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#330 Complete 1099's
Function
Use the complete 1099 Supplement to issue Vendor 1099MISC and 1099NEC forms (non-employee compensation).
Use the complete 1099 Supplement to issue Vendor 1099MISC and 1099NEC forms (non-employee compensation).
1099 Processing Checklist
| 1099_check_list__1_.docx |
Things You Should Know
- B. A 1099 will be generated for vendors that have the 1099 Eligibility box checked in the vendor file.
- A. The 1099 box designation will be read from the vendor file and included under Box # on the form.
- C. If 1099NEC is checked, the number 1 will be auto entered into the 1099 box and eligible will also be checked. These vendors will receive Form 1099NEC rather than Form 1099MISC.
- On the bottom of the 1099 form there is a check box to Include 1099 refunds. By checking this box, the system will subtract any cash receipts entered that have been defined as a 1099 refund. (See the Help Section for Cash Receipts for more information).
- TIN numbers on all forms will need to be edited to include dashes in the appropriate locations after you have completed the Save/Prepare 1099 step. Be certain you have reviewed all forms for completeness plus to ensure all vendors are included before you begin the process of editing the TIN numbers. If you should find it necessary to Save/Prepare 1099 information again, you will lose all edits.
- For the 2023 filing year, the IRS reduced the number of vendors required for electronic filing from 250 down to 10.
Operating Instructions
NOTE: Make sure you have the December revisions installed before proceeding.
NOTE: Make sure you have the December revisions installed before proceeding.
Save/Prepare 1099
A. Tax Year: Enter the four-digit year for which 1099’s are being prepared.
B. Minimum payment amount: Enter the minimum dollar amount that you want 1099’s to be printed for. In most instances, $600 will be the minimum.
C. Include 1099 refunds: By checking this box the system will subtract any cash receipts entered that have been defined as a 1099 refund. If Supplement #336 Accounts Receivable is used, this function does not apply. (See the Help Section for Cash Receipts for more information).
D. Compress vendors by FID/SSN: For those agencies that have more than one vendor code set up for one vendor and want the 1099 amounts combined to produce one 1099, you should check this box. This step will check all vendors in the 1099 file for like Federal ID or Social Security numbers and combine amounts appropriately.
E. Prepare: Click this button when all the above information has been entered. The Prepare step can be run multiple times. For example, if you have processed this step and when reviewing the information, you omitted a vendor or have an incorrect box designation, you can make the correction in the vendor file and re-run the Prepare step. The system will re-create the 1099 file with the corrected information.
B. Minimum payment amount: Enter the minimum dollar amount that you want 1099’s to be printed for. In most instances, $600 will be the minimum.
C. Include 1099 refunds: By checking this box the system will subtract any cash receipts entered that have been defined as a 1099 refund. If Supplement #336 Accounts Receivable is used, this function does not apply. (See the Help Section for Cash Receipts for more information).
D. Compress vendors by FID/SSN: For those agencies that have more than one vendor code set up for one vendor and want the 1099 amounts combined to produce one 1099, you should check this box. This step will check all vendors in the 1099 file for like Federal ID or Social Security numbers and combine amounts appropriately.
E. Prepare: Click this button when all the above information has been entered. The Prepare step can be run multiple times. For example, if you have processed this step and when reviewing the information, you omitted a vendor or have an incorrect box designation, you can make the correction in the vendor file and re-run the Prepare step. The system will re-create the 1099 file with the corrected information.
Edit 1099
Edit: This selection will allow you to edit all fields of a Vendor’s 1099 information except the Vendor number. As you click on the Edit button, it changes to Save.
To add a vendor to the grid, after clicking on edit, click on the “+” sign at the bottom of the grid. This will add a blank line and information can be entered. To remove a vendor from the grid, after clicking on edit, highlight vendor to be removed and click the “-“at the bottom of the grid.
To add State tax withheld and the State Account number, click on the "+", select the vendor. In the box column, enter either 6 for NEC or 17 for MISC and in the amount column, enter the State account number. Add another another line for the same vendor and either 5 for NEC or 16 for MISC and in the amount column, enter the State tax withheld. The vendor will be in the grid listed 3 times but will only receive 1 1099.
Edit: This selection will allow you to edit all fields of a Vendor’s 1099 information except the Vendor number. As you click on the Edit button, it changes to Save.
To add a vendor to the grid, after clicking on edit, click on the “+” sign at the bottom of the grid. This will add a blank line and information can be entered. To remove a vendor from the grid, after clicking on edit, highlight vendor to be removed and click the “-“at the bottom of the grid.
To add State tax withheld and the State Account number, click on the "+", select the vendor. In the box column, enter either 6 for NEC or 17 for MISC and in the amount column, enter the State account number. Add another another line for the same vendor and either 5 for NEC or 16 for MISC and in the amount column, enter the State tax withheld. The vendor will be in the grid listed 3 times but will only receive 1 1099.
Check Data: This option will prepare and display a report. If SSN/FID numbers are missing hyphens, the vendor will be listed on the report. Hyphens are needed in the SSN/FID when creating the IRIS 1099 file.
Proof: The proof provides all information to be printed on the 1099 for review. This gives you the opportunity for a final review before the forms are loaded into the printer. At the bottom of the report, the total number of forms required as well as the total dollar amount of all 1099s is listed including subtotals for 1099MISC and 1099NEC.
Print 1099s/1096
Include 4 digits SSN/FID: To only print the last 4 digits of the vendor’s Social Security number/Federal ID, check this box.
