1099’s Overview & FAQ

How the Program Determines the 1099 Amount

When the program compiles the year to date purchases for each vendors, it will determine the amount to report on the 1099 in the following manner:

The General Ledger accounts used on each check issued to a vendor are checked to see if they are reportable on the 1099 (this is determined by the check box on the General Ledger Chart of Accounts setup window, “Report on 1099”).  Any amounts that are reportable are added up.  The program also adds up any amounts that were expensed to the Backup Withholding General Ledger account number (this account number is entered in the Federal Tax Rate Table option in Payroll).

In the case of Accounts Payable checks, if any invoices paid by the check are partially paid, then the program will take a percentage of the total 1099-reportable expense based on the amount paid and the total amount of the invoice.  For instance, if you paid $750 of a $1,000 invoice and the total amount of the invoice that can be reported on a 1099 is $800, the program will report $600 on the 1099 (75% of $800).

Issuing Two 1099’s to a Vendor

The vendor file is set up to handle one 1099 type per vendor.  If you need to issue two different types of 1099’s to a vendor (e.g. a miscellaneous 1099 and an interest 1099) and you want the program to track the amounts for each 1099, then you will need to set up two different accounts for that vendor. Be careful to use the right vendor account depending on what type of check you are writing.

You can also accumulate all amounts in one vendor account and then run a report at the end of the year to separate the 1099 amounts. You must use separate G/L accounts, one for each 1099 type. Then, you will need to create a second 1099. Edit the amount on the first 1099 the program created and enter the balance to report on the second 1099. See the information above on adding a 1099 record.

Problems Printing 1099's

Review this list of common problems when printing 1099's to find a solution for your problem.  If you do not see a solution, please contact Datatech customer support.

No 1099's printed out

Verify that you entered the correct year to print, and that you entered all four digits of the year.  If you entered the correct year, try printing the YTD Purchases Report to check the amounts for your vendors.  If you do not see any amounts in the 1099 Purchases, you probably need to use the Compile YTD Totals option first.  The other item to check on this report is the Type column.  Vendor accounts that you need to print a 1099 for should show the box number/type of payment in this column (for a misc. 1099) or a "Interest" or "Dividend".  If you see "None" in this column, you need to edit the Type of 1099 setting on the vendor account(s).

Also make sure that you have a vendor ID number entered for all vendors that require a 1099.

1099's are not lined up correctly with the form

Try changing the Top Margin setting on the 1099 printing window.  The default value is 0.50 (this measurement is in inches).  Decrease this amount to move the printing up, increase it to move it down.

The State ID # did not print on the 1099’s

The State ID # is entered in the State Tax Rate File.  Go to Payroll, Utilities, State Tax Rates.  Make sure that your state and the current year appear on this window, then enter the state ID # and save the entry.

FAQ's

If I need to issue a 1099 to a vendor, how do I set that up in Datatech Software

1099 settings are found under the 1099/EDD-542 tab in the vendor file. For instructions on using these settings to ensure a vendor receives a 1099, see the heading 1099's/EDD-543 in the Vendors topic.