QuickGuide: Process 1099-MISC Forms
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QuickGuide: Process 1099-MISC Forms
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Table of Contents
QuickGuide: Process 1099-MISC Forms 1
Before You Begin 1
1099-MISC Terms and Helpful Links 1
Process 1099-MISC Forms 2
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QuickGuide: Process 1099-MISC Forms
Before You Begin
Review the following information prior to processing 1099-MISC forms:
❏ If your LEA has more than 250 1099-MISC forms, you must file electronically. If not, LEA's can still opt to file electronically. Refer to the IRS Filing Information Returns Electronically (FIRE) homepage for additional information.
❏ LEAs who plan to file by paper must submit Copy A for each recipient along with Form 1096.
1099-MISC reporting deadlines:
Fire Production System Availability – Available January 10, 2020
FIRE
• Provide 1099-MISC forms (Copy B) to each vendor by January 31,2020.
1099-MISC Terms and Helpful Links
Terms
|Term |Description |
|IRS |Internal Revenue Service |
|SSA |Social Security Administration |
|SSN |Social Security Number |
|Form 1099-MISC |File Form 1099-MISC for each person to whom you have paid during the year. |
| | |
| |❏ at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest; |
| |❏ at least $600 in: |
| | |
| |rents; |
| |services performed by someone who is not your employee; |
| |prizes and awards; |
| |other income payments; |
| |medical and health care payments; |
| |generally, the cash paid from a notional principal contract to an individual, partnership, or estate; |
| |payments to an attorney; |
1099-MISC Helpful Links
|IRS Homepage | |
|Form 1099-MISC | |
|Form 1099-MISC | |
|Instructions | |
|Filing Information Returns Electronically| |
|(FIRE) | |
|Publication 1220, Specifications for | |
|Electronic Filing of Forms 1097, 1098, | |
|1099, 3921, 3922, | |
|5498, and W-2G | |
|Publication 15 | |
|(2019), (Circular E), Employer's Tax | |
|Guide | |
Note: The most efficient way to apply to file information returns electronically is to submit the Fill-in Form 4419, Application for Filing Information Returns Electronically (FIRE), from the FIRE home page. You may also go to Forms and Pubs: at ,
and select the paper version of Form 4419. Be sure to submit your application at least 45 days prior to the due date of your information returns.
Process 1099-MISC Forms
1. Verify District Finance Options.
Finance > Tables > District Finance Options > Finance Options
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Verify that the following fields contain accurate information:
Current Finance Fiscal Year School Year
Previous Year File ID - Verify that the Previous Year File ID field.
Starting Accounting Period
2. Delete the 1099 work table.
Log on to file ID C.
Finance > Utilities > Create 1099 Work Table
Use this utility to delete 1099 historical data from the tables before creating the new year 1099 work table.
Leave the Beginning Date and Ending Date fields blank to delete all existing 1099 table data.
Click Delete. A message is displayed with the number of rows being deleted from the 1099 work table.
Click OK to close the message box.
3. Create the 1099 object codes table. (Compare File ID C with File ID 9)
Finance > Tables > 1099 Object Codes
In file ID C, review all of the object codes that were used when paying 1099-eligible vendors. You can add and/or delete object codes as needed. Generally, 62XX accounts are included.
Log on to the prior year file ID (9).
Ensure that the prior and current year file ID object code tables have the same object codes since the amounts spent from January 1, 2019 - August 31, 2019 exist in the prior year file ID (9).
4. Create the 1099 work table.
Finance > Utilities > Create 1099 Work Tables
Process this utility to populate the work table from the check transactions. The table populate the Finance > Maintenance > 1099 Record Maintenance page and allows you to modify entries.
The create 1099 work table process uses file ID C and the file ID in the Previous Year File ID field on the Finance > Tables > District Finance Options > Finance Options tab for file ID C to determine which file IDs to use. After this utility is processed, if check transactions are identified for a file ID other than C and the Previous Year File ID field is blank on the Finance Options tab in file ID C, a warning message asking for confirmation to continue is displayed. Click Yes to continue.
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Type a Beginning and Ending Date range.
Click Add to create a 1099 work table. A message is displayed with the number of rows being added to the 1099 work table.
