Year-End Close: Correcting 1099 Vendor Breakdown Errors

The end of the year is right around the corner and the Rent Manager ®support team wants you to have access to the information, tips, and tricks that will make your year-end close straightforward and problem-free.

Once you have generated your 1099 Vendor Breakdown report and identified errors, follow these steps to correct all mistakes:

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.

For complete instructions on how to process year-end tax documents and reports in Rent Manager, refer to the Knowledgebase and our End-of-Year Webinar Rewind.