Since calendar year 2017 crosses two fiscal years, transactions will be selected from both File ID C and 7 when creating 1099s.

Transcription

1 1

2 Since calendar year 2017 crosses two fiscal years, transactions will be selected from both File ID C and 7 when creating 1099s. 2

3 Due dates (from 2017 Form 1099 MISC Instructions): Form 1099 MISC to be filed on or before January 31, 2018, when you are reporting nonemployee compensation payments in box 7. The due date for furnishing payee statements (Copy B) by January 31. 3

4 The application for Filing Information Returns Electronically (FIRE) can be obtained by calling Tax Form or is available by going to pubs. For further information visit From this page, click the FIRE Logon link to log into FIRE production to send returns. The due date for filing Forms is January 31 st regardless of how you file. 4

5 1099 Misc form Copy A. Districts who are NOT filing electronically must submit Copy A for each recipient with Form 1096 to the IRS by January 31,

6 Form 1096 The form is submitted with the 1099 forms Copy A. You must send Copy A Form 1099 Misc for each recipient to the IRS with Form 1096, Annual Summary and Transmittal of U.S. Information Returns. NOTE: Do not use this form if you are filing electronically 6

7 1099 Misc form Copy B, for Recipient Districts must provide this form to applicable vendors by January 31 st. 7

8 Review Responsibilities of an employer and an independent contractor. As the employer the district must obtain a W 9 form from the vendor to determine their 1099 eligibility status and issue a 1099 to vendors who are eligible. When you receive a W 9 from the vendor, be sure to review their: Legal business name Complete address Type of taxpayer, which will help you determine whether the vendor is 1099 eligible. And verify they have signed the W 9. The responsibility of the vendor is to provide a completed W 9 form to your district. NOTE: IRS provides a TIN Matching System, which allows employers to submit a tax payer identification (TIN) and name combination to be matched against IRS records. For more information on the TIN Matching System, refer to Publication 2108 A On Line Taxpayer Identification Number (TIN) Matching Program. 8

9 This is a print screen of a W 9 form. Pay close attention to the type of taxpayer. Vendors that should receive a 1099 include: Individuals/sole proprietors or single member LLC Partnerships Attorneys regardless of tax classification (box 7 and box 14) Limited liability companies filing as partnership Medical and health care payments reported in box 6 Vendors that should not receive a 1099 include: C Corporation S Corporation Limited liability companies filing as C corporation or S corporation 9

10 10

11 11

12 12

13 Here is a quick overview of the most common 1099 boxes. Examples of reportable payments: Box 1. Rents Real estate rentals (unless paid to real estate agent) Equipment rentals (i.e. copier) Box 2. Royalties such as patents, copyrights, trade names, and trademarks One Act Play Sheet music Copyrights Box 3. Other Income Prizes and awards that are not for services performed. Do not include prizes and awards paid to employees. 13

14 Box 4: For example, persons who have not furnished their TINs to you are subject to withholding on payments required to be reported in boxes 1, 2 (net of severance taxes), 3, 5 (to the extent paid in cash), 6, 7, 8, 10, and 14. For more information on backup withholding, refer to the Inst 1099 General Instructions on the IRS website under Forms and Publications. 14

15 Examples of reportable payments: Box 6. Medical & Health Care Payments Doctor fees, drug testing, lab fees, physical therapy, etc. Report payments to individuals, partnerships, and corporations. Do not report payments to tax exempt hospitals. Box 7. Nonemployee Compensation Payment for services of a person who is not your employee, including payment for parts or materials used to perform the services. Professional service fees (i.e. attorneys, accountants, contractors, consultants, etc.) Prizes and awards for services performed as a non employee. NOTE: Form 1099 MISC to be filed on or before January 31, when you are reporting nonemployee compensation payments in box 7, Box 14. Gross Proceeds Paid to an Attorney Gross proceeds paid to an attorney as part of a legal settlement or court order. 15

16 Steps to process 1099s in TxEIS 16

17 Verify the following information in Finance. Go to Tables > District Finance Options page to verify the following fields: Current Finance Fiscal Year: 8 School Year : Previous Year File ID: 7 Starting Accounting Period: 09 17

