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

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 Accounts payable> Vendors.

2. Select a vendor, and then select the Tax 1099tab.

3. Select the Report 1099check 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 Federal Tax IDfield, enter the tax identification number for the vendor, and in the Tax ID typefield, select the type of tax ID that you used in the Federal Tax IDfield.

5. In the 1099 boxfield, 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 Foreign entity indicatorcheckbox if the company is owned by an entity outside of the United States.

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

8. In the Name to use on the 1099field, select the vendor name. You can enter a doing-business-as (DBA) name if one is available.

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

10. Click the Setupbutton, and select Vendor state tax IDs.

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

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