Back to your weekly scheduled program: a dose of webinar excitement… all about 1099s! The following is a step-by-step overview of those year-end close activities with Vendor and Owner 1099 reporting,and shared insights and custom-built program tools that make processing year-end reports as easy as pie!
Want to ensure an accurate, complete Vendor 1099? Make sure vendor and property information is complete and accurate in Rent Manager. To double-check your info, go to:
- Lists > Vendors, and confirm that the following fields are populated and correct:Name; Check Payee; Vendor Address; 1099 SocSec # / Tax #; 1099 Vendor box (This box must be checked to ensure accurate reporting)
- Rental Info > Properties , and confirm that the following fields are populated and correct:Property Name; Property Address; Property Tax ID
Tracking 1099 Expenses in Rent Manager
Next up, we learned about tracking 1099 expenses in Rent Manager. If all of your contractors/suppliers/ etc. have been set up as 1099 vendors in the system (we told you that the 1099 Vendor box is important!), then their 1099 payments (the checks you write them with the 1099 column checked) will be added automatically to the year-end expense tally for 2014. If the payee hasn’t been identified as a 1099 vendor,a 1099 will not be created for them.
We also became acquainted with two super-handy features that can save you a lot of time and trouble during tax season:
- The YTD Balances Tool This feature allows authorized users to add unrecorded 1099 expenses to your properties in one simple step.The YTD Balances button lives on the Tax Information display, which is found on the General tab of the Vendors form.
- The 1099 Adjustment Tool This feature allows authorized users to update the tax status for checks written during a specified timeframe. To access, go to File > Administration > 1099 Adjustment Tool.
It’s Time for the Breakdown
Before taking the plunge and printing the actual tax docs, check out the 1099 Vendor Breakdown report to make sure everything looks A-OK. To run this must-have statement, go to Reports > Accounts Payable > 1099 Vendor Breakdown.
Choose the appropriate 1099 Exclusion option for your business. Complete the remainder of the Vendor Breakdown form, and then click the Create Report button.
Printing Your Vendor 1099s
Once you’ve examined your Breakdown and are certain your numbers are correct, it’s all-systems-go for 1099 generation! Are you ready? It all starts at Reports > Accounts Payable > Vendor 1099.
From here, you’ll select the report options you want for your Vendor 1099s, click Create Report, and then print your shiny-new 1099s (onto the 1099 IRS tax forms you preloaded into your printer). Easy peasy!
The finale to your vendor tax reporting is the 1096 form (essentially the cover letter for your 1099s). To generate 1096 forms: Reports > Accounts Payable > Vendor 1096. Next, choose the report options you used to create the Vendor 1099s, click Create Report, and print the 1096s (onto the 1096 IRS tax forms you preloaded into your printer). Still easy, right?
Next, we moved on to Owner 1099s. It’s important to note that the Rents Received box on the 1099 form actually shows the total gross income (on a cash basis) received by the owner’s properties over the course of the year. Expenses, management fees, pass-through, etc. are not subtracted from this sum, which is why the total is such a large number.
Just like the vendors, make sure your owner information is complete and accurate. Go to Owners, and make sure the following fields are populated and correct:Name; Check Payee; Owner Address. Also check the Properties data associated with your Owners to make sure it is correct.
Next, break it down, run your 1099 Owner Breakdown report by going to Reports > Owners > Owner 1099 Breakdown. Complete the remainder of the 1099 Owner Breakdown form, and click the Create Report button.
Having deja vu at this point? Double-check your numbers on the Owner Breakdown, then you’re ready to rock the 1099 generation. Go to Reports > Owners > Owner 1099. If everything looks good, load up the forms and get to printing.
Wrap it up by generating the Owner 1096 forms. Go to Reports > Owners > Owner 1096, choose the report options used to create the Owner 1099s, click Create Report, and print your 1096s (onto the appropriate forms). And that’s it Fort Pitt!
(Hint: If you want to eFile your 1099s, go to Import/Export > Export 1099 Report, and fill out the form.)
So, that’s the webinar in a nutshell. For the complete lowdown on processing 1099s in Rent Manager, catch the entire lesson at RentManager.com>Services>Training Videos.
And if you haven’t already, get with the program! Participate in our weekly webinars and make Rent Manager®work harder for you!