Create 1099 Information

Use this screen to create the information that is used to print 1099s.

Original 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.

Although you will probably create 1099 information only once a year, you can run this process as often as you like.

Correcting 1099s

You can also create correcting 1099s for previously submitted 1099s that have errors. However, you can only create a correction for one taxable entity and pay vendor at a time.

Note: For Costpoint Cloud, you can choose to opt in to this feature for the Costpoint 2025.2 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.

Before you generate a correction record, you must:

• Confirm the existence of a previously submitted 1099.
• Correct vendor details first, then select them to generate 1099 corrections.

After you set parameters and initiate the creation process for correcting records, Costpoint compares the newly generated correcting 1099 with previously created 1099s. It matches the following details:

• Taxable Entity
• Calendar Year
• Pay Vendor
• Cash Organization
• Company ID

If a match is found, Costpoint inserts the correcting 1099 information into the VEND_1099C and VEND_1099C_STATE tables. This ensures that correction information is stored separately from the original 1099 data, maintaining the integrity and organization of your records.

After you create a correcting 1099, you can easily track or make changes to that record by accessing the Edit 1099 Correction Information screen.

Note: See 1099s Overview for background information about creating and printing 1099s. See 1099 Income Calculation Examples for illustrations of how Costpoint calculates 1099s. See 1099 FAQs for related information.