18 The Create 1099 Work Table utility is used to create a 1099 work table from the check transactions. Prior year 1099 work table will need to be deleted before creating the new year 1099 work table. Go to the Utilities > Create 1099 Work Table page in File ID C to clear all previous year 1099 transactions from the Working Table. 1. Leave the Beginning Date and Ending Date fields zero so all data is deleted. If no dates are specified, all 1099 work table transactions are deleted. 2. Select Use 1099 Object Codes Tables. 3. Click Delete. 18

19 Go to the Tables > 1099 Object Codes page in File ID C to review all object codes that were used when paying 1099 eligible vendors. Add and/or delete object codes as needed. Generally, 62XX accounts are included. NOTE: The Type Payment field determines which box the dollar amount will be added to on the actual 1099 form. The 1099 Instructions on the IRS website will help you determine what payment type option best suits the Object Description. 19

20 Go to the Tables > 1099 Object Codes page in File ID 7 to add the same object codes as File ID C, since amounts spent from January 1, 2017 August 31, 2017 are documented in File ID 7. 20

21 Go to the Reports > User Created Reports > Vendor Report page to ensure that vendors eligible for a 1099 are set up correctly. 1. Select the following fields: Vendor Number Active/Inactive Vendor Name EIS/SSN Number Type 1099 Eligible W9 Received Date, if you maintain this field 2. Once the report is created, sort by the 1099 Eligible Flag. 3. Verify that vendors with a flag are 1099 eligible and that they have an EIN/SSN. 4. Scroll through the vendors that do not have the flag to make sure this is accurate as well. 21

22 In Steps 5a 5c, we will be going over screens to maintain and edit vendor data. Go to the Maintenance > Vendor Information page to make corrections as needed to vendors. NOTE: This screen is shared between File ID C and 7. 22

23 OPTIONAL: If you have the same vendor with two different vendor numbers, use the Merge Vendor Number utility to move all vendor information from one vendor to another vendor. Go to the Utilities > Merge Vendor Number page: 1. Input the From Vendor and then click Refresh From Vendor. 2. Input the To Vendor and then click Refresh To Vendor. 3. Click Execute. 4. When prompted to continue, click Yes both times. 5. When prompted to create a backup, click Yes. NOTES When you select to merge from vendor A to vendor B, the transactions for vendor A are combined with vendor B's transactions, and then vendor A is deleted. If a vendor has been used in a previous file ID, the vendor cannot be merged until that file ID has been deleted. 23

24 OPTIONAL: To delete or inactivate vendors that are no longer being used, go to the Utilities > Fiscal Year Processing > Mass Delete Vendors page: 1. Select one or both of the following fields: Delete vendors that are not referenced by transactions across all File IDs. Inactivate active vendors that are not referenced by transactions in File IDs C and Previous Year File ID. 2. Click Execute. 3. One of the following reports will display: If Delete vendors that are not referenced by transactions across all File IDs is selected, the Mass Delete Vendor Report displays and includes all vendors that will be deleted. If Inactivate active vendors that are not referenced by transactions in File IDs "C" and Previous Year File ID is selected, the Inactivate Active Vendor Report displays and includes all active vendors that will become inactive. If both options are selected, the Mass Delete Vendor Report and the Inactivate Active Vendor Report display. If everything looks correct, click Process. 4. When prompted to create a backup, click Yes. 24

25 Go the Utilities > Create 1099 Work Table page in File ID C to create the 1099 work table. 1. In the Beginning Date field enter In the Ending Date field enter Select Use 1099 Object Codes Table. 4. Click Add. 5. A message is populated showing how many rows are added to 1099 work table. The following transactions are not extracted: Check transactions that have been reversed or voided. Check transactions that do not have a check date. Check transactions that have a check number of PAYABL or REVRSL. Check transactions for vendors not marked as 1099 eligible. 25

26 Go to the Reports > Finance Reports > Vendor/Purchase Order Reports page to run the FIN Report. This preview report will list every vendor that is set up as 1099 Eligible in the Vendor Info screen and has transactions using any of the object codes that were set up in the Object Code Tables in File ID C and 7. Parameters: 1. Sort by Alpha (N). 2. Print the Account Nbr (A). 3. Include the EIN/SSN on the report (Y). **We suggest to print the report sorting by EIN/SSN (N). By sorting by the vendor s EIN/SSN the vendors with no EIN/SSN will be at the top. These vendors will not receive a 1099 (a 1099 will not print), so verify this is correct. 26

