Steps for auditing your 1099 data prior to generating the printed or electronic 1099 forms:
All vendors receiving 1099 forms should have a 1099 code flagged on each appropriate line of their transactions. This can be done in the module in which the posted entry exists, or in the Tax Cycle/1099 Adjustment Entry area within each Show.
If using the Consolidate 1099 module, select the desired production company, and then modify vendor 1099 codes. Any updates made to this area will update within the individual show databases.
Individual Social Security Numbers
If the vendor is an individual, an accurate social security number should be listed in the Vendor Maintenance screen. This number can be found on the W9 form that was submitted by the vendor. If a social security number is listed, an individual’s name, not a company name, must be on file.
Non-Corporations with Tax ID numbers
If a vendor is not a corporation, but provided a tax ID number instead of a social security number, ensure the correct business/individual name from the W9 form is listed. When the IRS receives 1099 forms, they verify that the tax ID number listed matches the name they have on file for the number. The vendor should have provided this information accurately on their W9 form.
Check for Duplicate Vendors
Sometimes a mistake is made, and two vendor accounts are created for the same person. The system will identify these when generating the 1099 Exception report located within the ‘1099 Filing and Reports’ or ‘Consolidate 1099’ modules.. If duplicates exist, there are a couple ways this can be remedied:
- If only a couple of transactions exist for the incorrect vendor, the transactions can be canceled/reversed for the incorrect vendor, and then entered to the correct vendor’s account. The incorrect vendor can then be inactivated to prevent future usage.
- If many transactions exist on the incorrect vendor, the sum total of all items can be made in a single Journal Entry to the correct vendor. The JE can debit and credit the same account, so as not to affect any reporting; however, only the debit line will be tagged with the 1099 code. This will provide accurate 1099s; however, Vendor History reporting will have to be run on both vendors.
- If you wish to leave the data as is, you can access individual transactions and update the V1099 field on each line to apply the amounts to the correct vendor.
1099 forms are mailed to the addresses on file. If they are incorrect, the vendor may not get their form in a timely manner.
Note: MediaWeb allows for a separate 1099 address within the Vendor Maintenance module, inside the ‘Optional Vendor Address and Information’ tab. This address will only be used when printing 1099s, if activated.
- All Recipient (Copy B) 1099 forms must be postmarked by January 31, 2020.
- If reporting non-employee compensation (Box 7):
- All Federal (Copy A) 1099 printed forms must be postmarked by January 31, 2020.
- All Federal (Copy A) 1099 electronic filing must be uploaded to the IRS site by January 31, 2020.
- If NOT reporting non-employee compensation (Box 7):
- All Federal (Copy A) 1099 printed forms must be postmarked by February 28, 2020.
- All Federal (Copy A) 1099 electronic filing must be uploaded to the IRS site by March 31, 2020.
Media Services Software Support: 310 471 9385