Accounts Payable > 1099 Payment > Set Up 1099 Payments

Note: This function is not accessible if the company's country tax is Canada.

To set up the default values for your 1099 payment types, perform the following steps:

1.Access the 1099 Setup function from the Maintenance main menu in Accounts Payable module.

2.Click the List box button beside the Current 1099 Year field; then, select the appropriate current 1099 year.

3.Enter in the Fed Tax ID field the company's federal identification number. This information is printed on the 1099 Form.

4.Enter in the Minimum Requirement column the minimum value for each 1099 payment type. Before you generate 1099’s, you need to review the federal tax guidelines and update these values as necessary.

For example, if current regulations indicate that non-employee Compensation payments of $600 or greater require a 1099, you must enter 600 in the Minimum Requirement field for the Non-employee Compensation 1099 payment type.

AccountMate will verify vendor 1099 payments coded as non-employee compensation against the values in that field when you print 1099 forms and will only print forms for vendors to whom you have paid at least that much in non-employee compensation during the year.

Note: The 1099 type for a 1099 vendor is set up in the vendor's maintenance record.

5.When you are ready, click the Save button to save your entries; otherwise, click Cancel.

Q: I want to record an AP invoice relating to rent but I cannot change the type in the 1099 Type field of the AP Invoice Transactions function. What did I miss?

A: To activate the 1099 Type field, make sure that you have set your vendor to qualify for 1099-Misc reporting in the vendor record. In the Vendor Maintenance -> Information Page, be sure to mark the 1099 Eligible checkbox and set the appropriate 1099 Type in the 1099 Type field.

Set Up 1099 Payments

Set Up 1099 Payments

See Also