Year End 2014: AP 1099 Processing

Transcription

1 Year End 2014: AP 1099 Processing Viewpoint, Viewpoint Construction Software, Viewpoint Vista Software, Vista by Viewpoint, ProContractor by Viewpoint, Construction Imaging, Mobile Field Manager, 4Projects, Viewpoint For Project Collaboration and Viewpoint For Estimating are trademarks or registered trademarks of Viewpoint, Inc., in the United States and/or other countries. Other names and brands may be claimed as the property of others.

2 1 Table of Contents 1099 Overview Setup... 3 AP 1099 Types... 3 AP Vendor Master... 3 IRS... 5 AP 1099 Reports... 6 AP 1099 Processing Menu... 7 Edit Transactions... 7 AP 1099 Edit Totals... 8 AP 1099 Download Printing 1099 s Printing the 1099 Report Correcting 1099 Information... 13

3 Overview Accounts Payable provides options to accumulate data and print IRS Form Although there are multiple types of 1099 forms, Viewpoint Vista Software currently only provides the ability to print the 1099 Miscellaneous Income, Dividend & Distributions, and Interest Income forms. These 1099 forms are informational returns that must be filed with the IRS to report miscellaneous income, interest, and dividend/distribution payments made to non-employees (e.g. vendors). The returns allow the IRS to match the payments with the recipient s income tax return to see whether the payments were included as income. The following image shows all steps that should be completed for vendor payments that are to be reported on 1099 forms Setup AP 1099 Reports AP 1099 Processing Correcting Returns Read IRS Publication 1220 File IRS Form 4419 Vista Setup AP 1099 Report AP 1099 Vendors Less Than Minimum Edit Transactions Edit Totals Download Print Forms Edit Vendor & Totals Edit Totals

4 Setup Complete the following steps prior to processing 1099s within Viewpoint. AP 1099 Types 1. From the Accounts Payable module s Programs folder open the AP 1099 Types form. Note: Viewpoint Vista Software provides the standard MISC (Miscellaneous) 1099 type, but you will need to set up any others that your company uses types are used for accumulating 1099 amounts. If you will be filing 1099s via magnetic media, acceptable 1099 types are MISC (Miscellaneous Income), INT (Interest Income), and DIV (Dividends/Distributions). If you are only using 1099 types for informational or reporting purposes, any type is acceptable. 2. In the 1099 Type field, enter up to 10 characters for the type and then enter a description in the Description field. 3. When finished, Save and Close the form. Figure A. AP 1099 Types form AP Vendor Master For each vendor receiving a 1099, the 1099 Info section needs to be completed on the Add l Info tab of the AP Vendor Master form. 1. From the Accounts Payable module s Programs folder, open the AP Vendor Master form. 2. Go to the Add l Info tab. See Figure B. 3. Check the Subject to 1099 reporting box. The system enables the 1099 Type, Box#, Proprietor, Include in 1099 Processing, and Mailing Address Seq fields.

5 4 NOTE: If you are unsure of whether a vendor is subject to 1099 reporting, you should check the Subject to 1099 Reporting box. This ensures that all transactions posted to this vendor are automatically flagged to be included in the vendor's 1099 totals. If you later learn that this vendor is not subject to 1099 reporting, you can uncheck the box and 1099 s will not print. You do not need to change any transactions. They will show on the AP 1099 Report, but will include a message stating that 'transactions subject to 1099 report exist, but no 1099 forms will print'. 4. In the 1099 Type field, enter the 1099 type that the system will use to track payable amounts subject to 1099 reporting for this vendor. Press F4 for a list of 1099 types. 5. In the Box# field, specify the box number (1-18) from the 1099 form where 1099 amounts will accumulate and print for this vendor. 6. Enter the vendor s federal tax identification number in the Tax ID# field. This number prints on the 1099 form. 7. Enter the proprietor (owner) name, if any, in the Proprietor field. You must enter the name as "Last Name, First Name" to enable proper 1099 electronic filing. This name, along with the vendor s name, is used to aid in Tax ID# reconciliation, and is typically used when an individual is to receive the 1099, but uses a business name (dba) for other purposes. Check the Include in 1099 Processing (ignore minimum) box if the system is to include a vendor's totals when processing (downloading or printing) 1099s, regardless of whether the vendor's payment is less than the specified minimum payment amount. NOTE: If you do not check this box, the system will only print a 1099 for the vendor if the vendor's payment is equal to or greater than the value in the Minimum Payment Amount field (AP 1099 Download). 8. If you need to send the 1099 to an address other than the payment address specified for the vendor on the Info tab, enter a mailing address sequence in the Mailing Address Seq field or press F4 to see a list of sequences. These sequences are maintained on the Add'l Addresses tab of AP Vendor Master. If you enter a sequence in this field, the system will use the associated address when printing 1099s or generating electronic files with AP 1099 Download. 9. Save the record as normal. Note: Set this up prior to processing invoices. If this is not set up prior to processing invoices, see the AP 1099 Edit Totals and AP 1099 Edit Transactions sections of this Job Aid for further assistance.

