Intacct Marketplace partner services, which specialize in printing, mailing, and filing 1099 forms electronically. You'll need to create a 1099 file and export it, then upload it with one of the Marketplace partners. If you do not have an account with a Sage Intacct Marketplace partner to file your 1099s, you can establish one in advance of creating your 1099s so that you are prepared.
You can export your 1099 file in one of the following file formats: CSV, Excel, XML, or XSD.
Note: If you are filing more than 250 1099 forms, the law requires that you file electronically.
Want to learn more about how Sage Intacct helps you navigate tax season with ease? Our consultants are here to answer any questions you may have.