Click OK to close the message box.
5. Generate the 1099 report.
Finance > Finance Reports > Vendor/Purchase Order Reports > FIN2050 - 1099 Report
Generate this report to review the vendors and transactions for accuracy. It is recommended
to sort the report by the Employer Identification Number (EIN)/Social Security Number (SSN). This sorting option allows those vendors without an EIN/SSN to be displayed at the beginning of the report. A 1099-MISC form is not generated for vendors without an EIN/SSN.
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If a vendor is not displayed on the report and should be, verify the following:
The EIN or SSN is populated and the 1099 Eligible field is selected on the Finance > Maintenance > Vendor Information > Vendor Name/Address tab.
The object code used to pay the vendor exists in the 1099 object codes table in both the current and prior year file IDs.
If 1099 transactions exist for objects that you do not want to be included in the 1099s, update the 1099 object code table. If you remove a code from the Finance > Tables > 1099 Object Codes page, it is not included on the 1099-MISC form or the 1099 file, but it is displayed on the 1099 Report without a payment type description.
Transactions can be deleted and added by running the Create 1099 Work Table utility again or manually deleting and adding transactions on the Finance > Maintenance > 1099 Record Maintenance page. If you delete a transaction from a vendor and the Create 1099 Work Table utility is processed again, delete the transaction on the Finance > Maintenance > 1099 Record Maintenance tab.
If the student activity check transactions (fund 865) are not maintained in TxEIS, you must manually enter the information on the Finance > Maintenance > 1099 Record Maintenance page.
6. Perform 1099 record maintenance.
Finance > Maintenance > 1099 Record Maintenance
Perform any necessary updates to the payment information in the 1099 work file. You can verify, add, delete, or update check transactions for each vendor to ensure the accuracy of the vendor 1099 records.
Only transactions that occurred in 2019 with object codes from the 1099 object codes table are displayed.
Be sure to delete any transactions that should not be reported (e.g., reimbursements).
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7. Verify the following Reports:
A. The report (FIN 2400) displays a list of vendors who have been sent W-9 Forms.
Or you can use a User Created Report to view the list for Vendors who should receive a W-9.
(FIN 2400) Finance > Reports > Finance Reports > Vendor Purchase Order Reports > Vendor W9 Reference Listing
.
B. Compare report (FIN2050) 1099 Report with the (FIN2100) Printing 1099-MISC Form. (You are not printing yet just verifying information from this report). Click on the 1099 Report button.
Finance > Finance Reports > Vendor/Purchase Order Reports > FIN2050 - 1099 Report Generate this report again and continue comparing the vendors and transactions for accuracy.
If any vendors and/or transactions are missing, you can manually enter any exceptions on the Finance > Maintenance > 1099 Record Maintenance page, or make the corrections on the Finance > Maintenance > Vendor Name/Address tab and the Finance > Tables > 1099 Object Codes page (if extracting transactions again).
The total of all 1099 work table transactions for that vendor is greater than or equal to $600.00. (or Royalties $10.00)
Compare each Vendors Name and Total Amount.
(FIN2050) (1099 Report)
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(FIN 2100) – ‘Printing 1099-MISC Form’
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C. Another good comparison is to pull the General Ledger and enter the account Code:
199-3X-6219 in file ID C and file ID 9. Verify that all the Game Officials, that made over $600, are listed on the 1099 Report.
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8. Print the 1099-MISC forms.
Once all information has been verified, the actual 1099 MISC Form can be printed from Reports > Finance Reports > Vendor/Purchase Order Reports > Printing 1099-MISC Form (FIN2100).
• Sort by Alpha (A)
• Non-preprinted Copy B (Recipient) and C (Payer) (3)
• Tax Year will be 2019
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9. File 1099-MISC forms.
Use the IRS Filing Information Returns Electronically (FIRE) system to electronically file 1099- MISC forms.
Create electronic file. If submitting your district file electronically, this step should be completed once all adjustments have been made, but before January 31, 2020. From Reports > Finance Reports > Vendor/Purchase Order Reports > Printing 1099-MISC Form (FIN2100), change the second option from 3 to 2.
