BPM Country Reports

1099 Nec

This section describes the fields and actions on the 1099 Nec workspace, as well as instructions on how to generate the report.

Quick Links: Selection Criteria | Generate Report | Report Fields | Limitations | Admin Setup

Overview

The IRS has created a form, 1099 Nec (Non-Employee Compensation) report, which includes only the Nec details (previously found in the 1099 Misc report) in order to have better audit trail and visibility for Nec transactions. The 1099 Nec report is essentially a copy of the 1099 Misc report; except that it only contains 7 amount boxes. It is still similar to the 1099 Misc in that it consists of the following:
  • A first report tab that provides a summary of figures
  • A second report tab that provides the box values; just for fewer boxes.

The following are other considerations to note:

  • Box 1 corresponds to Box 7 in the previous version of the 1099 Misc report.
  • Box 4 corresponds to Box 4 in 1099 Misc, Box 5 to 15 in the 1099 Misc, along with Box 6 to 16 and Box 7 to 17.
Note: Only Box 1 is commonly used. Box 6 must manually entered as there is currently no place to store a state TIN. This update is scheduled for a future release.

Report Workspace

Navigation

To open the report workspace, select Reporting » Country Reports » USA » 1099 Nec.

Or, go to Reporting » BI Launch Pad and click Open BI Launch Pad. The report is located on the Business Performance Management » Reporting » USA folder.

Selection Criteria

Prompt Title Behavior Mandatory
Reporting Year Only entries for which the year of the payment's (reconciliation's) entry date is equal to the Reporting Year provided by the user, are included. Yes
Vendor No Only vendor invoices (disclosable vendor entries) and payments (reconciliations against these) registered for vendors in the selected list, are included. No.
Chart of Accounts Type Selects whether to apply the company's local chart of accounts or the global chart of accounts.

Values: Global or Local

No
Company No Only vendor invoices (disclosable vendor entries) and payments (reconciliations against these) registered for companies in the selected list, are included. No

Generate the Report

Export the Report

To generate the report:

  1. Go to Reporting » Country Reports » USA » 1099 Nec.
  2. Enter the selection criteria for running the report.
  3. Click Run. The screen refreshes and displays the generated report.

    To keep a copy, click the Download icon. In the dialog box, specify the parameters for the export file (file type, reports and options), then click Export.

Note: You can manually enter or use a third-party application to import the data into your form.
Submit the Report

Use a compatible third-party application to extract the data from Maconomy (for example, via the Excel file downloaded from the WebI report). The application can automatically fill out the form and submit it to the US Tax Authorities.

Report Description

Export Fields and Descriptions

The report consists of two tabs: Details and Data.

The Details tab displays a table for each vendor. The table shows central data from each vendor invoice registered, the present year and corresponding amounts paid and reconciled within the given year. Other kinds of entries could be displayed as well like exchange rate differences or discounts as long as they are disclosable.

In addition to displaying the same data as the Details tab, the Data tab also displays all necessary contact information of the vendor. Amounts are categorized into boxes, providing the foundation for completing the form.

Details Tab

Top-Level Header Column Description
Transaction Entry Date This column displays the entry dates of the disclosable vendor entries against which payments (reconciliations) have been registered.
No. This column displays the transaction numbers of the disclosable vendor entries against which payments (reconciliations) have been registered.
Descr. This column displays the descriptions of the disclosable vendor entries against which payments (reconciliations) have been registered.
Invoice No. This column displays the invoice numbers of the disclosable vendor entry against which payments (reconciliations) have been registered.

If an entry does not represent a vendor invoice, the cell is blank.

Date This column displays the invoice dates of the disclosable vendor entries against which payments (reconciliations) have been registered.

If an entry does not represent a vendor invoice, the cell is blank.

Invoiced This column displays the invoiced amount of the disclosable vendor entries against which payments (reconciliations) have been registered.

The amount is actually the Credit minus Debit of the entry being reconciled. Therefore, it displays an amount regardless of whether the entry represents a vendor invoice or not.

Payment Paid This column displays the amount reconciled against the disclosable vendor entries.

The amount displayed is the Debit minus Credit of the reconciliation. That is, it is not the paid amount, as it is not taken from the vendor entry. It is the amount reconciled, taken from the vendor reconciliation.

