Hi Friends,
Can anyone explain what is 1099 Tax reporting
1099 Reporting
-
zeenat khan
- Posts: 35
- Joined: Wed Apr 04, 2007 4:15 am
- Location: Pakistan
<b>1099 Reporting Overview</b>
In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers. In the supplier window, you can designate suppliers as federally reportable. When you enter invoices for the supplier, you classify invoice distributions by 1099 MISC type using the Income Tax Type field. At year end, you can then report, in standard formats, your accumulated 1099 payment information to the Internal Revenue Service, other tax agencies, and your suppliers. For each reporting entity, you assign one or more balancing segment values. When you submit 1099 reports for a tax entity, Payables sums up the paid invoice distributions that have these company balancing segment values in their accounts.
To create and report on 1099 supplier payments:
? If you want to use combined federal and state 1099 filing, and want to produce K?Records and B?Records, enable the
Combined Filing Program Payables option.
? If you use combined federal and state filing, define your tax regions.
? Define your tax reporting entities.
2. Enter 1099 details for suppliers:
3. Enter and pay 1099 invoices:
? When you enter invoices for 1099 suppliers, enter an Income Tax Type and Income Tax Region for appropriate invoice
distributions, or accept the default from the supplier
? Pay invoices.
4. Identify and resolve 1099 exceptions:
? Submit for each reporting entity the 1099 Invoice Exceptions Report to identify the following exceptions:
? 1099 invoice distributions with no Income Tax Type
? 1099 invoice distributions with invalid or missing income tax regions
? non?1099 invoice distributions with an Income Tax Type Resolve exceptions for each invoice distribution.
? Submit the 1099 Supplier Exceptions Report: to identify and resolve the following exceptions:
? suppliers with null or invalid state abbreviations
? suppliers that will be flagged as foreign in the 1099
Electronic Media report
? suppliers with missing or non?standard Tax Identification
Numbers
Resolve any exceptions in the Suppliers window.
? Print a Tax Information Verification Letter for each supplier who has not yet furnished or confirmed its tax identification number or tax reporting region. After a supplier provides this information, update the Supplier Verification Date in the Tax Region of the Suppliers window.
5. Optionally withhold tax from suppliers if they have a missing or
invalid Tax Identification Number (TIN) and if you have not met
the legal requirements of requesting a valid TIN from them.
6. Update 1099 Payment Information.
Adjust Invoice Distributions manually in the Invoice Workbench, or use the Update Income Tax Details Utility.
7. Generate 1099 Reports.
1099 Forms. Submit to the Internal Revenue Service for each 1099 supplier, and send a copy to the supplier.
1096 Form. Submit to the Internal Revenue Service for each 1099 MISC type paid during the calendar year.
1099 Electronic Media. If you submit 250 or more 1099 forms, the Internal Revenue Service requires you to file your 1099
payment information on magnetic media or electronically
Form 941. Send this form to the Internal Revenue Service to report total supplier withholding for a quarter. Your Accounts Payable department should create a manual payment for the total amount withheld, and you should remit this amount and the 1096 Form to the Internal Revenue Service.
1099 Payments Report. Run this report for your reference to review 1099 payments by supplier or MISC type.
In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers. In the supplier window, you can designate suppliers as federally reportable. When you enter invoices for the supplier, you classify invoice distributions by 1099 MISC type using the Income Tax Type field. At year end, you can then report, in standard formats, your accumulated 1099 payment information to the Internal Revenue Service, other tax agencies, and your suppliers. For each reporting entity, you assign one or more balancing segment values. When you submit 1099 reports for a tax entity, Payables sums up the paid invoice distributions that have these company balancing segment values in their accounts.
To create and report on 1099 supplier payments:
? If you want to use combined federal and state 1099 filing, and want to produce K?Records and B?Records, enable the
Combined Filing Program Payables option.
? If you use combined federal and state filing, define your tax regions.
? Define your tax reporting entities.
2. Enter 1099 details for suppliers:
3. Enter and pay 1099 invoices:
? When you enter invoices for 1099 suppliers, enter an Income Tax Type and Income Tax Region for appropriate invoice
distributions, or accept the default from the supplier
? Pay invoices.
4. Identify and resolve 1099 exceptions:
? Submit for each reporting entity the 1099 Invoice Exceptions Report to identify the following exceptions:
? 1099 invoice distributions with no Income Tax Type
? 1099 invoice distributions with invalid or missing income tax regions
? non?1099 invoice distributions with an Income Tax Type Resolve exceptions for each invoice distribution.
? Submit the 1099 Supplier Exceptions Report: to identify and resolve the following exceptions:
? suppliers with null or invalid state abbreviations
? suppliers that will be flagged as foreign in the 1099
Electronic Media report
? suppliers with missing or non?standard Tax Identification
Numbers
Resolve any exceptions in the Suppliers window.
? Print a Tax Information Verification Letter for each supplier who has not yet furnished or confirmed its tax identification number or tax reporting region. After a supplier provides this information, update the Supplier Verification Date in the Tax Region of the Suppliers window.
5. Optionally withhold tax from suppliers if they have a missing or
invalid Tax Identification Number (TIN) and if you have not met
the legal requirements of requesting a valid TIN from them.
6. Update 1099 Payment Information.
Adjust Invoice Distributions manually in the Invoice Workbench, or use the Update Income Tax Details Utility.
7. Generate 1099 Reports.
1099 Forms. Submit to the Internal Revenue Service for each 1099 supplier, and send a copy to the supplier.
1096 Form. Submit to the Internal Revenue Service for each 1099 MISC type paid during the calendar year.
1099 Electronic Media. If you submit 250 or more 1099 forms, the Internal Revenue Service requires you to file your 1099
payment information on magnetic media or electronically
Form 941. Send this form to the Internal Revenue Service to report total supplier withholding for a quarter. Your Accounts Payable department should create a manual payment for the total amount withheld, and you should remit this amount and the 1096 Form to the Internal Revenue Service.
1099 Payments Report. Run this report for your reference to review 1099 payments by supplier or MISC type.
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