• In the Control Name field, type the Payer Name Control Code from the mail label on the 1099 Packet that is mailed to you in December. If a 1099 Packet has not been received, use the first four significant characters of the district name. A dash (-) and an ampersand (&) are the only acceptable special characters.
• In the Contact Name field, type the name of the person who will send the electronic file to the IRS.
• In the Control Code field, type the five-character alpha/numeric Transmittal Control Code (TCC) assigned by the IRS/MCC. A Transmittal Control Code must be obtained to file data with this program.
These forms are due to vendors by January 31, 2020. Adjustments may be made and new forms printed as needed until your district file is sent to the IRS.
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Control Name (4 char, only required for 1099 file) Contact Name (40 char, only required for 1099 file) Control Code (5 char for 1099 file)
After clicking Run Preview,
• The file must be renamed from IRSTAX_MMDDYYYY.txt to IRSTAX before transmitting electronically to the IRS.
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If filing by paper, mail all Copy A forms along with a 1096 Form. The submission must be postmarked and mailed to the IRS by January 31, 2020.
Due to Recipients:
January 31, 2020- Copy B
Due to IRS:
January 31, 2020 – paper submission (Copy A along with the 1096 Form)
Department of the Treasury
Internal Revenue Service Center
Austin, Texas 73301
-OR-
Note: We recommend that you send the file electronically at
January 31, 2020 – electronic submission required if filing 250 or more 1099 forms and is recommended for all. Any filer of Information Returns may file their returns electronically. IRS instructions for filing electronically can be found at the following link:
(FIRE)
Which vendors should receive a 1099?
In general, if a vendor meets all of the following four conditions then that vendor should receive a 1099.
• The vendor is not an employee of the school district
• Payment was made to the vendor in the course of your business
• Payment was made to an individual, partnership, estate, or in some cases, a corporation
• Payments made to the vendor during calendar year 2019 totaled $600 or more.
Common Examples of Vendors Who Get a 1099
This list has been comprised based on the most common questions presented by school districts and is therefore, not exhaustive. If you have questions about other individuals or companies you made payments to, we recommend you contact the IRS.
2019 Instructions for Form 1099-MISC
|Description |Yes |No |
|Royalties (ie one act plays, music, etc…) |If over $10 | |
|Professional Services Payments (examples: attorneys, accountants, architects, contractors, |If over $600 | |
|etc…) | | |
|Deceased employee wages pd after death |If paid in same year | |
|Employee Wages, travel reimbursements, benefits | |Use W-2 |
|Pmt to Independent Contractor, including travel reimbursements |If over $600 | |
|Employee business expense reimbursements | |Use W-2 |
|Rent pd by district for real estate, machines, land, etc… |If over $600 | |
|Medical/Health Care Pmts (examples: physicals for athletes) |If over $600 | |
|Payments to Auditors |If over $600 & |If part of a LLC or|
| |independent contractor |Corp |
|Companies, corporations, etc… | |X |
|Employees who do addl work for you after hours (example: painting a building during the | |Unless they have a |
|summer) | |true business |
| | |outside of school |
| | |employment |
Corrections
Corrections to Form 1099-MISC
If you need to correct a Form 1099-MISC that you have already sent to the IRS.
• For paper forms, see the 2019 General Instructions for Certain Information Returns, part H; see page 10.
or
• For electronic corrections, see Pub. 1220 – Sec. 11 – Corrected Returns.
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This guide provides the necessary steps to verify and produce 1099-MISC forms using the Finance application.
This guide assumes you are familiar with the basic features of the TxEIS Business system and have reviewed the TxEIS Business familiar with the basic features of the TxEIS Business system and have reviewed the TxEIS Business Overview guide.
Note: The Finance transactions are not affected when the 1099 work table transactions are deleted.
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Note: If the table is not populated with object codes and type payments, all transactions (regardless of object code) for each 1099-eligible vendor are extracted when the Create 1099 Work Table utility is processed. The table must be completed prior to printing the 1099-MISC forms.
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TxEIS Business
2019/11/20 09:50
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QuickGuide: Process 1099-MISC Forms
2019/11/20 09:50
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QuickGuide: Process 1099-MISC Forms
TxEIS Business
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