Managing Vendors with 1099s
The IRS requires that if you make payments in excess of $600 to certain groups, you must prepare 1099-MISC/NEC forms and send copies of the forms to the IRS and vendor(s). Complete the following steps to ensure that your vendor and 1099 information are set up properly within Spectrum.
PART A – Set up the vendor
On the Site Map, click to set up the vendor.
Click the Properties button and complete the Payment due, Discount due, Insurance, Status, and Invoice defaults sections.
In the 1099-MISC/NEC section of the Properties window, select the 1099-Applicable checkbox and then complete the Alternative name field.Note: It is suggested that you complete the Alternative name field in case the vendor uses multiple names when submitting his/her 1099 information to the government.
In the Amount indicator field, use the drop-down menu to select the 1099 form's payment indicator.
Complete the Social sec # field or the Payer tax ID number field.Important: Do not wait to until a later time or date to complete this step.
Complete the remaining fields and then click OK until you return to the Site Map.
PART B – Year End processing
During year-end processing, on the Site Map, click .
Click the Build button to open the Build 1099-Mics Forms screen.
In the Vendor field, enter the vendor code, press F4 to select a valid vendor code, or press Enter to accept the software default of ALL.
- In the From date field, enter the first payment date to be processed.Note: Normally, this is 01/01/YY.
- In the Through date field, enter the final payment date to be processed.Note: Normally, this is 12/31/YY.
In the Minimum amount field, enter the minimum year-to-date payment amount for the vendor 1099s. Vendors with total payment amounts less than the amount entered in this field will not be updated to 1099 processing.
Select Continue and then click Save until you return to the Site Map.