Know the Knowledgebase: Calculating Vendor 1099s

Knowledgebase is a database of Rent Manager® FAQs, work-arounds, and tested solutions assembled by our Support Specialists and Instructional Resources staff. This expansive, instructive resource provides all sorts of valuable information about your Rent Manager property management software.

 

The following Knowledgebase article addresses how vendor 1099s are calculated and how you can verify the amounts.

At the end of the year, 1099 vendors who have been paid for services throughout the year should have a vendor 1099 issued for tax purposes. The vendor 1099 includes all checks dated in the tax year which have the 1099 box selected in the check’s expense grid. Before 1099s are generated, it is a good idea to verify the 1099 amounts. Follow the instructions below to verify and if necessary, correct vendor 1099 amounts.

RESOLUTION

NOTE: Owner 1099s are generated separately from vendor 1099s. For more information on owner 1099s, see Knowledgebase article 228723.

Verify that vendors are appropriately marked as 1099 vendors and correct errors:

1. Go to Lists > Vendors.

2. Select Filter from the upper left-hand corner of the Vendor form.

3. Select No from the Is 1099 drop-down list and click OK.

The filtered vendor list now includes vendors not marked as 1099 Vendors and who will not receive a 1099.

4. Correct vendors incorrectly appearing as non-1099 vendors:

a) Select the vendor’s name in the list.

b) Enable (check) 1099 Vendor.

c) Click Save.

5. Repeat Step 4 for additional vendors.

6. Click Filter again.

7. Select Yes from the Is 1099 drop-down list.

8. If it is not already selected, select Replace from the options on the bottom of the form.

9. Click OK.

The filtered vendor list now includes 1099 vendors who will receive a 1099 (if they meet the minimum payment amount).

10. Correct vendors incorrectly appearing as 1099 vendors:

a) Select the vendor’s name in the list.

b) Disable (uncheck) 1099 Vendor.

c) Click Save.

11. Repeat Step 10for additional vendors.

With vendors accurately categorized according to their 1099 status, 1099 amounts can be verified.

Verify 1099 amounts:

Populate the 1099 Vendor Breakdown report with the following report options to identify inaccurate amounts.

1. Go to Reports > Accounts Payable > 1099 Vendor Breakdown.

2. Select the date range From the first day of the tax year To the last day of the tax year.

3. Enable (check) Include Inactive and click Select All for the Properties to Include option.

4. Select Summary for the Detail or Summary option.

5. Disable (uncheck) Exclude records with zero amounts.

6. Disable (uncheck) Show Non-1099 Vendors.

7. Select No 1099 exclusions for the 1099 Exclusions option.

8. Click Create Report.

The report will display 1099 vendors and the following relevant information. Errors can be corrected by following the instructions in the next section of this article:

Tax ID: Entered on the vendor’s account.

YTD 1099: Amounts entered as payments made to the vendor prior to using Rent Manager (often these are payments made from your previous software).

1099 Amount: Checks written within Rent Manager with the 1099 box enabled (checked) on the check. This amount will be included in the vendor’s 1099.

Non-1099 Amount: Checks written within Rent Manager with the 1099 box disabled (unchecked) on the check. This amount will not be included in the vendor’s 1099.

Total 1099: The amount that will display on the Vendor’s 1099.

Correct errors found on the 1099 Vendor Breakdown report:

Tax ID errors: If a vendor displays on the report without or with an incorrect Tax ID, correct the issue:

1. Go to Lists > Vendors.

2. Select the vendor in the list.

3. In the Tax Information section, enter the vendor’s 1099 Soc Sec # / Tax #.

4. Click Save.

5. Repeat Steps 2-4 for any additional vendors.

YTD 1099 errors: If a vendor’s payments made in the previous software are not displaying accurately, correct the issue:

1. Go to Lists > Vendors.

2. Select the vendor in the list.

3. In the Tax Information section, click YTD Balances.

4. Select the appropriate tax year in the 1099 Year drop-down list.

5. For each property, enter the correct amount paid to the vendor from the previous software.

6. Click Save.

7. Repeat Steps 2-6 for any additional vendors.

1099 Amount and Non-1099 Amount errors: If the amounts paid to the vendor in either of these columns are incorrect, correct the issue:

1. Go to File > Administration > 1099 Adjustment Tool.

2. Select 1099 Vendors Only in the lower left-hand corner.

3. If necessary, update the Check List Date Range to include the first day of the tax year to the last day of the tax year.

4. Enable (check) 1099 = True and 1099 = False.

5. Select the vendor in the list.

6. The Checks section will include checks written to the vendor within the tax year and will display the check number, amount and check comment.

If the 1099 box is not checked, this amount will be excluded from the vendor’s 1099. (This is often appropriate for situations such as reimbursements made to the vendor where the amount is not taxable).

If the 1099 box is checked, this amount will be included in the vendor’s 1099.

7. To update all of the checks in the list as either 1099 payments or non-1099 payments, click Select All, then Save and confirm any pop-up messages that may appear.

8. To correct an individual check, either check or uncheck the 1099 box as appropriate, click Save and confirm any pop-up messages that may appear.

NOTE: Only the first vendor updated will trigger an automatic backup.

9. If desired, double click the check’s row to open and view the check.

You can then verify all of the changes made by running the 1099 Vendor Breakdown report again.

REQUIREMENTS / PERMISSIONS

Go to File > Administration > Manage Users:

1. Properties group: Enable (check) the appropriate Properties

2. Payables group: View and Edit Vendors

Also needed to run the 1099 Vendor Breakdown report:

3. Letters / Reports group: Run Reports Enabled

4. Reports tab: Accounts Payable group: Enable (check) 1099 Vendor Breakdown

Also needed to correct 1099 and non-1099 amounts with the 1099 Adjustment Tool:

5. Bank / CC Accounts group: Enable (check) the appropriate Bank

6. Payables group: Use 1099 Adjustment Tool Enabled

Also needed to view checks from the 1099 Adjustment Tool:

1. Banks / Checks group: View Checks

This article can also be viewed within the Knowledgebase.