You use this program to generate 1099 labels.
Although they are called labels, they are actually documents that are used in the USA to report miscellaneous income to the Internal Revenue Service.
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Each time you pay a supplier for goods or services, the payment value is accumulated. At the end of the year you generate a 1099 label indicating the total payments you made to the supplier. This total is sent to the Receiver of Revenue. The supplier has to submit some form of documentation to the Receiver of Revenue indicating how much money he was paid. In this way the Receiver of Revenue can tally the 1099 label with the documentation submitted by the supplier to determine whether the supplier is declaring all the money he was paid.
| Field | Description |
|---|---|
| Label sequence |
Indicate the sequence in which you want to print the 1099 labels. The available sequences are:
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| Supplier format selection |
Indicate the AP 1099 Label Format number(s) that you want to use to generate the labels. These formats are stored in the A/P Supplier 1099 Format file. When adding a new supplier you must define the A/P 1099 Label Format number if you want to print 1099 labels for the supplier (Supplier Maintenance). |
| Minimum YTD payment | This is displayed for reference purposes. |
| Supplier selection | Indicate the supplier(s) for whom you want to generate the labels. |
| Labels to print | |
| Labels per supplier |
Indicate the number of labels to generate for each supplier. This defaults to the Number of labels per supplier entered in the Preferences section of the AP 1099 Label Format program, but can be changed. Up to 9999 labels can be printed for each supplier. |
| 1099 tax year |
Accumulated gross payments can also be printed for the current or previous year. Previous year amounts are generated when you select the Set 1099 accumulated gross payments to zero option in the AP Period End program. |
| Current | Select this to generate 1099 labels for the current year. |
| Previous | Select this to generate 1099 labels for the previous year. |
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Select this to generate the labels according to your selections. |
The following selection criteria can be indicated:
| Selection | Description |
|---|---|
| Supplier class selection | Indicate the supplier class(es) for which you want to generate the labels. |
| Bank selection | Indicate the supplier bank(s) for which you want to generate the labels. |
| Branch selection | Indicate the supplier branch(es) for which you want to generate the labels. |
| Geographic area selection | Indicate the supplier geographic area(s) for which you want to generate the labels. |
| Currency selection | Indicate the supplier currency(ies) for which you want to generate the labels. |
These options enable you to apply a theme to the report and to define multiple output destinations for the report once it has been compiled (SRS Output Options).
A 1099 Label is only generated if the supplier meets the following conditions:
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1099 labels are required for the supplier.
The check box 1099 label required must be selected for the supplier (Supplier Maintenance).
- The Format defined against the supplier (Supplier Maintenance) must be the same as the format selected when you run the SRS 1099 Label Print program.
The program does a check on the Minimum YTD payment values, using the following logic:
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If, against the supplier (Supplier Maintenance), you did not tick the option Override minimum YTD payment, then the SRS 1099 Label Print program compares the Accumulated 1099 payments field for the selected year to the Min YTD payment value defined against the format.
If the value is greater than or equal to the format value, then a 1099 Label is printed for the supplier.
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If, against the supplier (Supplier Maintenance), you ticked the option Override minimum YTD payment option and entered a Min YTD payment value, then the AP 1099 Label Print program compares the Accumulated 1099 payments field for the selected year to the Min YTD payment value defined against the supplier.
If the value is greater than or equal to the format value, then a 1099 Label is generated for the supplier.