1099 for LLC vendors

Issue:

1099

We have some vendors that are LLC title companies and because of that we gave them a 1099...the problem is that all our vendors are setup under box #7 Nonemployee compensation and not all vendors should be setup that way.

Does the software allow us to use multiple boxes? Do we have set them up differently or do separate runs?

Resolution:

The system does allow you to use the other boxes on the 1099 form.

First you need to use options 26 & 27 on the file maintenance menu to identify the boxes you want to use and to assign GL distribution accounts to the appropriate boxes. Then use the options on the right side of the year-end menu to build and edit the work files and print the forms. If you normally use options 1-3 then use options 11-13. Likewise if you usually use 5-7 then use 15-17.

There is no way to tell the system that these are corrected forms so you will need to check that box by hand.

These options use different work files than the box 7 options so they won't interfere with the forms you already printed. You should delete the corrected vendors from the box 7 files before you create the IRS transmission file, if you use that option.

These options also use a different printer file so you should do a test run on the form in case there are form alignment issues.