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Produce Vendor 1099s

Important Notes about 1099s

The following is a list of important information regarding 1099s:

  • Due to the format changes for 1099s, you can only produce 1099s beginning with the year 2001 and beyond.
  • It is not necessary to perform any "close" or other procedure to end the 1099 year for vendors. 1099 totals are associated with a tax year according to the effective date of the A/P Check or Disbursement Check issued to that vendor.
  • Only checks issued with 1099 box number in the document transaction lines will be used to compute the annual 1099 total.
  • If a vendor was not marked as a 1099 vendor at the time a check was issued and posted, that document will not be included in the 1099 total for that vendor. Changing the vendor's status will not retroactively adjust the annual 1099 total for documents issued before the change.
  • Manual vendor 1099 adjustments (added on the 1099 Information tab of the Maintain>Accounts Payable>Vendors form) will be combined with the calculated total. The adjustment will not replace the calculated value.
  • For instance, if a vendor's computed MISC 1099 total for box 15 is $1000 and it actually should be $1500, an adjustment of $500 should be entered.
  • Remember that only posted disbursements will be included in the 1099 totals. Invoices entered for a vendor that has not been paid will not be included in the calculated total (even though a 1099 box was indicated at the time the invoice was created).
  • If you intend to withhold state or local taxes on 1099 distributions:
    • For each vendor, select the "Issue 1099 for this Vendor" check box on the Maintain Vendors>1099 Information tab.
    • Only one State and State Tax ID is associated for all vendors within this organization. The default State and State Tax ID can be entered by the Administrator on the Organization>Organization Information>1099 State Withholding Information form or you can change it for every vendor by selecting the Override State Withholding check box, entering the State and State Tax ID on any Maintain>Accounts Payable>Vendors>1099 Information Tab.

Note: In the MIP 2020.3 release, any MISC-07 coded activities with an effective date of 1/1/2020 or later have been automatically updated to NEC-01.