Create a 1099 Export File

Overview

1099 data in Accounting Seed can be created and exported into a CSV (comma-separated values) file from the Cash Disbursement list view. This file can then be uploaded to a 1099 printing service, such as Yearli. 

Note: The new 1099 Export is only supported with the Lightning UI.

In order for 1099 data to be included in the CSV file, the 1099 Vendor checkbox must be selected on the Account or Contact. Additionally, the following data should also be populated for each Account and Contact since it is required by the IRS to file a 1099:

• Taxpayer Identification Number
• Default Form 1099 Type
  Important: For 2020 1099s, the correct effective year of 2020 and form type should be selected for each Account and Contact. If this information is not updated, when Cash Disbursements are created, the existing 1099 information that is already set up will be used, which may be the incorrect year and form type.
• Default Form 1099 Box  

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Create a 1099 Export File

1. Navigate to Accounting Home and click the Create Entries tab. Then, under the Expenses menu, click Cash Disbursements.
2. Select a desired list view (except the Recently View list view).
3. Click Create 1099 File.
   Note: You do not need to select any Cash Disbursements from the list view prior to clicking this button. When the Create 1099 File button is clicked, the system will scan all Cash Disbursement records that have the 1099 Vendor field enabled and match the selected Form 1099 Type and Ledger.
   
   
   Note: Click here to view the above image in full screen. 
   
   The Create 1099 File intermediate screen displays.
   
   Note: Click here to view the above image in full screen. 
   
   
4. Select the following information from the drop-down lists:
   1. 1099 Reporting Year
   2. Form 1099 Type
   3. Ledger.
5. Click Submit. 
   Note: If any 1099 Vendors match the selected criteria, a 1099 CSV file will be sent to your email address. If you know that 1099 Vendors match the selected criteria, but you do not receive an email in your Inbox, check other email folders, such as "Junk" in case the email went into a different folder. 
   
6. Click Back.
7. (Optional) If you need to create a 1099 file for a different 1099 Reporting Year, Form 1099 Type, and Ledger, click Create 1099 File again. Then, select the appropriate information from the drop-down lists, and click Submit.

A sample 1099 CSV export file displays below.


Note: Click here to view the above image in full screen. 

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Review the 1099 CSV Export File

The 1099 data should be reviewed for accuracy by crosschecking the file amounts against a management report on the Cash Disbursements object for the data records in the effective 1099 year. Run the Cash Disbursements report by payee and crosscheck the data against your 1099 CSV file. 

Several common reasons why your 1099 CSV file may not match your reported Cash Disbursements include the following:

• The Account or Contact is not set up as a 1099 Vendor. If an Account or Contact is not set up as a 1099 Vendor they will not show up in the 1099 CSV export file. You can enable a 1099 Vendor from the Update 1099 Info button on the Account or Contact.
  
                                                               -and/or-
  
  
• The Cash Disbursement is not recorded to the correct Ledger. It is possible to have a Cash Disbursement that you were intending to post in the Ledger selected for 1099 reporting actually post in an alternate Ledger.

Modify the 1099 CSV Export File

It is possible that certain distributions to a 1099 Vendor should be excluded in a 1099 report. For example, you may have an arrangement with a contract employee where travel expenses are reimbursed by the company and are not true income to the 1099 Vendor. In this case, we recommend you run reports on the Payables object to search for specific Payable Lines that should be aggregated and deducted from the 1099 export file. The export file can be modified in Excel or any text editor prior to sending it to a 1099 filing or printing vendor.   

Non-Categorized Payments

The CSV 1099 export file includes a “Non-Categorized Payments” column heading, which should be reviewed. The column heading includes amounts for Cash Disbursements that did not include a 1099 form type and 1099 form box. The 1099 form type and 1099 form box was either not selected or the incorrect form type and box was defaulted from the Account or Contact, and not updated on the Cash Disbursement. 

Best Practice: While you can copy/paste the amounts on the CSV 1099 export file (spreadsheet) that display in the Non-Categorized Payments column heading into the correct columns, it is recommended to update the Default 1099 Form Type and Default 1099 Form Box on the Account or Contact. Additionally, you can select the appropriate 1099 Form Type and 1099 Form Box on the affected Cash Disbursements. Then, re-run the CSV 1099 export file. 

Currency Columns
If your organization (org) has Multi-currency enabled, the CSV 1099 export file includes a Source Record Currency column heading, which is the currency of the Cash Disbursement source records. Additionally, there is a 1099 Reporting Currency column heading, which is the Ledger currency. The amounts will be summarized on the CSV 1099 export file in the Ledger's currency. 

Note: Once the 1099 CSV file has been exported and reviewed, it can be imported into a 1099 printing application or service, such as Yearli.

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