6 5 Figure B. AP Vendor Master Add l Info tab IRS 1. Read IRS Publication 1220 ( Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically ) for complete instructions about filing requirements. 2. File Form 4419 ( Application for Filing Information Returns Electronically ) to receive approval from the IRS to file electronically. This form must be filed with the IRS at least 30 days prior to the due date of the returns. Once approved, the IRS will send a Transmitter Control Code (TCC) number. The IRS will not accept returns without this number. 3. Find the Payer Name Control Code on the mailing label of the 1099 Information Package mailed by the IRS. This number is required to process 1099s electronically.

7 6 AP 1099 Reports At the calendar year end, print the AP 1099 Report (summarized or detailed) to obtain a list of each vendor s YTD 1099 amount, and verify the following: The YTD 1099 amounts are accurate (if you printed the summarized version of the report, you may find it necessary to print this report in detail to see if specific transactions are included/excluded). The vendor s address is present and correct. The vendor s Tax ID#, 1099 Type and 1099 Box are present and correct. Remember, if you are going to print or magnetically file 1099s, only totals accumulated under 1099 types MISC, INT, or DIV will be included. Note: This report only shows vendors with 1099 amounts equal to or greater than the specified 'Minimum Payment Amount', or vendors with 1099 amounts less than the minimum amount where the Include in 1099 Processing (Ignore Minimum) box is checked in AP Vendor Master. (The 'minimum amount' restriction does not apply to dividend amounts because dividends do not have a minimum amount and are always included in this report.) You can review all vendors with totals less than the minimum amount, regardless of the Include in 1099 Processing (Ignore Minimum) setting, using the "AP 1099 Vendors Less Than Minimum" report (AP Reports menu). 1. To begin the 1099 process, go to the Accounts Payable module, Reports folder, and open the AP 1099 Report. 2. When the AP 1099 Report Launcher appears, enter the report criteria and select either Preview or Print to view your report. 3. The AP 1099 Report will show a list of all total amounts for a selected vendor range and calendar year. The report will print vendor totals for MISC or INT type 1099s where the amounts are greater than or equal to the specified Minimum Payment Amount or where the Include in 1099 Processing (Ignore Minimum) flag is checked in the AP Vendor Master. All DIV type 1099 amounts will print for vendors who are subject to 1099 printing. Use this report to review for accuracy. 4. Optionally, run the AP 1099 Vendors Less Than Minimum report, which can also be found in the Accounts Payable Reports folder. This report can be run to identify any vendors that need to receive a 1099 even though their payment amount is less than the specified Minimum Payment Amount. If any vendors are identified that need 1099s even though their payment amount is less than the minimum entered, check Include in 1099 Processing (ignore minimum) in the AP Vendor Master. You can then rerun the AP 1099 Report to see the results and then proceed with the 1099 processing.

8 7 AP 1099 Processing Menu The AP 1099 Processing menu shows you all of the different forms that are used in 1099 processing. These forms can only be accessed from this window and are not available from the AP Programs menu. The four options that are available within the AP 1099 Processing menu are: Edit Transactions: This menu option accesses the AP 1099 Transaction Edit form. Edit Totals: This menu option accesses the AP 1099 Totals form Download: This menu option accesses the AP 1099 Download form. Print: Allows you to print the 1099 Report, as well as Copy B (Recipient) and Copy C (Payer or State Copy) of the 1099 Miscellaneous, Dividend, and/or Interest Print forms. Federal 1099s must be filed via magnetic media. To access this menu, in the Accounts Payable module Programs folder, open the AP 1099 Processing Menu. See Figure C. Edit Transactions Figure C. AP 1099 Processing Menu This form can only be accessed by clicking the Edit Transactions button from the AP 1099 Processing menu. Use this form to review a vendor s transactions for a given expense month or paid month and to change the 1099 information as necessary information is defined when a transaction is posted to the vendor in AP Transaction Entry and/or AP Recurring Invoices. If you have not yet paid the invoice, and the month in which the transaction was posted is still open, then you can edit the 1099 information in the original posting form. However, once payment has been made, and/or the month is closed, any changes to the 1099 information must be made in this form. 1. To edit transactions, within the AP 1099 Processing menu, select the Edit Transactions button. This will open the AP 1099 Edit Transactions form.

