Smart Accounting 1099-MISC and ICR Notes: 2017 Table of Contents

Transcription

1 Smart Accunting 1099-MISC and ICR Ntes: 2017 Table f Cntents 1099-MISC 1099-MISC Overview Prcessing Overview... 3 Printing a 1099 Wrksheet Reprt Line Items Edits... 5 Printing 1099 Frms Summary Reprt IRS Transmittal Prcess Sample Frm Independent Cntractr Reprt (ICR) Hw t Reprt t EDD EDD Transmissin Prcess EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

2 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 2 f 19 Smart Accunting 1099-MISC and ICR Ntes: MISC Overview Imprtant Pints f Interest The IRS will accept 1099 filings nly thrugh its Filing Infrmatin Returns Electrnically (FIRE) uplad site if there is an excess f s. If filing fewer than 250 frms, the IRS will accept paper r electrnic filing. If yu have any questins, please cntact the Infrmatin Reprting Prgram (IRP) at Use f the IRS FIRE system requires an IRS-assigned Transmitter Cntrl Cde (TCC). The client can btain their wn TCC number frm the IRS. Refer t fr mre infrmatin. Alternatively, the client has the ptin t have Entertainment Partners (EP) transmit n the prductin s behalf using EP s TCC number. Please refer t the EP Website fr pricing and rdering infrmatin. Yu may als send an t supprt@ep.cm r call Service and Supprt at fr further assistance. The IRS Federal tax limits remain at $ fr bxes 01, 03, 06, and 07, and $10.00 fr bx 02. An ptin has been added in the Tax Reprt mdule t srt by Vendr Name, TIN Name, r Tax ID. Vendrs wh are missing Tax ID infrmatin will always shw up first in the Tax Reprt, regardless f the srting ptin selected Vendr frms must be pstmarked n later than January 31, MISC frms are available in mst ffice supply stres, can be rdered frm the IRS by dialing , r thrugh Frm Cnsultants by dialing IRS paper filings fr all Federal and State 1099-MISC and 1096 Frms must be pstmarked n later than January 31, The electrnic filing deadline is January 31, FIRE Uplad files will nt be accepted after January 31, EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

3 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 3 f Prcessing Overview 1099 prcessing cnsists f five steps. The first is t review existing transactins fr crrect 1099 cding. This is accmplished by printing a 1099 Wrksheet reprt. Review f the reprt allws users t determine if 1099 cde adjustments are necessary. The secnd step is t crrect existing transactins fr 1099 cde adjustments. The 1099 Edit mdule is used fr this step. The third step is t print 1099s n preprinted frms. The furth step is printing the 1099 Summary reprt. The fifth and final step is the creatin f the IRS transmittal file. Printing a 1099 Wrksheet Reprt On the Start menu, select Reprts. On the Submenu, select Ledger Reprts. In the Reprt Grup list, select 1099 Reprts. In the Reprt list, select 1099 Tax Wrksheet Detail/Edit t display the fllwing Reprt Parameters screen: Figure 1: 1099 Wrksheet Reprt Parameters screen EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

4 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 4 f 19 The Reprt Date is ptinal, but if a date is selected, it prints in the Masthead f the reprt. If yur prductin is multi-currency, then select USD in the Select Currency Cde bx (required entry). Select the apprpriate Tax Year. The Tax Year list displays nly thse years that are relevant t the prductin. Fr instance, if the prductin began in 2014, the list will nt include tax years prir t the prductin s last start year. The system defaults t the crrect Cmpany and Prject(s) values established fr yur prductin d nt change these values. All ther fields serve as additinal filters and are nt required. On the Ribbn, select Run Reprt r press F5 t generate the fllwing reprt: Figure 2: 1099 Wrksheet Reprt Use the reprt t identify transactin line items that need 1099 cde crrectins. Then, cntinue t 1099 Edits in the fllwing sectin. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

