In Advantage Financial, the 1099 Reporting Process includes defining reportability for Vendors, Objects, Sub Objects, and Balance Sheet Accounts. 1099 Reporting also includes the collection of information for events that are subject to 1099 reporting, and reporting the 1099 income to the Internal Revenue Service (IRS).
The following are key tables and pages that are used to setup 1099 Reporting and are discussed later in this guide:
1099 Reporting Information (1099I) table - stores taxpayer information, such as TIN and TIN Type, to support 1099 Processing. Taxpayer information is then linked to individual vendors.
1099 Processing Options and Control (1099P) table - accepts user parameters, and is used as input to drive 1099 Processing.
1099 Reporting Payer Information (1099RP) table - allows for multiple payees in one calendar year.
1099 Type of Income (TINC) table - defines types of vendor income, and associates it with a specific box on the 1099 form. Also establishes income thresholds for use in 1099 Processing.
1099 Reporting Classification (1099CL) table - establishes valid 1099 Reporting Classification codes in relation to TINC type of classification.
Valid Vendor Organization and 1099 Reporting Classification (VORGCL) table - establishes the valid combinations of Organization Type, Organization Classification, TIN Type, and 1099 Reporting Classification.