9 8 2. In this form, enter the Year Ending, Vendor and the Expense or Paid Month by which to select transactions. Note: The screen will automatically default the Expense Month input. So, if you wish to select transactions by paid month, you must check the Select by Paid Mth checkbox. 3. Once you have entered all transaction criteria click Refresh to display all of the valid transactions for the vendor in the transaction grid. Within the grid you will see information such as the transaction number, AP Reference number, invoice date, etc. The 1099 information shown for each transaction is the only information that should be edited in this form. See Figure D. 1099: When marked Y, the 1099 field includes the transaction amount in the vendor s year to-date 1099 amount. If marked N, the transaction amount is excluded from the vendor s year-to-date 1099 amount. Type: This field is used to identify the transaction s 1099 type. If printing or electronically filing 1099s, use 1099 types MISC, DIV, or INT, as only totals accumulated under these types are included. Types are defined in AP 1099 Types. Box #: This field is used to specify the 1099 box in which the total should be accumulated. Tip! All changes made to this information are saved automatically when the form is closed. AP 1099 Edit Totals Figure D. AP 1099 Edit Transactions This form is accessed by clicking the Edit Totals button from the AP 1099 Processing menu. Use this form to maintain 1099 totals by vendor, calendar year, and 1099 type amounts are accumulated automatically as transactions are paid. These amounts can be edited manually with this program. You can also use this form to correct 1099 information.

10 9 Although 1099 amounts are normally accumulated to the 1099 Type and Box # specified for each vendor in the AP Vendor Master, 1099 amounts can be accumulated to whatever 1099 Type and Box # is appropriate for each transaction defaults may be overridden when entering transactions in AP Transaction Entry and/or AP Recurring Invoices. Note: The description/label for each field on this form changes depending on the 1099 type selected. 1. To edit 1099 totals, within the AP 1099 Processing menu, select the Edit Totals button. This will open the AP 1099 Edit Totals form. 2. In this form, enter the calendar Year Ending month/year for which you want to view/adjust 1099 totals. 3. In the Vendor field, specify the vendor you want to view/adjust 1099 totals for. 4. Enter the 1099 Type or select it from an F4 lookup. 5. After you have entered the header information, the boxes will then populate with the total yearto-date 1099 amounts that have been accumulated and are to be printed in that box for the specified vendor and form. Totals are accumulated as transactions are paid, and include the actual paid amount (less actual discounts taken). You can adjust these totals as needed. See Figure E. Figure E. AP 1099 Edit Totals Tip! Use the AP Vendor Payment History report to help determine what a vendor s 1099 total should be if the vendor was not set up as a 1099 vendor prior to processing invoices.

11 10 AP 1099 Download This form is accessed by clicking the Download button from the AP 1099 Processing menu. Use this form to create the file(s) needed for electronic filing of Federal 1099s (the required method when using Viewpoint Vista Software). Most fields in the 1099 Download form must be completed before you can create the 1099 electronic file(s). If any of the required information is missing, the Download button at the bottom of the form is disabled until the required information is entered. 1. To create the electronic file, within the AP 1099 Processing menu, select the Download button. This will open the AP 1099 Download form. See Figure F. 2. In this form, enter the Calendar Year Ending Month. 3. Enter the Payer Name Control code. This is a code (up to four characters) that was assigned to you by the IRS. This code can be obtained from the mailing label on the 1099 Information Package that was mailed to you by the IRS. If you did not receive a packet from the IRS, you can use the first four characters of your company name, excluding The. For example, if the company name is The Smith Corporation, you would enter SMIT as the payer name control code. 4. In the Transmitter Control Code field, enter the 5-character (alpha/numeric) Transmitter Control Code assigned to you by the IRS/MCC. You must file application Form 4419 with the IRS in order to receive this number. 5. The Combined Federal/State Filer checkbox is only checked if you are filing State returns with your Federal returns. The system inserts special state codes into the 1099 file so that the IRS can automatically provide your 1099 information to participating states. For a list of participating states, please refer to the F1 help. 6. Check the Test File box if you want to create a test file with this run. Do not check this box if you want to create the actual 1099 file that will be sent to the IRS. 7. In the Minimum Payment Amount field, enter the minimum payment amount to determine which vendors will be included in this 1099 file (as determined by the IRS). Vendors whose yearto-date totals are less than this amount will be excluded from this 1099 file. However, if a vendor s Include in 1099 Processing (Ignore Minimum) option is set to checked in the AP Vendor Master form, a 1099 will be printed for that vendor, regardless of whether the vendor s totals are less than this amount. 8. Enter the name of the person that should be contacted if there are any problems with this filing in the Contact Name field. 9. After you have entered the Contact Name, you can then specify the phone number and address for that contact. 10. Check the Corrected Filing box if you want to include corrected 1099s in the electronic file.