5 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 5 f Line Items Edits The 1099 Edit mdule prvides users a means t crrect 1099 cding n transactin line items entered during a particular Tax Year. Users may add, delete, r change 1099 cdes n transactin line items. Additinally, the mdule prvides a methd t split transactin line amunts int multiple lines. Abut Distributin Lines The 1099 Edit grid will display the fllwing distributin line item types: Distributin lines frm psted Accunts Payable Invices, Petty Cash (including Per Diem and Purchasing Card transactins), and Jurnal Entry transactins that match the filtering cnditins established. Payrll Line items cded with a 1099 cde will als display. Fr thse Payrll lines entered withut a tax cde that need t display, mem cde changes can be entered. T d s, access the Jurnal Entry mdule, search fr the apprpriate transactin, and then enter 1099 cdes n the desired line items. Upn saving the mem cde change, return t the 1099 Edit mdule and reinitiate yur Tax Year search; the line items will nw display. The 1099 Edit grid will nt display: Distributin lines frm nn-psted transactins. Distributin lines frm deleted transactins. Distributin lines frm reversed transactins. A reversed transactin is a transactin that has been psted and then selected t receive a reversing transactin. The lines frm the riginal transactin will nt appear. Distributin lines frm reversing transactins (this is the ffset transactin generated when a transactin is reversed). Distributin lines frm the riginal invices and reversing invices generated when the check that paid the riginal invice is vided. Distributin Change transactin line items that have been subject t a Distributin Change. Distributin lines that are the ffset (reversing line) fr a distributin change. System Tax Year and Vendr Behavir Accunts Payable Invices The system ppulates the Tax Year f the invice based upn the system date when the invice was created. Once the invice is psted, the Tax Year n any f the invice s detail lines can be mdified thrugh the 1099 Edit mdule. If the Tax Year is changed n any detail line, the system will autmatically change the tax year n all line items fr all invices that were paid by that particular check. This includes distributin change lines fr any f the assciated invices. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

6 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 6 f 19 Vendrs The system prhibits changing the 1099 Vendr n Accunts Payable Line items Vendrs can be changed n Jurnal Entry and Petty Cash transactins Edit Prcess Flw On the Start menu, select Maintenance. On the Submenu, select 1099 Edit. The mdule shwn in Figure 3 will display. Figure 3: 1099 Edit mdule The 1099 Edit screen is divided int tw sectins. The tp sectin allws yu t select filter cnditins that determine which transactins appear in the lwer Editing sectin f the screen. Fill ut the fields in the 1099 Edit mdule. Thse that are required are marked as such belw: Tax Year (REQUIRED): Select the apprpriate tax year. The Tax Year list displays nly thse years that have transactin activity. Only transactins entered within the selected Tax Year will appear n the grid. Currency (REQUIRED): If this is a single currency prductin, this field will default t the currency established as the Base Currency in the system. Otherwise, select USD when prcessing 1099s. Dcument Number: This nn-required filtering field can be used t lcate a particular transactin by its dcument number. As an example, yu can use this field t lcate an Accunts Payable Invice by its Invice Number. When used, the system will return nly thse transactin line items assciated with the dcument number entered Cded Only: This is an unrequired checkbx. When selected, the system will return nly thse transactin line items that already cntain 1099 cdes. Transactin Type: This unrequired selectin field allws yu t filter by transactin type. When a transactin type is selected, nly line items f that transactin type will appear n the grid. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

7 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 7 f 19 Transactin Number: This unrequired entry field can be used t filter by a particular transactin number. Only line items assciated with that transactin number will appear n the grid. Vendr Frm/T Fields: These unrequired entry fields can be used t filter by a vendr r range f vendrs. Only line items assciated with the selected vendrs appear n the grid. Yu can use the secndary list t srt vendrs by Name, Cde, r DBA. Once all desired filter cnditins are entered, select the Search buttn n the Ribbn, r press F3 t ppulate the editing grid. Editing a Line Item The fllwing clumns are editable: 1099 Cde, Tax Year, Vendrs (excluding Accunts Payable line items), and Wrk State. T change any f these fields, simply navigate t the field, select the drp-dwn list, and select the desired value frm the list. Yu can make as many line item mdificatins as yu wish prir t saving yur changes. Select Save r press F6 t save yur edits. Changes are immediate. Psting is nt needed. Key Cncept: The system des nt allw mdificatin f existing line item amunts thrugh the 1099 Edit mdule. Users must generate a distributin change r enter a crrecting jurnal entry t accmplish this task. Create Tax Adjustment The Tax Adjustment screen prvides a means fr users t recrd tax adjustment amunts directly t vendrs withut having t create r mdify Accunts Payable, Petty Cash, Jurnal Entry, r Payrll transactins. Key Cncept: The system utilizes the Tax Adjustment clearing accunt (established in the System Defaults) fr creating the ffsetting entry, as seen in Figure 4 belw. Figure 4: Tax Adjustment screen with adjustment EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

