Independent Contractor Reporting Info

There are two steps to setting up independent contractor reporting. You must first set some information in AP Company Parameters and then set up required reporting information for each applicable vendor in AP Vendors.

  1. In AP Company Parameters (Pay Types/Discounts/ICR tab), check the Independent Contractor Reporting box. When this box is checked, the system triggers a search function during payment processing to locate vendors meeting reporting requirements.
  2. Enter a threshold in the Threshold Payment Amount field. The system enables this field when you check the Independent Contractor Reporting box. The payment threshold may differ by state, ranging from $0 to $2,500; however, it will typically be $600. Contractors meeting or exceeding this amount (and meeting other reporting requirements) are included when printing the AP Independent Contractors Report.
  3. Enter a report title in the Report Title field. The system enables this field when you check the Independent Contractor Reporting box. This field indicates the report to use when the system generates an independent contractors report. Entry in this field is required only if you are using a custom report. Otherwise, leave the field blank to use the standard report (AP Independent Contractors Report).
    Note: The standard report follows California's reporting requirements. However, because reporting requirements may vary from state to state, you may choose to create your own report.
  4. In AP Vendors, enter the reporting information on the I.C. Report Info tab. The information on this tab is required for all states that require independent contractor reporting.
    Note: You must fill out this information for vendors who are independent contractors that you have hired and: you are required to file a 1099-MISC form for their services; to whom you pay $600 or more or enter into a contract for $600 or more; and who are individuals or sole proprietorships.
    Note: The Last Reported Activity display field shows the date on which the contractor was last reported. It is updated each time the Independent Contractors report is run for the vendor and is used to determine whether or not a contractor has been reported for the calendar year.