1 / 32

Best Practices and 3 Alternative to Generating Your 1099s

Best Practices and 3 Alternative to Generating Your 1099s. Content Provided by: Zubin Gidwani, Dynamic Budgets Christy Smith, IronPlanet Mike McDowell, Sta-Home Health & Hospice. Regional Chapters. Agenda. Potential Changes for Expanded Reporting

jadon
Download Presentation

Best Practices and 3 Alternative to Generating Your 1099s

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Best Practices and 3 Alternative to Generating Your 1099s Content Provided by: Zubin Gidwani, Dynamic Budgets Christy Smith, IronPlanet Mike McDowell, Sta-Home Health & Hospice Regional Chapters

  2. Agenda • Potential Changes for Expanded Reporting • Sample Sql views to review the pending impact • Best Practices • Tin Match to avoid CP2100 Notices, B Notices, Backup withholding and potential fines • Standard 1099 reporting from within GP • Inline Print/Mail/eFile service with GreenShades • Stand Alone alternative Print/Mail/eFile service with 1099Pro. • 3 approaches to managing 1099s • Native Dynamics GP Printing & manual filing • Greenshades –GP integrated software with service bureau offering • 1099Pro – stand-alone software with service bureau offering

  3. Proposed Health Care Bill Expanded Reporting Changes for 1099s 1099 filing for Purchase Card transactions (Corporate Credit Cards) will shift from end-user organizations to the financial institutions(except for federal, state and large local governments to report all payments through any payment method) • http://www.napcp.org/news/48517/IRS-releases-final-regulations-related-to-1099-reporting-changes-for-2011.htm

  4. Sample SQL Query for 1099 amounts based upon Payables Transactions: Disclaimer: SQL Scripts can damage or destroy data. Use these scripts with caution on a test system first. Backup your database before using. Use the following scripts at your own risk. We take no responsibility for any harm or data loss caused by these scripts nor do we warranty the validity of the results. The scripts are provided to assist your 1099 research activities, and must be independently validated against core system reports should you attempt to use these for final data extraction.

  5. Sample SQL Query for 1099 amounts based upon Payables Transactions (TEN99Type>1 will exclude “not 1099” vendors) SELECT TOP (100) PERCENT CAST(DB_NAME() AS char(5)) AS CompanyDB, dbo.PM30200.VENDORID, SUM(dbo.PM30200.DOCAMNT) AS SumOfDOCAMNT, dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2, dbo.PM00200.CITY, dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1, dbo.PM00200.TXIDNMBR, dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, SUM(dbo.CM20200.TRXAMNT) AS Expr1, dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1 FROM dbo.CM20200 INNER JOIN dbo.PM30200 ON dbo.CM20200.CMTrxNum = dbo.PM30200.DOCNUMBR AND dbo.CM20200.CHEKBKID = dbo.PM30200.CHEKBKID INNER JOIN dbo.PM00200 ON dbo.PM30200.VENDORID = dbo.PM00200.VENDORID WHERE (dbo.PM30200.DOCDATE > CONVERT(DATETIME, '2009-12-31 00:00:00', 102)) AND (dbo.PM30200.DOCDATE < CONVERT(DATETIME, '2011-01-01 00:00:00', 102)) AND (dbo.PM30200.VOIDED = 0) AND (dbo.CM20200.VOIDED = 0) GROUP BY dbo.PM30200.VENDORID, dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2, dbo.PM00200.CITY, dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1, dbo.PM00200.TXIDNMBR, dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1 HAVING (dbo.PM00200.TEN99TYPE > 1) AND (SUM(dbo.PM30200.DOCAMNT) >= 600) ORDER BY dbo.PM30200.VENDORID