27 NOTE: A 1099 MISC form is generated for a vendor only if at least one of the following conditions applies: The 1099 Eligible and EIN/SSN fields are selected for the vendor on the Finance > Maintenance > Vendor Information > Vendor Name/Address page. The total of a vendor s 1099 work table transactions is greater than or equal to $ Any amount exists in Box 4 (Federal income tax withheld) or Box 14 (Gross proceeds paid to an attorney). The amount in Box 2 (Royalties) is greater than or equal to $ If a vendor is not on this report that should be, you will need to make sure the Maintenance > Vendor Information page has: EIN/SSN 1099 Eligible box checked Object code used to pay the vendor is in the Object Code Tables in both File IDs. If transactions exist from object codes that you do not want included in the 1099 s for all vendors then you can delete those object codes from both File ID Object Code Tables (Step 3). Then repeat step 6 and step 7. Verify vendors on your 1099 repot. If no changes are required then proceed. 26

28 If you need to verify, add, delete, or update vendor transactions, go to the Maintenance > 1099 Record Maintenance page. Only transactions with 1099 Object Codes will display. The amounts shown will only include transactions that happened in the 2017 calendar year. Enter the vendor number and Retrieve to see ALL transactions for that vendor. Delete and/or Add any transaction(s) that should not be reported. (i.e. reimbursements). NOTE: Student Activity Funds If the Student Activity check transactions are not maintained in TxEIS, you will need to manually enter information on any vendors involved with transactions that require a 1099 on this page. After making changes, print the 1099 report again to verify the data one last time. 27

29 In Steps 10a 10c, we will go through the steps to print the 1099 forms. Go to the Reports > Finance Reports > Vendor/Purchase Order Reports page and run the FIN2100 Printing 1099 MISC Form report with the following parameters: 1. Sort by Alpha (A) 2. Print 1099 Options: 1 Print only the 1099 form A (Red print Form for paper filers only) B Print copy B on Form LMBL. This is the Non Printed copy B (for recipient) Note: This is the recommended option and form to avoid printer alignment issues when printing the 1099 MISC Copy B form. C Choose C if you have Printed copy C 3. Tax Year: Click Run Preview. Click the 1099 Report to generate the 1099 report. 28

30 Once you click the 1099 Report it will toggle over to the 1099 Report. Click the PDF file icon to save and/or print the 1099 Report. This report is used to verify what will print on the 1099s. Review this report before printing the 1099 Misc forms. If no changes are needed, continue to print forms. 29

31 Click the PDF to begin printing 1099 MISC forms. Print the 1099 form Copy B and give to the vendor. These forms are due to vendors by January 31, NOTE: Adjustments may be made and new forms printed, as needed, until your district file is sent to the IRS. 30

32 Go to the Reports > Finance Reports > Vendor/Purchase Order Reports page and run the FIN2100 Printing 1099 MISC Form report, if your district is submitting electronically. This step should be completed once all adjustments have been made, but before January 31, Sort by Alpha (A) 2. Print 1099: 2 Print the 1099 form and the 1099 file 3. Tax Year: Control Name field, type the Payer Name Control Code from the mail label on the 1099 Packet that is mailed to you in December. If a 1099 Packet has not been received, use the first four significant characters of the district name. A dash ( ) and an ampersand (&) are the only acceptable special characters. Required for 1099 electronic file ONLY (2). 5. Contact Name field, type the name of the person who will send the electronic file to the IRS. Required for 1099 electronic file ONLY (2). 6. Control Code field, type the five character alpha/numeric Transmittal Control Code (TCC) assigned by the IRS/MCC. A Transmittal Control Code must be obtained to file data with this program. Required for 1099 electronic file ONLY (2). 7. Click Run Preview. 31

33 NOTES After clicking Run Preview, you will be prompted to save the file that will be sent electronically to IRS. If you choose not to send the electronic file, create and print Copy A. All Copy A s along with a 1096 Form (cover form with totals) must be post marked and mailed to the IRS by January 31,

34 The IRS has a few helpful resources to help you with 1099s under their Forms and Publications webpage. 32

35 33