1099-MISC Miscellaneous Income Statement for Reporting Tax Information

By: GURUS Solutions

 

Use Case Scenario

In the US, contract workers or non-employees  with a payment of 600$ or more (USD for services rendered during a  calendar year,  must provide a Form 1099-MISC Miscellaneous Income Statement for reporting tax information.

In order for vendor payments to accrue on the 1099-MISC form, you must do the following:

Setup

1. Vendor record → Mark each vendor 1099 eligible

• Vendor record in financial subtab, and add default expense account

2. Account Lists → Update the threshold amounts for each category as you need, in/activate the 1099-Misc categories and add any comment

• Path: Setup > Accounting > Setup Tasks > Accounting Lists. Select 1099-MISC Category

3. Chart of Accounts → associate any accounts used to track 1099-MISC expenses with the right “1099 box”

  • Account categories can be used : “expense” or “other expense”
  • In “1099 Misc Category” field, specify which the 1099-Misc “box” to associate with the account (only “box” per account)

4. Accounting Expenses Categories → Link the proper Expenses Account with the Expense Category.

• Path: Setup > Accounting > Setup Tasks > Expense Categories

5. Vendor Bill / Sales Orders (SO) → use the right categories

6. Report → Prepare a 1099-MISC statement for a vendor

• Path: Reports > Sales Tax US > Form 1099-MISC

• Click on “Preview” to see:

• Click on “Print” to see:

Notes
  • Report shows by contractors the total amount for 1099 and what has been excluded
    • If some expenses billed are attached with a non-1099 account, the related amount will not been shown on the 1099-MISC form sent to the contractor, but will be shown on the 1099 report
    • Only expenses can be part of a 1099-misc report (items are excluded)
  • After having submitted the form, no change can be done anymore
  • Any data can be overridden if you like before printing
  • After having run a “1099-MISC statement” report once, you need to “reset” data (in “preview” view) it to add any additional payments done after the previous report preview
  • Print PDF has to be set up using the US tax preformat

About GURUS Solutions

GURUS Solutions is the largest Oracle NetSuite ERP services provider across all of North America. With locations and consultants in both the U.S. and Canada. Contact Us Now!

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