1099’s are on the Horizon!
Before you resort to those 1099 import templates from last year, find out how you can eliminate them by learning these 3 new features issued with Intacct’s fourth quarter release that help facilitate a more efficient 1099 process!
You may have read that one of the provisions in the Protecting Americans From Tax Hikes Act of 2015 (PATH Act) was to accelerate the filing deadline for Form W-2 and Form 1099-MISC. The new due dates take effect for the 2016 forms, which are due in 2017. The new accelerated timeline will help get employer information to the IRS sooner, thereby helping to limit the opportunity thieves have to file fraudulent returns. (Click here for more information).
With this, Intacct has also issued a few updates in their latest release to help facilitate 1099 processing within Intacct. So, without further ado, let’s get to them!
This post will review these three new 1099 features:
- 1099 Vendor Addresses – Are your Vendor’s 1099’s printing with the correct address? Do you need to update their address each year before you print 1099’s? Not to worry, this release adds a new field on the Contact tab of the Vendor record specifically for a Vendor’s 1099 address.
- Enabling form and box override in AP – Do you have Vendors that you use multiple 1099 forms or boxes for? The newest release has moved this override to the bill entry screen.
- Automatically update form and box for existing transactions from the Vendor Record – Saving the best for last! Did you forget to tag a vendor as 1099able? Now you have multiple bills added and none are tagged as 1099? Say goodbye to having to update the amount on the vendor’s 1099 information or using an import template and say hello to easily being able to update all previous transactions for a vendor as 1099 transactions with just a few clicks!
Before we get started, for more helpful tips on 1099 preparation in Intacct, check out our blog post from December 2015.
1099 Vendor Addresses
Do you have any vendors who’s 1099 address does not match their main address? Previously in Intacct, you would need to update the Vendor’s address, print their 1099 form, then revert the address back. The newest release has added a new separate field to hold a Vendor’s 1099 address that can be updated if any of your vendors fall into this category. Update just once and never worry about it again. Let’s see how it’s done!
1.Navigation: Accounts Payable > Vendors > Click to *Edit* the vendor > Contact List tab
2. Add a New Contact Under Contact List
- Enter the Category: “1099 Address”
- Click the drop down below Contact
- Click +Add
- Enter a Suggested Contact Name: “XYZ Vendor 1099”
- Enter a Print As for the 1099 form: “XYZ Vendor”
- Click the Mailing Information tab
- Fill out the Vendor’s 1099 address
- Click Save!
3. Assign 1099 Contact Under 1099 Drop Down
- Under the Payto/Returnto Section in the 1099 Contact drop down select the Contact name you just created.
- Click Save!
- Go To: Accounts Payable > 1099/1096 (under Reports section) > Form 1099
- Filter for the Vendor you just edited the address for. Select the form type.
- Notice the newly added 1099 address.
Enabling Form and Box Override in AP
Have you ever had a Vendor which most of the time their bills are classified to a single form and box type but just a single bill should be a different box or different form type? Well, now you can override the default form type and box right in AP Bill enry. You can also reclassify already paid bills if just a single bill needs to be reclassified.
1.Navigation: Accounts Payable > Open Setup > Configure AP > Enable the checkbox to “Enable 1099 box and form override” > Save
2. Create a New Bill and Verify
3. Reclassify an Individual Bill: Find your bill > Edit > Reclassify > Change the form or box > Post
Automatically update form and box for existing transactions from the Vendor Record
1. Run 1099 Report for All Transactions: Accounts Payable > 1099/1096 > 1099 Reports
After running the report, we notice only Barnes and Noble is on the report and we are missing Vendor ABC Vendor 1.
2. Update a Vendor’s Prior Transactions as 1099 Automatically by Navigating to: Accounts Payable > Vendors > Edit > Form 1099 > Select Form type and Box > Save! > Click to Save again on the Vendor in order to update!
3. Dialogue Box to Update Transactions Will Appear: Click OK to update all prior transactions for this Vendor as 1099, or Cancel to manually update them.
4. Rerun your 1099 Report!
Helpful Tip: Remove Vendor’s 1099 Information too! The same procedure works in reverse. If a Vendor was accidentally tagged as 1099 and all transactions need 1099 information removed, you can do so by just removing the 1099 information from the Vendor.
Have any Intacct questions? Need assistance with preparing for printing 1099’s out of Intacct? Feel free to reach out to your CLA Intacct team!