Before you post vendor transactions, set up 1099 information for each vendor who receives a 1099 statement.

Note Note

We recommend that you review IRS rule changes for the applicable tax year before you set up and process 1099 statements.

To set up vendors for 1099 reporting:

  1. Click > .

  2. Select a vendor, and then select the tab.

  3. Select the check box to include transaction and 1099 information for the vendor on the 1099 report. If this check box is not selected, 1099 information for the vendor is not included on the 1099 report, and the electronic or magnetic files do not include amounts for the vendor.

  4. In the field, enter the tax identification number for the vendor, and in the field, select the type of tax ID that you used in the field.

  5. In the field, enter the default value that appears on each transaction line created for the vendor. You must do this to include transactions for the vendor on the 1099 report and in electronic or magnetic media files.

  6. Select the checkbox if the company is owned by an entity outside of the United States.

  7. Select the check box if your company has been notified twice in three calendar years that the vendor provided an incorrect name.

  8. In the field, select the vendor name. You can enter a doing-business-as (DBA) name if one is available.

  9. In the field, enter the name control to print on the mailing label.

  10. Click the button, and select .

  11. Create a new record for each state in which the vendor receives payments from your company. Enter the , and if tax identification information is available, select the .

  12. If local income tax was withheld during the year, select the checkbox.