The IRS requires US companies to withhold a specific percentage of money paid to foreign individuals, companies, and non-resident aliens based on their country of origin and the type of income classification of the money being paid to that company or individual. Form 1042-S is the tax form used to report such income.
In Advantage Financial, 1042-S transaction data is captured in 1099 Reporting Journal throughout the calendar year. A transaction is considered reportable for 1042-S reporting if the following are true:
The vendor is established as a 1042-S vendor as specified on the Vendor/Customer (VCUST) table based on the 1042-S Reportable flag on the 1042I table and
The Object, Sub Object, Balance Sheet Account or Sub Balance Sheet Account is associated with a 1042-S Income Code (on INCM) and a Type of Income.
Depending on the application's setup, records can be added to the 1042-S Reporting Information (1042I) table by submitting a Vendor/Customer Creation (VCC) transaction. Records can be modified on this table by submitting a Vendor/Customer Modification (VCM) transaction. In addition, for users with the appropriate security, records may be added or modified directly on the 1042I table.