  6. Sample SQL Query for 1099 amounts based upon Payables Transactions(excluding the TEN99Type>1 filter will show you how many 1099s you would need to file if the Health Care Bill requires 1099s to be issued for all purchases > $600) SELECT TOP (100) PERCENT CAST(DB_NAME() AS char(5)) AS CompanyDB, dbo.PM30200.VENDORID, SUM(dbo.PM30200.DOCAMNT) AS SumOfDOCAMNT, dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2, dbo.PM00200.CITY, dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1, dbo.PM00200.TXIDNMBR, dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, SUM(dbo.CM20200.TRXAMNT) AS Expr1, dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1 FROM dbo.CM20200 INNER JOIN dbo.PM30200 ON dbo.CM20200.CMTrxNum = dbo.PM30200.DOCNUMBR AND dbo.CM20200.CHEKBKID = dbo.PM30200.CHEKBKID INNER JOIN dbo.PM00200 ON dbo.PM30200.VENDORID = dbo.PM00200.VENDORID WHERE (dbo.PM30200.DOCDATE > CONVERT(DATETIME, '2009-12-31 00:00:00', 102)) AND (dbo.PM30200.DOCDATE < CONVERT(DATETIME, '2011-01-01 00:00:00', 102)) AND (dbo.PM30200.VOIDED = 0) AND (dbo.CM20200.VOIDED = 0) GROUP BY dbo.PM30200.VENDORID, dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2, dbo.PM00200.CITY, dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1, dbo.PM00200.TXIDNMBR, dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1 HAVING (SUM(dbo.PM30200.DOCAMNT) >= 600) ORDER BY dbo.PM30200.VENDORID

  7. Best Practices Review Vendor Maintenance: • Perform Tin Matching as part of the New vendor creation process • “Offer” to withhold payment until correct information is submitted and validated • Near final bulk TIN match in December • Double Check record validity • Validate EIN vs. SSN number format • Review for appropriate box types (rent, medical) • Reminder: Box 14 Gross Proceeds paid to an attorney is for legal settlements only. Legal Services are recorded under Box 7 non-employee compensation

  8. Why Tin Match • Requirement for Payer To Secure a TIN Initial solicitation - for all payees, you must make the initial solicitation when the payee opens an account or when the transaction occurs using Form W-9 to request the taxpayer identification number. • The CP2100 or CP2100A NoticeCP2100 and CP2100A notices are notices that inform a payer that he or she may be responsible for backup withholding. This may be due to missing or potentially incorrect taxpayer identification numbers identified during the processing of Form 1099 information returns. It is accompanied by a listing of missing, incorrect, and/or not currently issued payee TIN. Large volume filers (250 or more erroneous documents) receive the CP2100 notice, while all other filers receive the CP2100A notice. • Payers face potential fines of $50 per each 1099 filing with a missing or invalid TIN • "B" NoticeIf the IRS sends you a "B" notice indicating an incorrect payee TIN, you are required to backup withhold28% from a payee no later than 30 days after receipt. Backup withholding until the payee furnishes a TIN and certifies that it is correct.

  9. IRS Tin Matching • Various 3rd parties will submit on your behalf (~$135 for up to 100,000 records) • Free through IRS e-services • Program Summary http://www.irs.gov/govt/tribes/article/0,,id=131207,00.html • TIN Matching tutorial https://la2.www4.irs.gov/PeopleBooks/CRMPROD/Training/3pdev/3ptin/tinbulk1.htm • Required IRS e-services Personal Registration Information • Legal name (verified with IRS & SSA records) • Social Security Number (verified with SSA records) • Date of birth (verified with SSA records) • Telephone number , E-mail address • Adjusted Gross Income (AGI) from either your current year or prior year filed tax return (verified from IRS records) • Home mailing address (verified from IRS records). If you have moved since you last transacted with the IRS, please update your information when registering.