8 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 8 f 19 In the table abve, the first line is the line entered by the user n the Tax Adjustment screen (see Figure 4). The secnd line is the system-generated line used t create a balanced, net-zer entry that has n impact n the prductin csts r balance sheet, nly 1099 tax reprting. Tax Adjustment Prcess Flw With the 1099 Edit mdule pen, n the Ribbn, select Create Tax Adjustment. Figure 5: 1099 Edit Mdule Ribbn Tax Adjustment Enter r select the Vendr t receive the tax adjustment. Figure 6: Tax Adjustment NOTE: Use the Vendr Type list next t the Vendr list t select the primary search means fr a vendr. Yu can select frm ne f five selectins: Vendr Name, Payee Name, Address 1, DBA, r Vendr Cde. The Tax Year and Currency will be pre-ppulated with the apprpriate values frm the 1099 Edit screen. Press Tab t navigate t the distributin line item entry grid. If yu established Tax Adjustment defaults in the System Defaults mdule, the apprpriate clumns will pre-ppulate with thse values. If nt, enter r select the: Accunt Enter the accunt fr the tax adjustment. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

9 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 9 f 19 Lcatin (this clumn will display nly when Lcatin cdes are in use) Enter the lcatin fr the tax adjustment. Episde (this clumn will display nly when Episde cdes are in use) Enter the episde fr the tax adjustment. F1 thrugh F4 (if instances f free field cdes have been established and assciated t a particular free field cde clumn, then that particular free field clumn will display) Enter the free field cde(s) fr the tax adjustment. Descriptin Enter the amunt f the tax adjustment. This is the amunt that will be cded t the 1099 cde and reprted t the gvernment Enter the apprpriate tax cde. Wrk State Enter the wrk state. Select Save r press F6 t save the entry. T cmplete the prcess, the system will assign and display a GL transactin number fr the tax adjustment. NOTE: Tax Adjustment transactins are autmatically psted upn save. T view the entire transactin (bth user entered distributin lines and system created ffsetting lines), run a GL Ledger List filtered fr the specific transactin number. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

10 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 10 f 19 Printing 1099 Frms This mdule is used t print 1099s. The mdule includes the ability t set filter cnditins that determine the inclusin f transactins and/r vendrs meeting thse filters cnditins. The sftware validates fr cmplete cmpany infrmatin, cmplete individual vendr addresses, and scial security numbers prir t printing. The mdule als prvides a means t enter specific infrmatin that will print n 1099 frms. Figure 7: 1099 Frm 1099 Printing Prcess Flw On the Start menu, select Maintenance. On the Submenu, select Print 1099 Frms. The mdule shwn in Figure 8 will display. Figure 8: Print 1099 Frms mdule The Print screen is divided int tw sectins. The tp sectin allws yu t select filter cnditins that affect which vendrs appear in the lwer Selectin sectin f the screen. Yu can als enter additinal infrmatin that will print n the 1099 frms. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

11 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 11 f 19 Fill ut the fields in the 1099 Frms mdule. Thse that are required are marked as such belw: Tax Year (REQUIRED): Select the apprpriate tax year. The Tax Year list displays nly thse years that have transactin activity. Only vendrs wh have transactins entered within the selected Tax Year will appear n the grid. Lcatin Cde: This unrequired entry field can be used t filter vendrs fr a given lcatin. Cntact Name: This unrequired entry field can be used t enter a cntact persn. This infrmatin will appear in the tp margin f each Cntact Phne: This unrequired entry field can be used t enter the cntact persn s phne number. This infrmatin will appear belw the Cntact Name in the tp margin f each Federal Tax ID: This field displays the Federal Tax Identifier number that is established n the Cmpany Setup screen. If yu need t mdify the Federal Tax ID, see the Cmpany header in the System Setup sectin. Exclude 1099 Incme Less Than $600: When selected, nly thse vendrs with ttal 1099 cded line items in excess f $ will appear fr selectin. Include DBA n 1099 Frm: When selected, if a vendr has DBA infrmatin recrded thrugh the Vendr Maintenance mdule, then that infrmatin will print in the Recipients bx n the 1099 frm. Crrected 1099 Frm: When selected, the system will mark the Crrected 1099 bx n the 1099 frm. Printing 1099s After entering Header field infrmatin and selecting the apprpriate ptins, click Search. The 1099 selectin grid will ppulate. T print 1099s, click the Selectin checkbxes n the left side f the grid t select vendrs. Switch frm ADD mde t TAX ADJUSTMENT mde by ging t File > Tax Adjustment. NOTE: Yu can use the Tag All and Untag All buttns t quickly select r deselect vendrs. Yu can als exprt t Excel. Lad 1099 frms in yur printer. Select the Print buttn n the Ribbn. 1099s will initially display in the Reprt Previewer. Select the Print Reprt buttn as shwn in Figure 9 belw: Figure 9: Print Previewer Tlbar EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

