1099 Report

Premium Feature: This is a premium feature and may not be available on all plans. To access this feature, please upgrade to a supporting plan.

About the 1099 Report

The IRS requires businesses to file information returns to qualified companies and individuals by reporting the money you have paid them for qualifying events during a calendar year (January through December) using IRS Forms 1099 and 1096. 1099s are issued to the company and individual directly and a copy of each is sent along with Form 1096 which totals the amounts paid to all qualifying companies and individuals. The IRS uses these information returns to cross-check the payments you made to the companies/individuals with the income they reported.

Typically, 1099s are issued for payments made to independent contractors - non-employees you paid for services - for $600.00 or more in a given year but can include money you paid in royalties, rents or gross proceeds paid to attorneys and much more. There are also plenty of exceptions, including corporations in general (with some stipulations) and payments made for inventory.

The WorkingPoint 1099 report helps you prepare for filing your 1099s and 1096 by showing you all of the payments you have made to contacts you have selected to be tracked for a 1099. It includes the name of the contact and how much you have paid to them during a calendar year so you can decide who you need to send a 1099 to. We have also excluded any payments made for inventory items for you.

For specific information on who should get an IRS Form 1099 and how to complete and distribute the forms, visit the IRS website.

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Creating a 1099 report

To create a 1099 report:

  1. Click the Reports tab.

  2. Under Tax Reports, click 1099 Report.

The current year's report will display automatically.

When you see the report on the screen, you can:

  • Click the arrows beside the year to move to a past or future year.
  • Click the [+] icon to expand a particular contact's payment details.
  • Click the [-] icon to collapse a particular contact's payment details.
  • Click the header icons to expand or collapse all contact's payment details.

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Reading the 1099 report


The WorkingPoint 1099 report shows you all of the payments you have made to contacts you have selected to be tracked for an IRS Form 1099. You'll see the name of the contact and the total amount paid to each for the current year and the total paid to all of them.

The following types of payments are included in the 1099 report:

  • Bill payments
  • Expenses recorded from the Home page
  • Payments or Purchases recorded from Bank Accounts
  • Credit card charges recorded from Credit Card Accounts

Click the [+] icon to expand a contact's payment details. Depending on the type of payment made to your contact, the details for payments may look different. Here is a quick overview of what you will see when you expand a contact's details on the 1099 report:

Type of Payment

What You'll See in the Account Column

What You'll See in the Notes Column

Bill Payment for the Exact Amount of the Bill

The bookkeeping accounts selected on the bill.

If you entered a note for any line items, you'll see those here.

Bill Payment for More Than the Amount of the Bill

The term "Overpayment" along with a link to view the bill.

If you've entered a transaction memo, you'll see it here.

Bill Payment for Less than the Amount of the Bill

The term "Partial Payment" along with a link to view the bill.

If you've entered a transaction memo, you'll see it here.

Expenses

Payments or purchases from bank accounts

Credit card purchases recorded on credit card accounts

The bookkeeping accounts selected.

If you have entered a note for any line items or a transaction memo, you'll see those here.

 

Note: While you can connect companies and people to track the relationship between people and the companies they work for or own, they are considered separate contacts in WorkingPoint. As a result, if you have paid money directly to a person at a company and to the company directly, you will see separate totals for each on the 1099 report. To include the payments for the company and all the associated people on a single 1099, simply add them together.

 

Inventory purchases have been excluded from the report according to IRS exceptions.


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Selecting a contact to be tracked for 1099 reporting

WorkingPoint displays contacts on the 1099 report that you have selected to be tracked for a 1099 .

To select a contact to be tracked for 1099 reporting:

  1. Click the Contacts tab to open the Contacts List.
  2. Move the pointer to the left of the contact you want to edit. You’ll see this: 
  3. Click Edit.
  4. Check the "Include payments made to this [company or person] on 1099 Reports" check box.
  5. Click Save.


Note:  When you check the "Include payments made to this company on 1099 Reports" checkbox for a company, all associated people will automatically be tracked for 1099 reporting as well.

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