BankTEL ASCEND 1099 Overview
1099 MISC INFO
Always review information related to 1099s from the IRS. 1099 Miscellaneous Instructions and Form Samples can be located using the link below.
IRS 1099 Information Page with Form & Instruction Links
Questions Concerning 1099?
W-9 Request Option It is important to request/receive a W-9 from a vendor to ensure reporting to the IRS is accurate. To utilize the W-9 Request Option in Ascend make sure a valid email address is keyed into the Email Address field under the Misc tab located on your Vendor Details Page. **This request option is not a necessary step, but will allow a user to receive accurate information from the vendor
Sending a W-9 Request
Once an email address is in place, use the Email W9 Request option on the bottom right hand corner of the Vendor Details page to send an email notification to your vendor. The vendor will then need to complete and return.
Example of an Email W-9 Request
Changes to the email request form a vendor receives can be made under the System Setup Menu using the Email Templates option. It is important to review the email template before sending out an email request in order to add specific information your institution would want to relay to the vendor.
Vendor Setup for 1099 Tracking Before paying the vendor for the first time, the vendor profile should be setup to track 1099 information automatically. The two options under the Vendor Details Screen that will need to be reviewed/edited are Name/Address and 1099 Setup. To begin editing, select Edit in the bottom right hand corner of the Vendor Details Screen, which allow a user to edit vendor information.
Vendor Details- Name/Address On the Name/Address tab, the IRS Name/Address area will be visible. If the Remit name is the same as the IRS Name requested by the vendor (see W9 provided by vendor), use the Same as Remit To Name/Address copy feature to populate the IRS fields. If a vendor requests a different name or address then populate the IRS Name/Address fields with provided information from the vendor.
**Only the information located in the IRS Name/Address field will be printed on the 1099. Keep in mind that missing data in this area will mean missing address data on the 1099 form.
Vendor Details Screen-1099 Setup The 1099 Setup allows for the Tax ID information to be input and for the user to select the 1099 Category that will be tracked on the vendor’s invoices. The Tax ID # Type field will need to be selected based on the information the vendor supplied on the W-9, as well as, the Tax ID number. The Verified box allows the AP user to notate whether the information was verified from the vendor which can be used in reports as an indicator when a vendor needs to be contacted for current W-9 Information. *Mark the Verified box when a vendor has supplied a W-9 TAX ID TYPES
1099 Settings
The 1099 Misc Box will allow the user to indicate the 1099 Category to be tracked for the vendor. To change the category, choose the selection button and choose the 1099 category desired for the vendor. Multiple categories can be used for tracking and will be discussed under the invoice entry section.
1099 Settings – IRS Name Control 1. 2.
3.
The IRS Name Control is a required field by the IRS and is used in the electronic file that is sent to the IRS for Vendor Reporting. For an individual name, the name control will be the first four letters of the vendors last name. For example, John Q. Public, the name control assigned would be PUBL. If the last name has fewer than four characters, the name control is the last name. For example, Jane Doe would have a name control of DOE. For a business name, the name control is assigned from the first four characters of the business name. • There are some special rules for name controls: • The ampersand (&) and hyphen (-) are the only special characters allowed in the name control. • The name control can have fewer, but no more than four characters. • Spaces or blanks are not part of a name control. For example, the name control for Joe Doe Trucking is JOED. • The word “The” at the beginning of your business name is not used in your name control. • Blanks may be present only at the end of the name control. • Do not include "dba" as part of the name control.
Invoice Entry – 1099 Classification Allocations
When the 1099 Classification is setup at vendor level, the invoice entry screen Option area will auto populate with the default category. The allocation amount will be the amount recorded for the 1099 category displayed (the amount due will not be used). If a change or multiple categories need to be selected for the specific invoice, it can be done by clicking on the original designation located under the Options column and the user can select a new category. Once the invoice is paid the allocation total will be updated to the specified 1099 category.