12 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 12 f 19 A Print dialg bx will appear, as displayed in Figure 10. Figure 10: Print Dialg screen Select the number f cpies yu wish t print frm this screen. Select the Print buttn. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

13 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 13 f Summary Reprt The 1099 Summary reprt prvides a breakdwn by Vendr, displaying 1099 ttals by 1099 cde. T run the reprt, fllw the steps listed: On the Start menu, select Reprts. On the Submenu, select Ledger Reprts. In the Reprt Grup list, select 1099 Reprts. In the Reprt list, select 1099 Summary t display the fllwing Reprt Parameters screen: Figure 11: 1099 Summary Reprt Parameter screen The system will default t the crrect Prject. D nt change this parameter. Enter the Tax Year yu wish t reprt upn. Yu can select the Exclude 1099 Incme Less than $600 ptin. On the Ribbn, select Run Reprt r press F5. The fllwing reprt will generate: Figure 12: 1099 Summary Reprt EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

14 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 14 f 19 IRS Transmittal Prcess This prcess cmpletes the 1099 cycle by generating a 1099 transmittal file. Several required fields must be cmpleted prir t generating the file. Transmitter infrmatin includes all infrmatin pertaining t the entity respnsible fr creating the transmittal file. The Payer infrmatin includes infrmatin fr the entity respnsible fr payment f 1099-dllar amunts. The Transmitter Cntrl Cde (TCC) is a cde issued by the IRS. Yu shuld apply t the IRS fr yur wn cde. IRS Transmittal Prcess Flw On the Start menu, select Maintenance. On the Submenu, select IRS Transmittal. The fllwing mdule will display: Fill ut the fields in the File Infrmatin sectin f the IRS Transmittal mdule. Thse that are required are marked as such belw: Tax Year (REQUIRED): Select the apprpriate tax year. Only vendrs wh have transactins entered within the selected Tax Year will appear n the grid. Transmitting Agent (REQUIRED): Type the name f the Transmitting Agent here. If yur cmpany is the transmitting agent, type yur cmpany name here. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

15 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 15 f 19 Transmitter Cntrl Cde (REQUIRED): Type the TCC cde f the Transmitting Agent here. NOTE: A Transmitter Cntrl Cde (TCC) is btained frm the IRS. Tax Identificatin Number (REQUIRED): Type the TIN fr the Transmitting Agent here. NOTE: A Tax Identificatin Number (TIN) is btained frm the IRS. Transmittal File Type (REQUIRED): Defaults t Original. This field prvides a list f the available transmittal file types: Original Crrectin Exclude Vendrs with Amunts Less Than $600: When selected, nly thse vendrs with ttal 1099 cded line items in excess f $ will appear fr selectin. Transmitter is a Freign Entity: If the transmitter is a freign entity, this checkbx must be selected. If the Ease Entertainment Services, LLC TTC is used, this checkbx is disabled. The checkbx becmes enabled if the Ease Entertainment Services, LLC TTC is remved. Payer is a Freign Entity: Defaults t nt selected. If the Payer is a freign entity, users must select this checkbx. Prir Tax Year: If the infrmatin cntained n the IRS Transmittal reflects a tax year ther than the current tax year, this checkbx must be selected. Cmbined Federal/State Flag: By selecting this checkbx, a cde will be generated n the transmittal file indicating that the file can be released by the IRS t qualifying states. The IRS publishes a list f which states qualify. There is als an IRS authrizatin frm which must be signed by the users authrizing release f 1099 infrmatin t the qualifying states. Fill ut the Transmittal Infrmatin sectin in the Transmittal mdule. Thse that are required are marked as such belw: Cmpany Name (REQUIRED): Enter the name f the prductin cmpany. Cmpany Mailing Address (REQUIRED): Enter Street 1 and Street 2 Address infrmatin fr the Transmitter. City (REQUIRED): Enter the City where the Transmitter is lcated. State (REQUIRED): Enter the State infrmatin fr the Transmitter. Zip Cde (REQUIRED): Enter the pstal cde infrmatin fr the Transmitter. Cntact Name (REQUIRED): Enter the name f the persn the IRS will cntact fr infrmatin pertaining t the IRS Transmittal File. Cntact Phne/Extensin (REQUIRED): Enter the cntact persn s phne number and extensin. Cntact s Address: Enter the cntact persn s address. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

