Set Vendors Subject to 1099 Reporting (United States)

You can set a vendor to be subject to 1099 Reporting in the AP Vendors form, even if you are not completely certain whether the vendor is subject to reporting.

If you are unsure of whether a vendor is subject to 1099 reporting, you should set them as subject. This ensures that all transactions posted to this vendor are automatically flagged to be included in the vendor's 1099 totals. If you later learn that this vendor is not subject to 1099 reporting, you can reverse the action and 1099's will not print - you will not need to change any transactions. They will show on the AP 1099 Report, but will include a message stating that 'transactions subject to 1099 report exist, but no 1099 forms will print'.

To set a vendor subject to 1099 reporting in AP Vendors:

  1. If this vendor is subject to 1099 reporting, select the Subject to 1099 reporting check box.
    The system enables the 1099 Type, Box#, Proprietor, Include in 1099 Processing, and Mailing Address Seq fields.
  2. If the vendor will receive a printed copy of 1099s and you need to use an address other than the payment address specified for the vendor (Info tab), use the Mailing Address Seq field to specify the address sequence or press F4 to see a list of sequences.
    Note: Address sequences are maintained on the Add'l Addresses tab of the AP Vendors form. If you enter a sequence in this field, the system uses the associated address when printing 1099s or when electronically filing Federal 1099s via Aatrix (initiated via AP 1099 Download).
  3. In the 1099 Type field, enter the 1099 type that the system will use to track payable amounts subject to 1099 reporting for this vendor. Press F4 for a list of 1099 types.
  4. In the Box# field, press F4 to select from a list of valid boxes on the 1099 form where 1099 amounts will accumulate and print for this vendor.
  5. In the Tax ID# field, enter the vendor’s federal tax identification number. This number prints on the 1099 form.
  6. In the Proprietor field, enter the proprietor (owner) name, if any. You must enter the name as "Last Name, First Name" to enable proper 1099 electronic filing.
  7. Select the Include in 1099 Processing (ignore minimum) check box if the system should include a vendor's totals when processing (downloading or printing) 1099s, regardless of whether the vendor's payment is less than the specified minimum payment amount.
    Note: If you do not select this check box, the system only prints a 1099 for the vendor if the vendor's payment is equal to or greater than the value in the Minimum Payment Amount field in the AP 1099 Download form.
  8. If the vendor has consented to receive 1099s electronically (via email), select the 1099 Email Consent check box. If this check box is not selected, the vendor will receive printed 1099s.
  9. Save the record.