  10. TIN Matching The TIN Matching e-services allow “authorized payers”  the opportunity to match 1099 payee information against IRS records prior to filing information returns. An authorized payer is one who has filed information returns with the IRS in at least one of the two past tax years.  • Interactive TIN Matching will accept up to 25 payee TIN/Name combinations on-screen • Bulk TIN Matching will allow up to 100,000 payee TIN/Name combinations to be matched via a text file submission. Both programs will: • Match the payee with W-9 name and TIN with IRS records; • Decrease backup withholding and penalty notices; • Reduce the error rate in TIN validation. The TIN Matching system is accessible 24 hours a day, 7 days a week. 

  11. TIN Matching Results Tin1 Name 1 Tin2 Name 2 Tin3 Name 3 Tin4 Name 4

  12. Native Dynamics GP 1099 Process • Allows you to print 1099s for recipients • Does not generate the Federal summary report, it has to be manually created, it isn’t created in GP…. • Must manage filing or efiling process on your own

  13. Vendor Cards From the Vendor Card you go into Options to view the Tax Type and 1099 Box

  14. 1099 Details To view & Edit 1099 detail information: Cards -> Purchasing -> 1099 Detail To view 1099 detail: Inquiry -> Purchasing -> Vendor 1099 Details

  15. Printing 1099 To Print: Tools-> Routines -> Purchasing -> Print 1099 Enter your Company information to be printed You can print all Vendors or enter a range Print option for printing an alignment only form

  16. Edit 1099 Form If the form alignment does not match your forms you will need to print to screen and edit in report writer. From the screen shot of the alignment form Click ‘Modify’ Once changes are made File->GP will return you to GP

  17. Look for changes in forms with GP software updates For the 2010 year end, an updated 1099-INT form was released introducing a new box 10, and changing the positioning of boxes 8/9. Such changes are typical each year, so be sure to refer to Year End updates to ensure your program is up to date: Sample Links: GP2010 Year End Update https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye2010.htm?printpage=false&stext=2010 1099-INT GP10 Year End Update https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye10.htm?printpage=false&stext=2010 1099-INT GP9 Year End Update https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye9.htm?printpage=false&stext=2010 1099-INT

  18. Dynamics GP enhancement requests https://connect.microsoft.com/ • Submit your feedback directly via the connect URL (left) or from the Communities Portal, Resources > Product Suggestions • Add Federal Summary Report to support 941 filings • Explore eFiling possibility • Other?

  19. Greenshades http://www.greenshades.com • An integrated GP Module for W2 and 1099 printing and efiling

  20. Prints recipient copies of Federal W-2 and Federal 1099s directly to Blank Paper Perforated Paper and Envelopes available Print all forms, single form, or range of forms www.downloadmyform.com Search information on forms to print Secure administrator controls over all functionality Single source management of forms distribution, corrections and changes Full reporting functionality including: Employee requested changes Print history Electronic filing confirmations Totals by company, state, dept or many more Year End Forms Printing

  21. Administrator Control Screen

  22. FormsEditing • Edit Form Information in Visual Forms Viewer • Error Checking and Auto-Summing Fields

  23. Offer electronic reprints available directly from a recipients home/office computer Print, Edit, and Re-issue easily Perforated Paper and Envelopes available Mail Service Printing, stuffing, and mailing Includes postage for as low as $1.05 per form Recipient Distribution

  24. Employee Access Screen

  25. Cost Comparison Greenshades & 1099Pro

  26. 1099Pro • http://www.1099pro.com • Stand-alone software alternative • Allows you to print on plain paper • Turnkey Service Bureau offering • Web presentment • SAS 70 certified (if you have SOX/IT/Audit requirements)

  27. 1099Pro Import Template(tab delimited files from Excel)

  28. 1099Pro Software Interface Recipient Information concealed for confidentiality in this presentation Recipient Information concealed for confidentiality in this presentation

  29. 1099Pro form edit screen

  30. Summarize – 3 Methods Featured • Native Dynamics GP Printing & manual filing • Greenshades –GP integrated software with service bureau offering • 1099Pro – stand-alone software with service bureau offering

  31. Questions?

More Related