The Form 1099 is used to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). Examples of reportable transactions are amounts paid to a non-corporate independent contractor for services (in IRS terminology, such payments are non-employee compensation). The ubiquity of the form has also led to use of the phrase "1099 workers" or "the 1099 economy" to refer to the independent contractors themselves.
Contact an accountant to determine the following information before attempting to print the 1099 forms. More information can be found from an IRS tax form instruction document or on Wikipedia.
The following information and settings must be verified before printing 1099 forms:
Specific types of expenses must be identified by associating general ledger accounts to specific types of expenses listed within the 1099 form. Note that threshold amounts may change. Review the Viewing 1099 Controls and Changing Threshold Amounts section to verify settings.
Review the instructions within the Verifying Company information section to setup company tax information
Vendors that require 1099 forms must be identified. Review the Setting Vendor Information section for instructions.
Per 1099-K regulations 1099 forms should only include those transactions that have been paid via check or cash. If an expense invoice has been paid via a “Bank Account” with a Bank Account Type of “Credit Card” or “Electronic Funds” the payment will not be included on the 1099 forms.
Review the Printing 1099 Forms section for printing instructions.
The following information and settings should be verified before printing 1099 forms.
Review Verifying Company information for instructions to verify the company tax ID and account settings
Review Setting Vendor information for instructions to identify the non-corporate and employee vendors that require a 1099 form.
Review Viewing 1099 Controls and Changing Threshold amounts to verify that all general ledger accounts identify the correct 1099 form.
review the same section to verify 1099 threshold values.
Print the 1099 Payments from the File > Reports > Financials > 1099 Reports > 1099 Payments to list all 1099 vendor payments. It is important that all settings are accurate before your generate the actual 1099 forms. Note that 1099s must be mailed by January 31st.
Contact an accountant or EBMS consultant for the most recent tax details that affect these settings.