In Advantage Financial, 1042-S reporting includes defining reportability for Vendors, Objects, Sub Objects, Balance Sheet Accounts, and Sub Balance Sheet Accounts. It also includes the collection of information for events that are subject to 1042-S reporting, and reporting the income to the Internal Revenue Service (IRS).
The following are setup pages necessary for 1042-S reporting.
Page Name |
Page Code |
Description |
ITAX |
This page stores valid tax rates from the Internal Revenue Service (IRS) required for 1042-S reporting. The Tax Rate values specified on this table are used by other 1042-S reference tables and updates Box 3b or Box 4b on the 1042-S Form. The Chapter 3 and/or Chapter 4 flag(s) must be checked to save a record on ITAX. |
|
ICTRY |
This page stores country codes in the required IRS format that is used as input to the 1099 Batch process. In addition, the this table allows a site to specify if that country has a treat with the United States allowing an exemption or reduced tax rates for 1042-S reporting. This table comes pre-loaded with valid IRS Country Codes. |
|
EXMP |
This page provides the classifications for the types of income exempted from the tax base when processing 1042-S forms. The values on this table are used to populate Box 3a or Box 4a on the 1042-S Form. This table includes valid IRS Exemption codes. |
|
RECP |
This page provides the IRS classification for the 1042-S Ch. 3 Recipient Code for the recipient being paid. Values on this table are used by other 1042-S reference tables and used to populate Ch. 3 status code boxes on the 1042-S Form. It is also used to identify the Ch. 3 status code for the Reporting Payer on the 1099RP table. |
|
CHP4 |
This page provides the IRS classification for the 1042-S Ch. 4 Status Code of the recipient being paid. Values on this table are used by other 1042-S reference tables and used to populate Ch. 4 status code boxes on the 1042-S Form. It is also used to identify the Ch. 4 status code for the Reporting Payer on the 1099RP table. |
|
INCM |
This page provides the classification of the type of income paid by a taxpayer. Values on this table are used by other 1042-S reference tables and used to populate Box 1 on the 1042-S Form. This table includes valid IRS Income codes and their associated withholding allowance setting. |
|
1042I |
This page stores the name and mailing address information for foreign vendors who are subject to Form 1042-S reporting. A record is entered on this table for any individual or company that is eligible for 1042-S reporting by the Offline 1099 Process. Note: The 1099I table remains as the primary reference table for Taxpayer Identification Number information. Records are added to 1042I in addition to the TIN/TIN Type also being present on the 1099 Reporting Information table. While the 1099 Reporting Information table contains mailing information that is used on 1099 forms, the 1042I table contains mailing address information that is used by the Offline 1099 Process to populate the mailing address on the 1042-S forms. The mailing information on the 1042I page is not inferred from the 1099I page. The user is required to enter the mailing address for 1042-S reporting separately on 1042I. This is because the IRS strongly recommends that 1042-S forms be sent to the vendor's foreign address (home country) and not their US address, which is the address that is stored on 1099I. |
|
ICTX |
This page defines Ch. 3 withholding tax rates including exemptions (i.e. tax rate is 00.00) per the 1042-S Income Code for countries with which the US has entered into an income tax treaty. Two factors determine population of this table. The first factor is the IRS data in IRS Publication 515. Second, only countries with Treaty Indicator set to “true” on the IRS Country Code table may be defined on this table. |
|
ICTX4 |
This page defines Ch. 4 withholding tax rates including exemptions (that is, tax rate is 00.00) per the 1042-S Income Code for countries with which the US has entered into an income tax treaty. Two factors determine population of this table. The first factor is the IRS data in IRS Publication 515. Second, only countries with Treaty Indicator set to “true” on the IRS Country Code table may be defined on this table. |
|
1042T |
This page identifies valid combinations of 1042-S Income Code, 1042-S Ch. 3 Recipient Code, 1042-S Ch. 4 Status Code, and 1042-S Type of Income used in the 1042-S reporting process. BWH Applicable and/or a Threshold amounts can be indicated for each valid combination. Combination validations may be enforced if defined on 1042-S Income Code/Ch. 3 Recipient Code Exception table (ICRC) or 1042-S Income Code/Ch. 4 Status Code Exception table (IC4RC). |
|
OTRC |
This page stores valid Organization Types and 1042-S Ch. 3 Recipient Code combinations and is used to help ensure that only valid Organization Type and 1042-S Ch. 3 Recipient Code combinations are selected on the Vendor Customer (VCUST) table and the VCC and VCM transactions. |
|
OT4C |
This page stores valid Organization Types and 1042-S Ch. 4 Status Code combinations and is used to help ensure that only valid Organization Type and 1042-S Ch. 4 Status Code combinations are selected on the Vendor Customer (VCUST) table and the VCC and VCM transactions. |
|
ICRC |
This page identifies 1042-S Income Codes that can only be associated with certain 1042-S Ch. 3 Recipient Codes on the 1042-S Type of Income table (1042T). When a record is saved on 1042T and the 1042-S Ch. 3 Recipient Code is populated, the system will look for a matching Income Code value on ICRC and, if a matching Income Code record is found, determine if the Income Code/Recipient Code combination specified on 1042T exists on ICRC. If it does not, an error will be issued that the specified Income Code/Recipient code combination is invalid. Income Codes that are not defined on ICRC may be used with any valid 1042-S Ch. 3 Recipient Codes on 1042T. |
|
IC4SC |
This page identifies 1042-S Income Codes that can only be associated with certain 1042-S Ch. 4 Status Codes on the 1042-S Type of Income table (1042T). When a record is saved on 1042T and the 1042-S Ch. 4 Status Code is populated, the system will look for a matching Income Code value on IC4SC and, if a matching Income Code record is found, determine if the Income Code/Status Code combination specified on 1042T exists on IC4SC. If it does not, an error will be issued that the specified Income Code/Status code combination is invalid. Income Codes that are not defined on IC4SC may be used with any valid 1042-S Ch. 4 Status Codes on 1042T. |
|
1042W |
This page stores eligible withholding allowance amounts by Calendar Year for a specific IRS Recipient Account Number, 1042-S Income Code, 1042-S Ch. 3 Recipient Code and IRS Country of Residence combination. |
|
1042W4 |
This page stores eligible withholding allowance amounts by Calendar Year for a specific Vendor Code, 1042-S Income Code, 1042-S Ch. 4 Status Code and IRS Country of Residence combination. |
|
LOB |
This page defines the Limitation of Benefits categories under which a beneficial owner qualifies for a reduced rate of withholding under an income tax treaty. The primary keys to this table are Calendar Year and 1042-S Limitation of Benefits Code. This table is populated as part of day zero data, based on values provided by the Internal Revenue Service (IRS). LOB Codes are loaded for each tax year, starting with 2017. Refer to Instructions for Form 1042-S for details on the LOB codes. |