The multi-year functionality in the Version 19.2 upgrade
will have a huge impact on the timing of the General Ledger fiscal year end
closing. However, it does not change the
need to file Forms 1099 during the month of January. With that in mind, it is not too early to start
looking at your vendor records to ensure a smooth calendar year end closing.
Review vendors to identify those that should receive a Form
1099. Payments that total $600 or more per
calendar year to individuals, partnerships, and limited liability companies
should typically be reported on a Form 1099.
Payers should seek and retain a completed and signed Form W-9 from each
vendor that may be subject to reporting on Form 1099. The Form W-9 clarifies the vendor’s status
and provides the payer with the vendor’s Federal Employer Identification
Number, correct legal name and address.
Review vendors’ records in menu 4-4 for company name,
owner’s name, address, 1099 Type, and Federal ID# (including formatting as
either XX-XXXXXXX for FEI# or XXX-XX-XXXX for SS#). Now is the time to get rid
of all 1099 Types 0-Undetermined. Based
on data from the vendor’s signed Form W-9, identify the proper 1099 Type –
1-Miscellaneous for vendors that are not individuals or sole proprietors that
may need to receive a Form 1099, 2-Rent for vendors that receive rent payments,
3-Interest for recipients of interest payments, 4-Sole Proprietor for
individuals and sole proprietors, or 5-No 1099 for corporations and other
recipients that payers are not required to report payments on Form 1099. Do not worry about whether a vendor will have
received $600 or more during a calendar year – the program will handle that for
you.
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