Invoice Entry – 1099 Classification on Allocation
Vendor Purchase 1099 Adjustments
If a vendor is not correctly setup with a 1099 category before the first payment of the year or if a 1099 category was not selected or incorrectly selected during invoice entry and a payment has been produced, changes will need to be made to a vendor’s 1099 totals on the Vendor Maintenance Screen under the Vendor Purchases section. (This step can also be completed under the 1099 Menu). Select the year to adjust and then Edit to access the 1099 Totals.
Vendor 1099 YTD Total Adjustment
Once a Purchases Edit screen is open, changes to 1099 categories can be made. Whether adjustments need to be made to a current total on screen or to a category with a 0.00 value, once changed and saved, new invoices flagged with 1099 categories will be add to existing totals. It may be necessary to review all history for the year to correctly identify the 1099 totals. Adding or adjusting a vendor’s 1099 category under Vendor Maintenance will not retroactively adjust 1099 yearly totals.
1099 Form Printing
No preprinted forms need to be order for 1099s in Ascend. The 1099 Recipient forms will be created in a PDF format and can be printed from Adobe. Begin by selecting the desired year to open a list of vendors who are available to have 1099s printed for that year.
1099 Form Printing – Corrections to 1099 Info
Use the Select All feature to mark all vendors or individually select vendors for printing. Once vendors are selected, use the Report feature to review information in a PDF report. To view vendor totals and categories individually, select the Year link to review/edit 1099 information or select the Vendor Name link to adjust/review the IRS Name/Address if something needs to be changed before printing if that has not already been done
1099 Printing - Error Correction
If an error is present, click the ERROR link to identify the problem that exists. A correction will need to be made to the vendor by selecting the vendor name link under the Vendor column heading.
1099 Form It is very important to verify the information for both the Payer and the Recipient on the 1099 form before mailing. If Payer information needs to be adjusted, such as Payer Name, Address, Tax ID Number or Phone number, those changes will need to be made using the System Setup Option, under Company (this is normally something that will need to be done by a user with Admin permission). Only the Recipient copy or Copy B is created in the Ascend application, so all filings to the IRS will need to be done electronically using the IRS FIRE System. **The exception to this will be those users who will be transmitting their 1099 file to their core system, so their core can print and file the 1099s with IRS for them. Not all users will have this option.
IRS File Setup for Electronic Filing with the IRS
If an electronic file is going to be upload to the IRS, the Company Option will need to be reviewed for accuracy. The Transmitter information located under the IRS File Setup is the Bank’s information, as well as, a bank contact’s information. TCC (Transmitter Control Code) is a number the IRS will have to issue the bank after filing the appropriate form with the IRS (Form 4419). Please consult the IRS links in the next slide for more information on FIRE.
IRS Fire (Filing Information Returns Electronically) IRS Due Date 1099-MISC (box 7) As a result of the PATH Act in 2016 the deadline for some information returns changed. Employers and small businesses must file certain information returns by January 31: Forms 1099-MISC, box 7 (for non-employee compensation) are due to IRS by January 31.
Useful Links for the IRS
FIRE-Filing Information Returns Electronically Requirements for filing with FIRE IRS FIRE Form 4419 Helpful Information on FIRE
**Banktel creates a combination file of all categories, so plan on having your file uploaded to the IRS by January 31st.
Other Info – Core System 1099 Upload Files
Some core systems allow users to upload files directly to them for printing and filing 1099s with the IRS. To ensure core deadlines are not missed, please verify with your core providers what the deadline will be for your institution. These are not set by BankTEL and vary from core to core.
If you have further questions Contact BankTEL Support
662•245•1007 Or support@banktel.com
1099 Overview • How can ASCEND’s W9 request feature Gathering accurate Vendor information?
Elements of Engagement
• What three components are importing in for proper 1099 Vendor configuration? • What are the 1099 data elements for which ASCEND provides error checking? • How does ASCEND provide flexibility at the invoice level to correctly notate the 1099 applicable amount in a given invoice? • What reporting tools does ASCEND offer for verification of 1099 amounts? • What are three primary must haves in relation to IRS FIRE filing? • Does ASCEND offer a 1099MISC upload to your core provider?