We are introducing the ability to print 1099s directly from within Centerbase. Please refer to the IRS.gov website for rules regarding whether you are required to e-file your 1099s.
What does the new functionality include?
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User Interface (UI) updates to the Vendor Center so that you can quickly see which vendors are 1099 vendors, and how much you have paid them in the current year or the prior year
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Reporting updates to add payment thresholds to the 1099-MISC and 1099-NEC Reports and updated the calculations to ensure that refunded amounts have been removed from the calculation.
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The ability to print 1099 forms both to pre-printed forms and to blank and/or perforated paper.
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The ability to print to the pre-printed 1096 reporting form for both 1099-NEC and 1099-MISC.
Set-Up
System Settings
This document will cover the set-up and use of the new functionality. First, navigate to System Settings > Accounting > General > 1099 Settings and enter your firm’s Federal Tax ID/Employer Identification Number (EIN). If you are required to report on state income, fill out the Payer’s State ID and State.
Vendor Settings
First, set up the Vendor 1099 Accounting settings in Vendor > Cog > Accounting > Vendor Tax Information.
Centerbase currently only supports the 1099-NEC and 1099-MISC formats. If you are new to Centerbase and beginning mid-year, enter the amount paid to this vendor from your prior system. This will be calculated in the Total Amount Paid to be printed on your 1099 form.
NOTE: You will need to clear out this amount in the year following your first year with Centerbase, so that you do not accidentally count it in the following year.
We have added all fields necessary for either form to the system. Importantly, we have added a Vendor 1099 Address field, as well as a “Same as Vendor Address” checkbox, so that you do not have to enter the address twice if the addresses are the same.
You can add any additional field(s) you need to the Form Layout. For the 1099-NEC form, the total paid in the year selected will be calculated at the time of printing the 1099s. For the 1099-MISC form, the same calculation will be added to the box selected in Vendor > Cog > Accounting Settings.
NOTE: The calculation is as follows: (Checks Paid to this Vendor) + (Vendor Bill Payments to this Vendor) + (Amt in YTD Amount Field) - (Vendor Bill Refunds from this Vendor) = Total 1099 Amount
Reporting
We have updated the calculations on the 1099-NEC Vendor Report and 1099-MISC Vendor Report to ensure that Vendor Bill Refunds are not included in the Total Amount Paid. We have defaulted the Total Refunds field to be hidden, to avoid confusion. The Refunds are already calculated into the Total Payments field. This can be made viewable by editing the report in the System Settings.
You will also note that there is a Payment Threshold field in the filtering options at the top of the reports.
This filter is an “equal to or greater than” filter. It has been defaulted to $600.00, which is the current IRS threshold for issuing a 1099. You can download the updated reports here:
Vendor Center
We have added a few new features to the Vendor Center, including multi-select checkboxes, columns showing whether the Vendor is a 1099 Vendor, and which form the vendor is assigned. You can also toggle between Prior Year (PY) and Year-to-Date (YTD) and sort by each of these columns.
Also new is an Actions button which contains options to print 1099s or Form 1096. You can also print a 1099 for just one vendor by using the Vendor Actions button.
Printing 1099s
To bulk print 1099s, select the vendors for whom you would like to print 1099s and then click the Print 1099s button under the green Actions button.
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The 1099-NEC prints 3 per page
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The 1099-MISC prints 2 per page
You will be presented with this dialog:
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Select Pre-Printed Form or Blank Paper. If you select Pre-Printed, there is no need to pick which page to print, as they all print the same.
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Choose which form to print.
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Enter the year for which you are reporting these 1099s. This will provide the parameters for the calculation for Non-Employee Compensation or whichever box you have chosen for the 1099-MISC, as well as printing on the form in the appropriate box.
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Enter the number of copies you would like to print.
NOTE ON COPIES: If using pre-printed forms, these will print all selected vendor information for copy A, then all selected vendor information for Copy 1, Copy B, etc. If you plan to print Copy A, Copy 1, and Copy B for all selected vendors, enter 3 copies. You will need to organize the forms so that all Copy A prints together, all Copy 1 prints together, etc.
For pre-printed forms, you will be presented with the red Copy A in the print preview:
If printing to blank paper, you will be presented with a print preview showing the copy you have selected:
Print Form 1096
You can also now print form 1096 for submission to the IRS if you are not required to file online.
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Select the Vendors for whom you will be submitting the forms with Form 1096
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Select Print 1096s from the Actions button.
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You will be presented with this dialog:
Selecting the Name of the Person to Contact will auto-populate the Email address of that person. The number of vendors selected, as well as the totals from the Federal Income Tax Withheld and Total Amount Reported will auto-fill based on the vendors that have been selected. These can be changed if necessary.
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Click Next then Print (make sure you have put the 1096 into your printer tray to print onto).
When you click Print you will be presented with a mockup of what the form will look like. Note that while it appears that the X is not placed correctly in the box, this is a visual issue only and it should print in the middle of the box.
NOTE: Make sure you are printing in Black & White or Greyscale, as the 1096 currently prints boxes 1-5 in red.
Additional Information/Notes
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The Total Payment calculation does not exclude Credit Card payments, which do not require a 1099. If you are paying a vendor via Credit Card, they should not be marked as a 1099 Vendor.
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You are currently able to print onto either type of form, regardless of which form you have assigned to the vendor. Please be sure to double-check that you have selected the correct vendors for the type of form you are printing.
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If you use Online Banking in Centerbase and you only ADD transactions, these are not linked to a vendor and will not be calculated into your 1099 total. Please be sure to MATCH vendor transactions to the transaction in Centerbase for proper 1099 reporting.
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The 1099 Vendor report has been updated but does not currently reflect the 1099 address, if filled out. The address appearing on that report will be the Remit To address from the Vendor Contact record.
The information in this article applies only to US practices. This article is for informational purposes only. It does not constitute legal, business, or accounting advice.
Comments
2 comments
It is omitted from this page that the calculation also relies on a new 'is 1099 payment' flag. Checks do not have the 'is 1099 payment' box visible in the user space and the flag always defaults to false on check payments regardless of vendor settings. Thus check payments are not reported after this was implemented unless admins go in to specifically flag applicable payments after the fact.
There are several improvements to the 1099 process needed. The previous comment regarding payments made after the "is 1099 vendor" is checked is one such change needed. Once a vendor is a 1099 vendor, all payments to that vendor should be included in the total payments. The Vendor Center needs to have filter options so that one can filter for only 1099-NEC vendors for example and then sort by amount to select the ones which need 1099's this year. A 2nd improvement would be to print all 3 forms without needing to select the vendors again. Without the filters one has to individually select the 1099 recipients 3 times, increasing the potential for errors. 3rd - the MISC Box 18/NEC Box 7 field should auto-fill with the total amount for state reporting. Manually entering this information increases the potential for errors also.
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