Configure your company for 1099 processing
Related information
Related topicsBefore processing, printing, or filing 1099 forms, review your company's 1099 settings. These settings control how 1099 forms are issued, how transactions are reported, and whether users can override default 1099 behavior.
Step 1: Determine how your company issues 1099s
For multi-entity companies, the Issue a separate 1099 per entity setting controls whether 1099 forms are generated for individual entities or for the company as a whole. Select this option if each entity files and reports 1099 information independently or must issue its own 1099 forms.
If each entity reports payments independently, enable your multi-entity company to Issue a separate 1099 per entity. If you issue separate 1099 forms per entity, assign entity contact information so it can appear on forms when required.
When this option is enabled:
Forms use the legal name, address, and tax ID of the reporting entity.
Vendors and employees associated with multiple entities can receive multiple 1099 forms.
Entity-level filing and reporting processes are supported.
You can configure Accounts Payable to generate 1099 information by the paying entity rather than the billing entity.
Go to Company > Admin > Subscriptions > Multi-entity management > Configure.
Select Issue a separate 1099 forms per entity.
Select Save.
If your multi-entity company issues separate 1099s per entity, determine whether 1099 amounts should be associated with the billing entity or the entity that made the payment.
By default, 1099 amounts are associated with the billing entity. If one entity regularly pays bills on behalf of another, you can generate 1099 information by the paying entity instead. When you select to Generate 1099 information by paying entity in Accounts Payable, Sage Intacct uses the entity associated with the bank account from which the payment was made.
Go to Accounts Payable > Setup > Configuration.
Find the 1099s section.
Select Generate separate 1099s by paying entity.
Select Save.
By default, the Issue a separate 1099 forms per entity option is cleared. Your multi-entity company behaves as a single company for 1099 reporting purposes.
When this option is cleared:
The top-level company prints one set of 1099 forms for all entities.
Forms use the name, address, and tax ID of the top-level company.
Payments across entities are consolidated for reporting.
If your company is enabled for this feature and you would like to turn it off:
Go to Company > Admin > Subscriptions > Multi-entity management > Configure.
Clear Issue a separate 1099 forms per entity.
Select Save.
Step 2: Configure transaction-level overrides
Transaction-level override options provide more flexibility than the default 1099 settings defined on vendor and employee records.
Enable 1099 flag override to allow users to determine whether individual transaction lines are included in 1099 processing. This feature only applies to vendors.
By default, transaction lines for a 1099 vendor are flagged for 1099 treatment. When this option is enabled, users can clear the 1099 designation on individual lines to exclude them from the 1099 form.
Go to Accounts Payable > Setup > Configuration.
Select Enable 1099 flag override.
Select Save.
Enable 1099 form and box override to allow users to change the 1099 form or reporting box assigned to individual transaction lines.
By default, transactions inherit the 1099 form and box defined on the vendor or employee record. When this option is enabled, users can override those defaults when entering transactions.
Use this option when payments for the same vendor or employee must be reported in different 1099 boxes.
For vendors, go to Accounts Payable > Setup > Configuration.
For employees, go to Expenses > Setup > Configuration.
Select Enable 1099 form and box override.
Select Save.
What's next?
After configuring your company's 1099 settings, learn how to Set up vendors and employees for 1099 processing.
