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December 2020 – Volume 24 Issue 4

December 2020 – Volume 24 Issue 4

The Internal Revenue Service requires that 1099 forms be issued to unincorporated vendors (such as independent contractors and landlords) who have provided purchased services or goods of $600 or more during the calendar year, and to attorneys for fees or amounts paid for gross proceeds of $600 or more.  Beginning with the 2020 tax year, use the 1099-NEC form to report nonemployee compensation of $600 or more to unincorporated vendors, and continue to use the 1099-MISC form to report payments for miscellaneous items, including rents, prizes and awards, medical and health care payments, and gross proceeds paid to an attorney.

Within the School Accounting System, both the 1099-NEC and 1099-MISC forms can be generated.  To designate a vendor as a 1099 vendor in order to issue a 1099-NEC or 1099-MISC form at the end of the calendar year, complete the following fields on the Miscellaneous tab in the Vendor File:

  • Federal ID Type field
  • Federal ID field
  • Federal Form Type field
  • Federal Form Box ID field
  • Additional Recipient Name field (and Print Location field), if needed
  • Accumulate 1099 Amount field

Then during the end of calendar year process, the 1099-MISC and 1099-NEC forms can be generated and printed, and a 1099 file can be created to submit to the Internal Revenue Service if filing electronically.  For detailed instructions on generating and printing the 1099-MISC and 1099-NEC forms in the School Accounting System, click here to request the Accounts Payable End of Calendar Year Checklist Webinar recording.