1099 Prep & Processing

Transcription

1 1099 Prep & Processing

2 Welcome Keith Kucler

3 1099 Preparation Checklist Order current year 1099-M forms Verify the latest release of MUNIS software and yearend specific updates have been loaded to ensure the appropriate law changes will be reflected Ensure you have obtained all 1099 payment information from schools (i.e. referees, umpires, etc.) Have you received all W-9 forms from vendors? Back-up the MUNIS database ** DO NOT continue until you have balanced ALL data **

4 1099 Balancing The objective of 1099 balancing is to account for ALL nonemployee compensation paid, validating the resulting value against the annual returns PRIOR to filing

5 1099 Preparation Checklist (cont'd) Create 1099 Summary Records Run the 1099 Register Review and edit data in 1099 F/M Print 1099s using 1099 Forms Print Create Federal 1099 Magnetic media file (required if 250 or more)

6 Who should receive a 1099? Typical recipients: create Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate Gross proceeds of $600 or more paid to an attorney

7 Typical 1099 Recipients Box 1. Rents $600 or more for all types of rents, such as any of the following: Real estate rentals paid for office space. However, you do not have to report these payments on Form 1099-MISC if you paid them to a real estate agent. But the real estate agent must use Form 1099-MISC to report the rent paid over to the property owner. Machine rentals (for example, renting a bulldozer to level your parking lot). If the machine rental is part of a contract that includes both the use of the machine and the operator, prorate the rental between the rent of the machine (report that in box 1) and the operator's charge (report that as nonemployee compensation in box 7).

8 Typical 1099 Recipients Box 7. Nonemployee Compensation Enter nonemployee compensation of $600 or more. Include fees, commissions, prizes and awards for services performed as a nonemployee, other forms of compensation for services performed for your trade or business by an individual who is not your employee

9 1099 Balancing 14

10 Find AP 1099 Functions menu 1099 Balancing (cont d)

11 Select Vendor 1099 Summary 1099 Balancing (cont d)

12 1099 Balancing (cont d) Find all records for year 2016

13 1099 Balancing (cont d) Dataset returns records that have received 1099 payments for year, based on AP checks

14 1099 Balancing (cont d) Review listing to ensure you have accounted for all non-employee compensation payments Ensure you have obtained all 1099 payment information from schools (i.e. referees, umpires, etc.) While one school may have only paid an individual $100, if the individual was paid $600 or more throughout the entire district, he/she will need to receive a 1099-M

15 1099 Balancing (cont d) If you have individuals paid $600 or more, who need to be added to the system for 1099 processing, you will need to add them as a Vendor

16 Be sure to list either the Social Security number or FED ID 1099 Balancing (cont d)

17 1099 Balancing (cont d) On the General tab, be sure to check 1099 Vendor and set your default 1099 code. This will default future invoice payments to the appropriate 1099 box (Actual code descriptions determined by district)

18 1099 Balancing (cont d) Be sure to send out and receive a signed W-9 form from the recipient. While the form is paper, these check boxes are a quick way to review the progress status. This form is equivalent to the W-4 form used for employees.

19 1099 Balancing (cont d) Nov, 20, 2014

20 1099 Balancing (cont d) Once you have added your additional 1099 recipients, return to 1099 Vendor Summary to add their compensation

21 1099 Balancing (cont'd) Add a record for each missing recipient 1099 amount listed should be total 2016 annual amount paid 2014

22 1099 Balancing (cont d) Once all recipients have been added, return to Vendor 1099 Summary for further review

23 1099 Balancing (cont d) Rerun your Find year 2016 records

24 1099 Balancing (cont'd) Newly added recipients will be reflected in dataset If your original payments were made tied to a department or location, you may have multiple entries per vendor

25 1099 Balancing (cont d) If you would like detailed information for each of the payments made to a vendor through the MUNIS AP process, select Vendor 1099 Detail

26 1099 Balancing (cont d) Find all records for year 2016

27 1099 Balancing (cont d) Dataset returns records that have received 1099 payments for year, based on AP checks You may want to print a copy for record-keeping

28 1099 Balancing (cont'd) Once you have determined all vendors have been properly recorded, you can move to 1099-M Processing

29 1099 Balancing (cont'd) Define, then enter 2016, the minimum amount needed before a 1099 is produced (typically $600.00), and map your 1099 code to the box you wish to print on

30 1099 Balancing (cont'd) Once you have defined your dataset, create a report. This report will list all recipients based on the minimum amount you entered or select individual recipients

31 1099 Balancing (cont'd) The report will also reflect any vendors in error i.e. missing ID numbers, address, etc., required for the 1099 filing Should you find any missing information, return to the Vendors menu to correct

32 1099 Balancing (cont'd) Once you have an error-free report, you can now create Forms

33 You will need to Define your form output 1099 Balancing (cont'd)

34 1099 Balancing (cont'd) Enter the required data fields (bold font)

35 1099 Balancing (cont'd) The Form ID listed at the bottom of the screen refers to the print templates in MUNIS. Be sure to match the output with the forms you have purchased

36 You have an opportunity to test the alignment of the output, prior to the printing of the actual 1099 forms 1099 Balancing (cont'd)

37 1099 Balancing (cont'd) The alignment form looks like this Hold this output against an actual form to ensure that your data prints in the correct boxes

38 If you need to move data around on the output, you will need to go to Forms Definitions and adjust the template 1099 Balancing (cont'd)

39 Find the template you want to use Update appropriate field Sz = character width of field Ln = line on page (top to bottom) Col = column field starts (left to right) 1099 Balancing (cont'd)

40 1099 Balancing (cont'd) Rerun your Align output to review fields changes Once modifications have been completed, you will need to create at least three sets of 1099-M forms one for FED (Red Copy A) filing, one for recipient filing (Copy B) and one for recipient copy (Copy 2) Copy 1 (For State Department) is needed when required by the State 1099 Forms are only required to be submitted to Kentucky DOR when Kentucky tax is withheld (revenue.ky.gov)

41 1099 Balancing (cont'd) When filing paper returns, be sure include Form 1096 This is a recap of the total amount and number of forms being reported with the filing 14

42 1099 Balancing (cont'd) Filing deadlines: Report to recipient by February 1, 2017 Report to IRS by February 28, 2017 Electronic filing REQUIRED, if 250 or more returns being filed by March 31, 2017 Filing-Information-Returns-Electronically-(FIRE)

43 1099 Balancing (cont'd) If you wish to file electronically, you will need to go back to your 1099-M Processing menu, rerun your Define then go to Electronic File

44 Enter the required data fields (bold font) and accept 1099 Balancing (cont'd)

45 Click on the Save file icon 1099 Balancing (cont'd) Lower portion of screen will show where MUNIS has created your file

46 1099 Balancing (cont'd) Enter the TIN or federal identification number (FIN) Enter a Control Code assigned by the IRS Transmitter s Media Number

47 1099 Balancing (cont'd) To retrieve your file, use your file transfer utility. The program menu name is Transfer File To/From Cloud and can be found in Departmental Functions menu Retrieve the saved file, in this case and save it to your local drive

48 1099 Balancing (cont'd) Go to Sign on to website Upload the 1099 file you just created

49 For additional tips, checklists, and other information for MUNIS 1099 Processing MUNIS KnowledgeBase IRS.gov website

50 Comments Questions

51 Contact Information Keith Kucler