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Filing Out the 1099 Forms

When companies use independent contractors—non-employees who work for them and are compensated for their work—they need to track compensation to these employees and fill out an Internal Revenue Service (IRS) Form 1099-MISC and 1099-NEC (starting in 2020) for each U.S.-based contractor. The 1099-MISC form has boxes that cover non-employee compensation (before 2020), along with other types of payment related to these contractors. The 1099-NEC form has boxes for non-employee compensation. Acumatica ERP gives your organization the ability to track compensation amounts paid to independent contractors during the reporting period.

Independent contractors for whom 1099-MISC and 1099-NEC forms are filled out are defined in the system as 1099 vendors. We recommend that you review the current 1099 instructions before you set up 1099 vendors, and review IRS rule changes each year thereafter.

To be able to configure 1099 reporting, you need to enable the 1099 Reporting feature on the Enable/Disable Features (CS100000) form.

Back to TopIn This Chapter

  • Configuring 1099 Reporting
    • Companies in the United States should submit the following to the IRS:
  • Maintaining and Filing the 1099 Forms
    • In this topic, you will read about how to track 1099 data during the reporting year, and how to close the reporting year.
  • Filing the 1099 Forms Electronically
    • If your company files 250 or more Form 1099-MISC or Form 1099-NEC forms for any calendar year, the IRS requires that you file the forms electronically. If fewer than 250 forms are filed, you can file them either electronically or by mailing paper documents. If you file the forms electronically, you do not need to file duplicated paper documents.
  • End-of-Year Actions
    • At the end of the 1099 reporting year, you print or prepare electronic versions of 1099-MISC and 1099-NEC forms for each 1099 vendor by using the 1099-MISC Form (AP653000) and 1099-NEC Form (AP653100) forms. You then send the appropriate copies of the forms to vendors and the IRS.
  • To Correct 1099 Amounts and Boxes
    • You may need to change an amount or 1099 box to be reported on Form 1099-MISC after a bill from a 1099 vendor has been paid in the following cases:
  • To Reopen a 1099 Year
    • After a 1099 year has been closed, you may discover that it was closed by mistake. You can reopen a 1099 year on the Close 1099 Year (AP507000) form.