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Vendor 1099 FAQs |
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Applies to: [x] C&P Classic [x] C&P Pro [x] Job Tracker [x] C&P SQL [x] My C&P! See also: |
Summary: Frequently-asked
questions about automatic media accruals in Clients & Profits.
Clients & Profits automates a typically time-consuming and
error-prone annual ritual -- printing year-end 1099 reports and tax
forms for vendor payments. You'll find step-by-step instructions for
tracking and reporting vendor 1099 payments in the Job Costing chapter
in your Clients & Profits user guide. You'll find answers to commonly-asked
questions about 1099s below.
Q. Are the amounts on the 1099 reports coming from A/P, the checkbook, or the General Ledger? 1099s are based exclusively on posted checks.
Purchases paid for by check are totaled by payee on 1099
reports and forms. Q. Do we have to print 1099 forms? No, they don't have to be printed from Clients &
Profits. But you are required to report vendor payments
over $600 to the IRS. If you don't print them from
C&P, you'll need to type them up manually. Since
1099s are compiled automatically from the checks you've
written all year, it's much faster to print forms from
Clients & Profits. Q. I've written checks to freelancers who aren't set up as vendors. Will they still get a 1099 form? Yes. 1099 forms are printed for every payee who's
received more than $600 in checks during the year. They
will be printed for both vendors, freelancers, and
one-time suppliers -- anyone who was paid by a check.
Q. Why would I use the 1099 "preview" report? The 1099 Preview report helps you verify that the
year's checks are correctly categorized as "reportable"
or "exempt." The right category depends on the type of
payment you are making, as well as the payee (be sure to
see the IRS instructions or your CPA for guidance here).
Don't be concerned with the dollar amount of the checks
at this point, since Clients & Profits will not print
a 1099 form for a payee who is under the IRS limit
(currently $600). Note that the report will list every
check within the date range you specified on the report.
The report is divided into two sections: 1099 reportable
payments and 1099 exempt payments. This is driven by the
1099 checkbox on each individual check. Be sure the
checks are categorized properly before printing 1099
forms. (The 1099 status on a check can be edited without
unposting the check). The 1099 "preview" is a good report
to send to your CPA if they prepare your 1099 forms.
Q. Why can't I edit the payee address which prints on my 1099 reports and forms? The address that appears on 1099 reports and forms is
copied from the payee's first and last check. For
vendors, the address is copied from the vendor account to
each check when it is written. (The vendor address on the
actual 1099 form is shorter than the addresses included
in Clients & Profits. For this reason, avoid using
the middle address line in the vendor account and on
checks.) Q. Why can't I edit the taxpayer ID number which prints on my 1099 reports and forms? Like the vendor's address, the taxpayer ID is copied
from the first check for each payee. If a payee's first
check is not the earliest check (i.e., oldest based on
date check date), you'll need to edit the vendor's
address and taxpayer ID number on both checks. Q. Why would I use the 1099 Summary report? The 1099 Summary report assists you in preparing the
IRS transmittal form for 1099s. It counts the number of
1099 forms printed as well as the total dollar amount.
You can also compare the preview and summary report for
your own audit purposes. Q. I have payments other than non employee compensation to report. How do I make the amounts appear in the correct box on the 1099 form? Clients & Profits will only print amounts in the
"non employee compensation" box. If you have other types
of reportable payments, you will need to manually type
these 1099s. Q. Can 1099 forms be printed on an ink-jet printer? Yes. While Clients & Profits can print 1099 forms
on any ink-jet or laser printer, there may be alignment
problems depending on your printer's capabilities,
installed fonts, and operating system. It's a matter of
trial-and-error until the forms are printed successfully.
(You might even have to try several printers.) Q. Where do I get the blank 1099 forms? Clients & Profits uses standard one-part, laser-compatible 1099 forms. They are available from check printers or many office supply stores. To ensure compatibility with Clients & Profits, order your 1099 forms (Form Number 82634) from Deluxe Business Forms. Deluxe Business Forms can be reached at 800-336-4168. Use the following ID code when ordering 1099 forms from Deluxe Business Forms: T017101 Or click on their logo to order 1099 forms online:
Q. How do I get copies of the 1099 forms? You can either print the 1099 forms over again on
plain paper, or make photocopies of the printed forms.
Q. How do I align my 1099 forms when printing? The 1099 forms are designed especially for laser
printers, and should work without adjustments. If not,
the margins can be adjusted by editing the 1099 form's
report parameters. Choose Report Parameters from the
Utilities menu, which is under the Setup menu. Click once
on the 1099 report format, then click Parameters.
Different kinds of printers have different settings, so
use trial-and-error to find the right margin settings to
match your printer. If you're having trouble with the
form's alignment, try choosing the "larger print area"
option in the printer's Page Setup dialog box (which
appears before the forms are printed). Q. I adjusted the margins on my 1099 forms but they still are not properly aligned. What do I do? Alignment can be tricky with the wide variation in
fonts, computers, and printers available today. All of
these variables can cause the spacing to differ enough to
throw off the forms. The 1099 form can be difficult to
align exactly since the blanks both vertical and
horizontal margins are narrow. If you have access to
another printer, try it next. (Often there will be a
slight variation between printers that is just enough to
do the trick.) Or, try using the same printer from a
different computer. The font setup in the two computers
may be slightly different, enabling you to print the
forms. It may be a matter of trial-and-error to make the
forms work. Q. The fonts on my computer may be throwing off the alignment -- what should I do? Again, trying another computer is the simplest step to take. The installed fonts on the other computer might correct the alignment. If not, try the following: 1) Choose Setup > Utilities > Report Fonts. 2) Click on the "report fonts" radio button (be sure to distinguish the "window" fonts from the "report" fonts). 3) Make sure report font #4 column is "Courier" (which is monospaced font). Look for an area at the top of the window labels "fonts installed on this Macintosh system". Scroll down and make sure there is a font called Courier. ("Courier New" or any other type of Courier is not sufficient). It is possible that Courier is not installed on the computer. 4) Check the fonts in your system folder. Make sure only Truetype Courier is installed. Postscript fonts will throw off the alignment. TrueType Courier is in the standard font distribution
with Mac OS 7.0 or later. However, many shops delete the
truetype fonts in favor of Postcript, which is used by
many graphics programs. Q. I've tried everything, but still can't get the
forms to align properly! What can I do next? Q. How do I record vendors that are dba's? Clients & Profits totals checks written to the same vendor for
1099 totals. Enter the vendor code as the individuals name plus dba
company name. Once the vendor code is setup accounts payable invoices
and checks will be paid with the same name combination. 1099 forms
will list the vendor and the dba in the recipient box as well.
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