To set up a 1099 Vendor:  Line #17-Customer Number is for either the EIN or Social Security Number of your vendor that will print out on the 1099 form.  On line #18 Product type you can put what kind of service you received from your vendor  (ie, Rents, Accounting, Labor etc. this is for your information only and will not print out on the 1099 form). 

You will need to establish codes for line #19, however you should enter codes that make sense to you.  You can use up to 6 characters.

1st Character:  Enter the payment types (1-11) as defined (see attached sample 1099).  This is the most important character as it will place the dollar amount in the right section when printing your 1099 form.

2nd Character:  Enter the letter B for a Business or I for an Individual (optional).

3rd Character:  Enter the letter N for non-employee, R for Rents, M for Medical payments, L for Labor only, etc.  (optional)

4th - 6th:  These character are user defined, but remember do not get to complicated "the shorter is the better" and can be left blank and which most users will leave blank.  (optional)

SAMPLES:        1BS = Rents, Business, Storage

2IN = Royalties, Individual, Non-Employee 

3BS = Other Income, Business, Non-employee

5BS = Fishing Boat, Business, Non-employee

6BS = Medical Payments, Business, Non-employee

7BS = Non-Employee, Business, Non-employee

8BS = Substitute Payments, Business, Non-employee

revised 01-23-97

RUNNING REPORTS

Through Accounts Payable go to #5 Print Reports.  First print a Vendor List which will list all your Vendors that need to receive a 1099.  Sort by using #4 - 1099 Type.  Vendors names will be start to end, starting 1099 type will be number 1 (if you do not start with number 1 but start with number 2, the sorting will not pick up the rents your have paid), your ending letter will be Z,  this will catch all your letter coding.  Next run a Master Report using the same procedure as running the Vendor List.  This report will give you your year to date figures for each Vendor and is needed as back up to keep with your copy of the 1099 forms and transmittal form.

PRINTING 1099-MISC. FORMS

If running on a laser printer using plain paper for forms except for the IRS copy which must be on the red ink preprinted forms, you must upload the format to the printer first.  This is done from the Application menu, Laser forms.  See attached exhibit.

Then both Dot Matrix and Laser printer users need to go to Accounts Payable to #5 Print Reports.  Select print 1099 Forms.  Starting 1099 type will be number 1; Ending type will be the letter Z;  Vendors will be start to end; Break amount is $599.99; Print Test is optional; Print Laser form will be P for preprinted.  Hit F4 to print, it will tell you t o load copy A into the printer (remember to load as many form A as you have Vendors), next it will prompt you to load copy 1, then load copy B and finally load copy 2. 

The next step will be to fill out (by hand) your transmittal form that is self explanatory.  Send copy A along with transmittal to the IRS, copy 1 is for your records (be sure to attach all your reports and work sheets), copy B and copy 2 are for the Recipient.

Final date for mailing 1099's to Vendors and filing with the IRS is January 31 for the prior calendar year.

SUMMARY OF STEPS

1.  Immediately send an I-9 Request for Taxpayer Identification as soon as you do business with someone who is subject to get a 1099 even if they haven't reached the treshold yet.

2.  Order your 1099 forms, preferrably in late November or early December.  Consider ordering your W-2's, W-4's, W-6's, DE-6's and DE-7's.  It might be a good idea to take an inventory of all your custom printed forms as well such as: checks, invoices, statements, envelopes and letterhead and order all the forms you need.  You should be able to get a better price.

3.  In December or early January, review your A/P VENDOR LIST for ommissions on those who maybe getting a 1099.

4.  Check your 1099 format in Cougar Mtn-A/P Profile Mtn, Form Maintenance, 1099 Maintenance.

5.  Final review of A/P VENDOR LIST and a sample print of 1099's on plain paper.

6.  After fixing any problems, load the 1099 forms and print.

7.  Separate forms and mail to the vendor, to the IRS with transmittal and file the companies copies.