12 If you check the Corrected Filing checkbox, the system will enable the 'is this a prior year corrected filing?' field. You can check this if the corrected filing(s) are for a year prior to the current filing year. 12. Once all information has been entered, you can click the Download button to display the Save Export File As window. Figure F. AP 1099 Download 13. When the Save Export File As window appears, select the directory to copy the files to. Make a note of the location you save it to so that you can find the file easily after it is saved. The number of files created depends on the number of 1099 returns you have. 14. Save the file. The file name defaults as IRSTax, as required by the IRS. However, this may change at any time, so refer to the filing specifications (IRS Publication 1220) to determine the correct file name to use. If there are multiple files, a sequential number identifies each file (e.g., IRSTax1.txt, IRSTax2.txt, etc.) 15. Remove the.txt extension from the file name. The IRS requires that the file name be IRSTAX. Best Practice Tip! Create a copy of the file and then rename the copy to IRSTAX. 16. If multiple files exist, copy each file to a separate directory. 17. Send the file to the IRS.

13 12 Printing 1099 s The Print feature of the AP 1099 Processing Menu is used to print 1099 miscellaneous laser forms. Federal 1099s are not printed using this feature, as they must be filed electronically or via magnetic media when using Viewpoint Vista Software. However, you can use this feature to print the Recipient, Payer and State 1099s. The Report Selection box allows you to select which form you want to print. Miscellaneous Print Form Copy B (for Recipient) Miscellaneous Print Form Copy C (for Payer or the State) Dividend Print Form Copy B (for Recipient) Dividend Print Form Copy C (for Payer) Interest Print Form B (for Recipient) Interest Print Form C (for Payer) The following steps will walk you through how to print the forms listed above: 1. To start the 1099 print process, within the AP 1099 Processing menu, select the form you wish to print from the dropdown menu and click the Print button. 2. This will then bring up the Print 1099 Launcher window. In here you can specify the Company, Year Ending Month, the range of vendors for which you are printing the 1099s and the minimum payment amount (Miscellaneous and Interest forms only). If you are printing corrected 1099s, be sure to check the Print Corrected 1099s Only box. 3. Once you have entered all of the Form criteria, click to print your form (or preview or export). Best Practice Tip! Print the 1099s on plain paper before the forms; this gives you the chance to ensure that the forms being used will work with our print alignment. The Miscellaneous and Dividend print forms will print two 1099s to a page, and the Interest print form will print three to a page. Printing the 1099 Report You are also able to use the Print feature to print the AP 1099 Report. To print from the 1099 Processing Menu, simply select the 1099 Report option in the dropdown menu and select print. The 1099 Report can be printed as either a detailed or summarized report of 1099 information. When printing a summarized report, only year-to-date totals for each box on the 1099 (from AP 1099 Totals) will display. When printing a detailed report, additional information displays, which includes paid transactions for which the Include in 1099 Totals option has been checked. Both the summary and detailed versions of the 1099 Report include a 1099 Form Totals section (at the end of the report) displaying how many forms are needed for each type (i.e. DIV, MISC, and INT). Additionally, a brief note is included to indicate how many forms print per page of each form type. For more information on print the 1099 report, please refer to the AP 1099 Report section of this Job Aid.

14 13 Correcting 1099 Information In the event that you need to submit a corrected 1099 electronic file, use the AP 1099 Totals form to update any applicable information. Once you correct information in AP 1099 Totals, use AP 1099 Download to create a new electronic file that can be sent to the IRS. The new electronic file only contains information for updated 1099s. When correcting 1099 information, you can correct information contained on the 1099, vendor information, or both. The following instructions detail how to use the AP 1099 Totals form to update 1099 information. 1. To begin the process of correcting 1099 information, go to the Accounts Payable module, Programs folder, and open the AP Vendor Master form to update vendor information as needed. 2. After you have made any necessary edits to the vendor record, open the AP 1099 Processing Menu. 3. In the 1099 Processing Menu, select the Edit Totals option. 4. In Edit Totals, enter the correct information in the appropriate boxes. 5. Once all information has been edited on the Info tab, click Save. 6. Next, move to the Corrected Filing tab. On this tab, check the Corrected Filing box. The system will then enable the Error Type section of the form. See Figure G. 7. In the Error Type section, select the appropriate radio button. The following options are available: a Info: Select this radio button if you are updating only 1099 totals information b. Vendor/1099 Info: Select this radio button if you are updating both totals information and vendor information. 8. The system will display the original vendor information in the Original Vendor Information section of the form. It will also display the current information from the AP Vendor Master in the Current Vendor Information section of the form. This allows you to check to make sure any change made to the AP Vendor Master is going to be updated on the Corrected When you have entered all information on the Corrected Filing tab, click Save. You are then able to file the electronic file and print any copies as needed. 10. See the sections titled AP 1099 Download and Printing 1099s for instructions on how to recreate the electronic file and corrected 1099 forms. Note: When printing corrected 1099s, the 1099 report displays ***CORRECTED*** at the end of the 1099 Type field.

15 14 Figure G. The Corrected Filing tab