1099 Processing in WinHAP

Transcription

1 1099 Processing in WinHAP 1099 processing in winhap allows you to generate, maintain and print 1099 s for landlords. It also enables you to create the electronic file for submission to the IRS. The purpose of this document is to provide instructions for filing Forms 1099 with the IRS for Landlords through winhap. Begin by clicking HMS Applications menu. Clicking 1099s from this menu yields the following options Page 1 of 12

2 Setup Control Information (By Group) For each of your Processing Groups, you must set up some pertinent filing information. Much of this will need to be added only once. However, you will need to update the Year for each of your groups before processing the 1099s for a new year. All the information will be converted to upper-case characters. The transmitter information is required for electronic filing. The payer name and address fields will copy down to the corresponding transmitter fields. However, the Contact person name and phone number must be supplied by you. Those under the 250-form threshold who choose to send paper 1099s can just type NONE in the contact and TCC transmitter fields since they cannot be left blank on the screen. Page 2 of 12

3 Setup Processing Groups Set up your 1099 Processing Group(s). In WinHAP you might want to separate your batches of 1099s into logical groups by projects. Or you may choose to keep all your projects together for simplicity. In either case, you must set up at least one group when you first receive the new 1099 module. Here is an example of the screen to link your projects to a 1099 processing group in WinHAP: Page 3 of 12

4 Pre-1099 Data Verification Before generating 1099s for your payees, you will want to verify the information you have set up for them. For example, you want to make sure each has a Tax ID Number (TIN) assigned, and check their names and addresses. A 1099 filing flag of Y for a landlord indicates that he should receive a This option provides you with a report you can view or print to make note of any necessary changes. Use your regular Payee maintenance screens in WinHAP to change any erroneous data, then run this option again to re-verify the corrections. Pre-1099 Payment Totals Before generating 1099s you will also want to check the YTD amounts that are calculated for each payee. This is the total that will go in Box 1 for each landlord. You can run this report in summary or detail to provide more information when trying to identify a discrepancy. Page 4 of 12

5 Want a report to compare your 1099 totals to? Go to WinHap, Payments, Display and choose the bank account. Choose the year you re processing and All from the calendar. Choose the options: Landlords, Computer Checks, Manual Checks, Direct Deposits, and YTD. (see below) Page 5 of 12

6 Generate 1099s When you have verified the name and payment information, you are ready to generate your 1099s! Select which Group to process and double-check the Year and Minimum Dollars displayed here. If either is incorrect you will need to take Option 2 to update this Control Information. Click the Generate button, which will create the 1099s using name and payment information from your database. If a payee s YTD amount is less than the minimum specified, that payee will not get a 1099 even if he was designated to receive one. You will be told how many 1099s were created. If a duplicate Tax ID Number (TIN) is found on multiple 1099s, you will be warned of that fact. You may want to Consolidate them into a single 1099 for filing (see Option 6). Page 6 of 12

7 Maintain 1099s If you discover that an amount is wrong, or that you missed a payee altogether, you can adjust the 1099s directly using this Maintenance option. Alternatively, you can enter the information in your originating database and take Option 5 again to re-generate the 1099s (be careful though, any maintenance you may have done will be wiped out by new 1099 generation). Any changes made via this Maintenance option do not affect your master landlord or vendor database, but only the 1099 information to be filed. It is also important to understand that you should not check the Corrected Return box just for making changes if you haven t yet submitted the electronic file to the IRS. You would only indicate a corrected return if this 1099 information was already filed and processed by IRS/MCC, but contained erroneous data that you must resubmit (such as an incorrect TIN). When you first bring up this option a default 1099 Processing Group will have been selected, and you will be in the New mode to allow you to add a If you want to work with a different 1099 Processing Group, or Find an already generated 1099, click those buttons, otherwise start entering the new payee information in the fields on the screen. Remember, this affects your 1099 file only, you are not adding to your landlord database. Page 7 of 12

8 The Save, Print, and Delete buttons on the right-hand side pertain only to the single 1099 displayed on the screen. In other words, you would not print all of your 1099s from this maintenance option (use Option 7 instead). To assist in Finding a 1099, the following screen is presented. Click the Search button to see the list of 1099 payees. Entering characters in the Name, Tax ID, or Account fields narrows the scope of your search if you know the specific 1099 you want (the Account Nr is a landlord s Lookup name). By clicking the Sort button you can further tailor your search by sorting the payees in a particular order. When you have Picked a Payee, you can make changes and Save, you may Print that individual 1099, or you can Delete it. Page 8 of 12

9 CONSOLIDATE OPTION When you click on the Consolidate button on the Maintenance Screen, you will see Tax IDs that have duplicated 1099s. For example, this would occur if you had a landlord that was entered twice, each with a different check address. That would cause 1099 generation to create two separate 1099s for him. You will want to combine those two into one total 1099 for filing. Or perhaps you made a typo and entered someone else s Tax ID for a payee and didn t catch the error on the Pre-Data Verification Report. In that case you would NOT want to consolidate them but rather correct one of the TINs. Clicking a Tax ID Number in the left-hand table will bring up the table on the right to provide more detail for you to make the determination. Click the consolidate check box to include that TIN or not when Consolidating. Page 9 of 12

10 Note that duplicate 1099s that are grouped with no Tax ID CANNOT be combined. They are unrelated and you will not be able to X the box for including in the Consolidate routine. You should input an EIN or SSN number for those payees (via Option 6 - Maintain 1099s). Print 1099s When you are completely satisfied with a group of 1099s you can Print them on Forms MISC. If you choose the Corrected submission type, only those 1099s that you indicated as a Corrected Return in the Maintenance option will be printed and the CORRECTED box at the top of the form will have an X. We recommend printing the Line-Up first. If your printer s default margins do not match the form perfectly, call the support department to adjust the 1099 template for you. Page 10 of 12

11 Electronic File 1099s Creating the Electronic 1099 file for the IRS is an easy task. Select the 1099 Processing Group and specify if this is an Original filing, or some Corrected 1099s from those you already sent to them but were returned with errors. Choose where you want the file (named IRSTAX) to be placed on your system by clicking each subdirectory to get that node on the path, and then click the Create File button. After the file is made you can copy it to a diskette in your a: drive. The diskette can be sent to the Internal Revenue Service or kept for a backup. Page 11 of 12

12 Transmittal Totals You can run this report to provide total amounts and the number of payee records in your 1099 file. This may be of interest to you, as it will assist in filling out Form 4804, Transmittal of Information Returns, which must accompany your electronic file, shipment. Or you can use it as a tool to confirm the accuracy of the 1099s. This report can be run anytime after Option 5 - Generate 1099s, after performing maintenance in Option 6. Specify the same Submission Type as you did in Electronic File creation so you are dealing with the same batch of 1099s. Page 12 of 12