Review 1099 Information

AccuBuild generates the 1099 information for payees that meet ALL three of the following criteria:

•The payee is eligible for a 1099 if it is not flagged as a corporation.   (Refer to the Vendors > Acct Tab for this setting.)

•The payments to the payee must be charged to an expense account that is flagged as either NEC (non employee compensation) or Rents.  (Refer to the Ledger > Chart of Accounts for this setting.)

•The eligible payments to the payee must be $600 or more for the tax year.

Beginning with tax year 2020, AccuBuild prints to both the 1099 MISC  and 1099 NEC forms only.  Please refer to the IRS instructions on 1099s for further information.  

•1099 MISC - AccuBuild uses this form when reporting rent payments.  The rent amount will be printed in Box 1.

•1099 NEC - AccuBuild uses this form when reporting payments to independent contractors.  The non employee compensation amount will be printed in Box 1.

1.Finish All Accounts Payable Entries for the Tax Year.

Be sure that all checks have been entered for any vendor that is eligible for a 1099.  

The 1099 Information Report will list the payees that have been set up to receive 1099s and the amounts that will be reported.  

•Click Payables > Accounts Payable Reports > 1099s.

•Select the 1099 Cutoff Year.

•Click on the View 1099 Totals button.  

•On the next screen, click on the 1099 Info Report button to print the report.  

If you do not see a payee or if you do not see the correct dollar amount for a payee on the report, then print a detail report of checks to view the expense account(s) used on the transactions.  The 1099s will only include those amounts that have been charged to an account with a 1099 Code of Non Employee Compensation (NEC) or Rents as set up in the Chart of Accounts.  If you have coded a check to the wrong account, make your correction with a handwritten check for the specific payee in the proper tax year.  The net amount of the check will be zero but you will debit the account the payment should be applied to and credit the account the payment was originally posted.  

•        Click Reports > Vendor A/P Reports > Cash Disbursements Detail - By Vendor

•        You may select the partial run option to print the report for just one vendor.  

•        Enter the date range (Jan through Dec of the tax year).

If a payee is coded to the proper account but still does not appear on the report as expected, then check the 1099 Settings on the Payables > Vendors > Acct Tab.  If the payee has been marked as a corporation, then they will be excluded from the report.  If the payee was linked to another pay in error via the 1099 Client Number field, then their amount will be included with the other payee:  

•1099 Client Number - This field can be used to link one vendor to another vendor when processing the 1099s.  This option is useful if two separate vendor numbers have been set up for the same vendor and checks have been written in the current year using both vendor numbers.  Linking the vendors together will produce only one 1099 for that vendor.

If you are going to E-File your 1099s, and the payee has elected to receive an electronic 1099, then be sure to update the 1099 Settings on the   Payables > Vendors > Acct Tab.  

•1099 Electronic Consent - Check this box if the vendor / subcontractor has consented to an electronic 1099.  The 1099 Electronic Consent form can be found on the Payables > Tax Forms / E-File / 1099s menu.  The completed forms must be submitted to Aatrix prior to e-filing the 1099 forms.

•Email Address - Enter the payee's email address that will be used when sending the electronic 1099.

The 1099s DO NOT have to be printed before rolling the month of December or before entering data into the new year. The system will prompt you for the tax year and then sort through all the check detail in order to calculate the totals.