Print 1099 MISC: This will print the information on the 1099MISC forms.
You need to print 4 ( if less than 10 vendors) of the 1099MISC form, each which contains information for two vendors. Copy A is for the IRS, Copy 1 is for the State, Copy C is for the payer and Copy B is for the recipient. Each copy is printed one time.
Print 1096 MISC: (if less than 10 vendors) This option will allow you to enter the contact information and print the 1096MISC form that gets submitted with your 1099MISC's to the IRS.
Print 1099 NEC: Putting a check in the “Copy A” box will combine both lines of the Address fields from the vendor file. Because of size limitations, the address will be cutoff if it doesn’t all fit. Leaving the “Copy A” box unchecked will print each address line on separate lines.
This will print the information on the 1099NEC forms.
You need to print 4 ( if less than 10 vendors) of the 1099NEC form, each which contains information for two vendors. Copy A is for the IRS, Copy 1 is for the State, Copy C is for the payer and Copy B is for the recipient. Each copy is printed one time.
Print 1096 NEC: (if less than 10 vendors) This option will allow you to enter the contact information and print the 1096NEC form that gets submitted with your 1099NEC's to the IRS.
GMS Transmittal & E-File This takes you to the steps to prepare a file to electronically transmit the 1099 data to the IRS.
Print: This allows you to print your electronic file setup information.
Proof: The proof provides all information to be printed on the 1099 for review. This gives you the opportunity for a final review before the forms are loaded into the printer. At the bottom of the report, the total number of forms required as well as the total dollar amount of all 1099s is listed including subtotals for 1099MISC and 1099NEC.
Print 1099s/1096
Include 4 digits SSN/FID: To only print the last 4 digits of the vendor’s Social Security number/Federal ID, check this box.
Print 1099 MISC: This will print the information on the 1099MISC forms.
You need to print 4 ( if less than 10 vendors) of the 1099MISC form, each which contains information for two vendors. Copy A is for the IRS, Copy 1 is for the State, Copy C is for the payer and Copy B is for the recipient. Each copy is printed one time.
Print 1096 MISC: (if less than 10 vendors) This option will allow you to enter the contact information and print the 1096MISC form that gets submitted with your 1099MISC's to the IRS.
Print 1099 NEC: Putting a check in the “Copy A” box will combine both lines of the Address fields from the vendor file. Because of size limitations, the address will be cutoff if it doesn’t all fit. Leaving the “Copy A” box unchecked will print each address line on separate lines.
This will print the information on the 1099NEC forms.
You need to print 4 ( if less than 10 vendors) of the 1099NEC form, each which contains information for two vendors. Copy A is for the IRS, Copy 1 is for the State, Copy C is for the payer and Copy B is for the recipient. Each copy is printed one time.
Print 1096 NEC: (if less than 10 vendors) This option will allow you to enter the contact information and print the 1096NEC form that gets submitted with your 1099NEC's to the IRS.
GMS Transmittal & E-File This takes you to the steps to prepare a file to electronically transmit the 1099 data to the IRS.
- Please check all fields in the top portion of the form for accuracy.
- You must also enter data in the Contact Information section. The file will not be created until all necessary fields are completed.
- When you are initially approved by the IRS for electronic filing you will be assigned a 5-character Transmitter Control Code (TCC). Make sure this code is correctly recorded in the TCC# field on this form.
Print: This allows you to print your electronic file setup information.
A. Prepare FIRE 1099 MISC/NEC This step will prepare the efile for the IRS FIRE portal. GMS updates the software each year according to the IRS specifications.
B. Prepare IRIS 1099 MISC/NEC This step will prepare the efile for the IRS IRIS portal. GMS updates the software each year according to the IRS specifications.
Note: If one or more 1099’s was omitted from the original electronic file submitted, Publication 1220 states: “Information returns omitted from the original file must not be coded as corrections. Submit these returns under a separate Payer “A” Record as original returns.” In the 1099 supplement, you can delete the vendors from the 1099 grid and just add in the ones omitted from the original file and prepare a new file to submit. Always make a backup before doing the above.
State E-File: Select this option if your state has an efile format that is different from the SSA. Only the states GMS has been made aware that don’t take the SSA format will be listed. Check your states 1099 e-file requirements.
State: Select the state from the drop-down box.
Note: Each state may have different criteria needed for the efile. The appropriate information needed will be displayed on the screen once the state is selected.
Save button: If you made changes to any information appearing on this screen, be certain to Save.
Prepare button: Click to prepare your file.
B. Prepare IRIS 1099 MISC/NEC This step will prepare the efile for the IRS IRIS portal. GMS updates the software each year according to the IRS specifications.
Note: If one or more 1099’s was omitted from the original electronic file submitted, Publication 1220 states: “Information returns omitted from the original file must not be coded as corrections. Submit these returns under a separate Payer “A” Record as original returns.” In the 1099 supplement, you can delete the vendors from the 1099 grid and just add in the ones omitted from the original file and prepare a new file to submit. Always make a backup before doing the above.
State E-File: Select this option if your state has an efile format that is different from the SSA. Only the states GMS has been made aware that don’t take the SSA format will be listed. Check your states 1099 e-file requirements.
State: Select the state from the drop-down box.
Note: Each state may have different criteria needed for the efile. The appropriate information needed will be displayed on the screen once the state is selected.
Save button: If you made changes to any information appearing on this screen, be certain to Save.
Prepare button: Click to prepare your file.
