Preparing for Filing 1099’s with Intacct
Are you ready to file 1099’s this year? Here’s a quick way to find out:
Navigate to: Accounts Payable > 1099/1096 > 1099 Reports
What does the report display? No data? Incorrect amounts? Don’t panic, today’s post will guide you through the steps necessary to make sure your company is 1099 ready!
We’ll break down approaching 1099’s in Intacct into three main sections:
- Vendor and Employee Records – If Vendors or Employees are missing from the above report, they may not be tagged with a 1099 type and box. We’ll take you through how to make sure your Vendors and Employees are tagged correctly.
- 1099 Beginning Balances – What if you know your Vendors and Employees are tagged correctly, but the amounts are not showing or are incorrect? How do you get the beginning balances coming from your historic system entered into Intacct? It’s okay if you skipped it during implementation, it’s not too late, we’ll show you how!
- Updating Transactions – What about transactions entered directly in Intacct or imported? Are those tagged with the 1099 checkbox? We’ll show you how to update transactions through an import
Step 1: Making sure your Vendors and Employees are tagged as 1099
There are three ways you can tag your vendors and employees with the correct 1099 Type and Box: Manually, Importing, or Vendor Types. Let’s go through each method so that you can choose the best approach.
Method 1: Manual – Editing the Vendor/Employee record
This method is best used when only updating a few Vendors or Employees. (Refer to method two if you have many updates).
Where do you find the 1099 type and box on Vendors:
Accounts Payable > Vendors > *Choose a Vendor* > Edit > Additional Information > Form 1099
(Helpful Tip: You will only see the Form 1099 link in Edit mode (not View or Create New). If creating a new Vendor, there will be a check box which you’ll need to select, then Save and come back in and Edit the Vendor to find the Form 1099 link).
Clicking the Form 1099 link takes you to the below screen:
(Note: If you don’t have print separate 1099’s per entity enabled, you won’t have the entity option above).
Similarly on Employees, you find the 1099 type and box by navigating to:
Time & Expenses > Employees > *Choose an Employee* > Edit > Form 1099
Clicking the Form 1099 link takes you to a familiar screen (it’s the same as on Vendors):
Method 2: Import – Importing Vendors/Employees with 1099 type and box using a template.
This method is best used when creating/updating a large amount of Vendors or Employees.
If you are newly creating Vendors or Employees you can use the original Vendor/Employee template found in the Company Setup Checklist:
If you’re updating Vendors/Employees, I would recommend using the Transaction Update template. We’ll go through this template in step 3 below, so keep reading!
Method 3: Vendor types – Creating and assigning vendor types
a) Create a new Vendor Type: Accounts Payable > Open Setup > + Vendor Types
Save the Vendor Type. Just like Vendors and Employees, the Form 1099 link will appear when we go back to edit.
b) Edit the Vendor Type and Assign a Type and Box: Edit > Form 1099
c) Assign Vendors with the Vendor Type: This can either be done manually or by import.
Step 2: Making sure your 1099 Beginning Balances are entered
There are two ways to accomplish this:
Method 1: Manual – We can update each Vendor/Employee’s beginning balance manually
Vendors: Accounts Payable > Vendors > Edit > Additional Information > Form 1099
Method 2: Import – We can also import each Vendor/Employee’s beginning balance using the 1099 Beginning Balance template
a) Find the Template: Company > Open Setup > Company Setup Checklist > Vendor 1099 Opening Balances OR Employee 1099 Opening Balances
b) Fill out the Template: Below is a sample of how to fill out the template. The template is useful if you have quite a few opening balances to update. (Rather than going through the multiple screens on each Vendor this allows you to update all those fields pretty quickly).
c) Import!
Step 3: Updating Intacct transactions
Intacct has two handy templates called:
- Vendor 1099 Transaction Update
- Employee 1099 Transaction Update
What do they do?
- Update historic transactions within Intacct that may have not been tagged as 1099 but should have been. (The 1099 checkbox on a transaction).
- It can also be used to update Vendors or Employees with their 1099 type, box, and name.
In other words, it’s a magical template. So how exactly does it work? Below is an incredibly helpful photo provided by Diane Taylor at Intacct which explain how to fill out the template and what each field does.
Let’s go through an example. Let’s assume I have the following Vendor in Intacct that is not currently tagged as 1099, nor are any of the associated transactions. Basically it is your worst case scenario: the Vendor isn’t tagged and neither are any of the transactions. It’s not even showing up on your 1099 Report. So what do you do? Use the Vendor 1099 Transaction Update Template! Let’s see how it works:
The Vendor (Before):
The associated bills already created:
A sample bill not marked as 1099:
The Vendor 1099 Transaction Update File:
The Vendor (After):
The sample bill marked as 1099:
The 1099 Report:
Hopefully this post has made you feel more comfortable and prepared for filing 1099’s. If you have any questions the CLA Intacct team is here to help! Email us at intacct@claconnect.com
Kathy Jastrzebski is a manager with CLA’s Intacct team. CLA is an Intacct Premier Partner with a partnership that spans over 20 years and more than 1,000 successful implementations. Kathy brings five years of accounting experience along with seven years of Sage Intacct implementation experience. Along with her accounting experience, she has a passion for leveraging technology to lead finance teams worldwide through system implementations with a mission of increasing department efficiency through business process improvements.