About Federal 1099 Forms
You must use the Federal 1099 tax form for contract laborers and employee expenses. These amounts are not paid through the payroll application. Instead, these expenses are set up as vendors in the Vendor database and are paid through Accounts Payable. For instructions on creating vendors, see Adding a Vendor. For information about A/P, see Accounts Payable. Federal 1099 forms are printed through the (V) Personnel/Payroll Reports screen. For information on printing these forms, see Printing Federal 1099 Forms.
Contract Laborers
When you create vendors for contract laborers in the Vendor Master tab, there are several guidelines you should follow. For example, you must enter the laborer’s social security number in the Acct # box. In the Code box, reserve and assign a specific range of vendor codes to contract laborers. Doing so lets you limit the report to contract laborers when you print Federal 1099 forms. This also excludes those records from purchasing procedures. You should also make sure that you enter the correct general ledger account number in the G/L # box.
Employee Expenses
When creating vendor records for employee expenses in the Vendor Master tab, use the employee’s social security number as the vendor number in the Acct # box. Assign vendor codes within a range that is reserved for employee expenses. This lets you limit the report to employee expenses when you print federal 1099 forms. It also excludes those records from purchasing. In the G/L # box, make sure you enter the appropriate general ledger number.