Total This column displays the total reconciled amount against disclosable vendor entries.
Limit This column displays the non-employment compensation threshold.

Payments exceeding this amount must be reported in the form.

Report Amount This column displays the total amount of payments that must be reported in the form for the tax year.

Data Tab

Column Description
Rcp TIN This column shows the CNR number of the company vendor.
First Name This column is blank.
Last Name/Company This column shows the name of the vendor.
Name Line 2 This column is blank.
Address Type States the country letter:

C - if the country or state is Canada

O - if the state is '.' Blank otherwise.

Address Deliv/Street This column shows the street of the address of the company vendor (Name 2).
Address Apt/Suite This column shows the number, apartment or suite number of the company vendor's address (Name 3)
City This column shows the city of the company vendor's address (Postal District).
State This column shows the state of the company vendor's address.
ZIP Code This column shows the ZIP code of the company vendor's address.
Country This column shows the country of the company vendor.
Rcp Email This column shows the e-mail of the company vendor.
Tax State This column shows the tax state the company vendor belongs to (Country).
Rcp Account No. This column shows the number of the company vendor.
2nd TIN Notice This column shows Yes if IRS has notified twice within three calendar years that an incorrect TIN was provided.

Otherwise, this is No.

Box 1 Amount This column shows the Report Amount if the company vendor option Remark 1 has the value "1".
Box 2 Amount This column shows the Report Amount if the company vendor option Remark 1 has the value "2".
Box 3 Amount This column shows the Report Amount if the company vendor option Remark 1 has the value "3".
Box 4 Amount This column shows the Withholding Tax as posted to GL.
Withholding tax is fetched from the finance entries posted to the account stated by the Remark 3 field of the vendor's option.
Note: Box 4 will not show values for Statistics1 if used with Federal Income Tax Withheld. Do not use Statistics1 with Federal Income Tax Withheld (Box 4).
Box 5 Amount This column shows the Report Amount if the company vendor option Remark 1 has the value "5".
Box 6 Amount This column shows the Report Amount if the company vendor option Remark 1 has the value "6".
Box 7 Amount This column shows the Report Amount if the company vendor option Remark 1 has the value "7".
Direct Sales of $5000 or More Displays Y (Yes) or N (No) to indicate the presence of sales equal to or exceeding USD 5000.

Limitations

None reported.

Admin Setup

Maconomy Setup

Note: You must have System Administrator rights to configure some of these settings, such as the Reference Workspaces.

Option List Setup

  1. Go to Setup » System Setup » Opti Lists.
  2. Click + New Option List to open the Create Option List dialog box.
  3. In the Option List No. field, enter 1099 Nec.

    (Optional) Provide a description for the option list.

  4. Click Create Option List.
  5. On the Options table, click the Add icon and enter options. Each option represents a specific box number of the form. Complete the following fields for each box:
    • In the Name field, enter the name of the box.
    • In the Remarks 1 field, enter the number of the box.
    • In the Remarks 2 field, enter an integer representing the amount limit.
    • In the Remarks 3 field, enter General Ledger Account (G/L account) for Withholding Tax. .

      Note: The G/L account should have Transfer: Vendor No. enabled.

      If employees are used as vendors, the activities they post on must have Settle via Vendor enabled.

      For example:

      • Name: Nonemployee Compensation
      • Remark 1: 1
      • Remark 2: 750
      • Remark 3: 6340
  6. Click Save.

Vendors Setup

Note: Vendor invoices should have been created before proceeding.

To set up vendors to include on the report:

  1. Go to Reference Workspaces » Accounts Payable » Set-Up »Vendor Information Card.
  2. Enter or select the vendor to configure.
  3. In the General Information card, select the Disclosable check box.
  4. In the Print Control card, configure the Statistics 1 field, as follows:
    • List: Select the option list defined in the previous section.
    • Value: Select an option list value.
    Note: A vendor can only be assigned to one option in the Statistics 1 field.

    Each vendor can only be defined for trades that goes into one box on the form. If this is not sufficient (for example, if a vendor sends invoices related to Rent, and invoices related to Healthcare), it must be handled by defining two different vendors assigned to each of these categories.

  5. Click Save.

External Setup

Not applicable for this report.