Create 1099 Information
Use this screen to create the information that is used to print 1099s.
Before you can print 1099s, print the 1099 Edit Report, or use the Edit 1099 Information screen, you must create 1099 information on this screen.
You must print 1099s for all vendors who received $600.00 or more in rents or medical, other, or non-employee compensation (or $10.00 or more in royalties) for the year. Run the Create 1099 Information process to create 1099 information for all vendors designated as 1099 vendors. This gives you the opportunity to ensure that all 1099 vendors were charged the correct amount of 1099 income.
However, when you print 1099s, only vendors who received 1099 income are included on the 1099s.
Before you print 1099s, you must:
- Record checks against vouchers and post them.
To create 1099 information, Costpoint accesses check data for vouchers containing payments that are qualified for 1099 status. The process also accesses historical voucher data and automatically processes and calculates federal withholding tax, partial payments, voided or reissued checks, and voucher discounts to accurately compute the Total 1099 Amount and Total Taxable Amount for the Taxable Entity or Pay Vendor, and Calendar Year you entered.
- Map your organizations to specific companies on the Manage Organization Elements screen, and enter information for your company (or companies) on the Configure Company Information screen.
- To include state tax amounts in 1099 printed forms and magnetic media, you must set up state tax information for your taxable entities on the Manage State Tax Information screen, and set up default 1099 states for vendors on the Manage Vendors screen. If a state is a participant of the Combined Federal/State Filing program of the IRS, you can file your information returns directly to the IRS and the IRS will forward your returns to participating states.
Note: For Costpoint Cloud, you can choose to opt in to this feature for the Costpoint 8.2.15 release. The ability to opt in is temporary and will be removed when the feature becomes automatically enabled for all users as part of a future Costpoint release. See the Manage Opt-In Features topic for more information.
Although you will probably create 1099 information only once a year, you can run this process as often as you like.