16 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 16 f 19 Fill ut the Transmittal Infrmatin sectin in the Transmittal mdule. Thse that are required are marked as such belw: Payer Name (REQUIRED): Enter the name f the entity respnsible fr 1099 payments. This can be a prductin cmpany name r a Studi name. Cmpany Mailing Address (REQUIRED): Enter the mailing address assciated with the Payer Name. This field hlds bth Address 1 and Address 2 line infrmatin. City (REQUIRED): Enter the City infrmatin fr the Payer. State (REQUIRED): Enter the State infrmatin fr the Payer. Zip Cde (REQUIRED): Enter the pstal cde infrmatin fr the Payer. Cntact Phne/Extensin (REQUIRED): Enter a phne number and extensin fr the persn the IRS will cntact with questins cncerning 1099 infrmatin reprted n the Transmittal file. Payer s Name Cntrl: Enter the Payer s Name Cntrl cde the IRS has assigned. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

17 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 17 f 19 Sample Frm 1096 This frm is prvided fr infrmatinal purpses nly. Cpy A appears in red, similar t the fficial IRS frm. D nt file cpy A dwnladed frm this website. The fficial printed versin f this IRS frm is scan able, but the nline versin f it, printed frm this website, is nt. A penalty may be impsed fr filing frms that can t be scanned. See part O in the current General Instructins fr Certain Infrmatin Returns fr mre infrmatin abut penalties. T rder fficial IRS frms, call TAX-FORM ( ) EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

18 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 18 f 19 Independent Cntractr Reprt (ICR) ICR Overview Because the filing requirement is within 20 days, Entertainment Partners recmmends that yu anticipate submitting a filing every tw weeks. T file reprts/returns electrnically, yu must enrll t use EDD s e-services fr Business and establish a username and passwrd. Fr mre infrmatin, answers t questins, r frms, yu can call the Emplyment Develpment Department (EDD) Tax Payer Assistant Center at Visit the website at The ICR prgram reprts vendr payments as indicated in cmpany and tax setup recrds. The ICR prgram includes vendrs the first time that payments reach r exceed the amunt indicated in cmpany as the EDD Limit Amunt. The vendr is reprted nce per annum, per state requirements. Hw t Reprt t EDD Yu are encuraged t reprt nline using any f the ptins available with EDD s e-services fr Business. Visit the EDD website at t chse the ptin that is best fr yu. EDD Transmissin Prcess This prcess is t generate the EDD file and Print the ICR DE 542. T have any infrmatin appear n the EDD file, the Vendr must have a Default Cde f 07 and the Business Type shuld be Cde IND Sle Prprietr with SSN. EDD Transmissin Mdule On the Start menu, select Maintenance. On the Sub menu, select EDD Transmissin. The fllwing windw will appear. T view the EDD infrmatin that needs t be prcessed, click n the Search icn n the tp left hand crner. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017

19 SmartAccunting 1099-MISC & ICR Ntes: 2017 Page 19 f 19 Once the infrmatin is ppulated, the Print ICR (DE 542) and Generate ptin will be enabled. In the State Filter, yu have the ptin t view the EDD infrmatin by specific state. Yu will need t enter the EDD Accunt Number. If yu nt have this accunt number, yu will need t cntact the EDD ffice. T print the ICR DE 542, click n the icn n the ribbn. This reprt generates the DE 542 Reprt f Independent Cntractrs fr the State f Califrnia Emplyment Develpment Department. T create the EDD file, click n the Generate icn that is lcated n the ribbn. The system will prmpt a windw that will allw yu t save the INDCONTR (EDD File) t any lcatin n yur cmputer. The INDCONTR is the file that yu will need t uplad t the EDD website. EP Service and Supprt: r supprt@ep.cm Cpyright 2017 Entertainment Partners. All Rights Reserved. Updated Octber 2017