1099 Processing

Open Accounting / Vendors / 1099 Processing

Prepare and submit your 1099s using the following process:

1.   Use the 1099 screen to prepare your 1099s for processing
2.   Extract your 1099 records to a spreadsheet for submission to a service. We recommend https://www.esmartpayroll.com/
3.   Upload your records to a service for submission and printing

- NOTE: Any credit card payment to a vendor is excluded from 1099's. The credit card processing company is responsible for distributing 1099's to the vendor for credit card payments. 

Using the 1099 screen to prepare your 1099s for processing

You will use the 1099 Processing screen to create your 1099's.

From this screen you can view which vendors are missing W9's and/or are incorrectly set up, create manual adjustments, and send a W9 request letter to new vendors.

Select the Legal Entity and the Tax Year and then click "Continue".

Step 1: View All Vendor Records to Check for Errors

1. Create records with "Ignore Limit" and "Ignore 1099 Type" check boxes checked, and then click the button, "Create Records". This will show you a list of all vendors which will allow you to clean-up the vendor records of any errors.

2. You will be prompted with a message box stating how many 1099 records were processed. Click "OK".

3. You will know if a vendor has an error with the vendor record if it's status in the Error column says "Invalid 1099 Type". When you select the invalid record, a description of the error(s) will be displayed at the bottom of the screen. Use this to verify that each vendor is assigned to the correct vendor type.

4. Select the line and click the "Vendor" button to go into the vendor record to fix the errors.

5. If a vendor is "Missing Images", then they do not have a W9 attached. Check the "Missing Images" box to view which vendors do not have a W9.

Step 2: Create Records for 1099

1. Once all vendors are cleaned up, run "Create Records" again, this time with "Ignore Limit" and "Ignore 1099 Type" unchecked. Note: any time you change any of the vendor information, you will need to recreate the records to see the changes take effect. This list should now show all vendors which you are going to 1099.

Manual Adjustments

1. Select the record you would like to adjust. Click the "Manual Adjust" button.

2. To Adjust an Amount: The manual adjustment screen will display with amounts filled in. The amounts are for initial reference only. Any amount you enter will be an ADJUSTMENT to the original amount in the box. So in the example below, if you want box 7 to be $250,000.00, you would enter the difference, or -30504.59.

3. To Move an Amount from One Box to Another: In the example below, if you wanted to move the $4,000.00 in interest income to Box 7, you would enter a -4000 in the "Interest Income" box, clear out box 1, and enter a 4000 in box 7. Click insert and the record will appear in the above list. You need to recreate the 1099 records to incorporate the manual adjustment.

4. To remove a manual adjustment, select it in the list, click the Delete button, and recreate the 1099 records. Note: you can only have 1 manual adjustment record per vendor so you must delete the adjustment to create a new one.

Step 3: Export List

1. On the Output tab, click "Export List" if you would like to see a spreadsheet of the data. 

Extracting your 1099 records for submission to a service

After you have finalized the 1099s you want to send, you will need to produce a file to send to a 1099 service.  The file produced by Nexsyis contains the fields necessary for a service to submit your 1099 NEC and MISC. Our template has been formatted to support filing through https://www.esmartpayroll.com/ but should contain all of the field necessary to file through the service of your choice. 

You will need Report Permission - Form 1099-MISC (Box 1 Rent) and Form 1099 NEC (Box 1 Non Employee Comp). Extract to run the report to produce the files:

In Nexsyis, select the Reporting tab and the Reports button. Run the reports for Form 1099-MISC (Box 1 Rent) and Form 1099 NEC (Box 1 Non Employee Comp) to produce Excel files containing the 1099 data.  You will need to select the Tax Year and, if you have more than 1 legal entity, you will also need to select a legal entity.

Nexsyis will pop up a Save As dialog box (it might appear behind another window). This will save the file that you will need for submission. 

Once the file has been filed, a temporary report will open showing you what data was saved in your file. Feel free to close this file and NOT save it, as you will not need it. You will only use the file you saved in the popup that you saw when you ran the report. The saved report for file upload will be in the XLS format. 

Submitting your 1099s to service

1. Go to  https://www.esmartpayroll.com/ 

2. Create an account or sign in 

3. Click the tab for Company & Employees and follow the steps to add your company

4. Under "I want to file a Federal Form", select the 1099 -NEC or 1099-MISC 

5. Click the "Start e-file" button under "I want to batch file 1099-NEC"

6. Choose the following options and browse to the file you saved from Nexsyis:

7. Review the Output and click Next 

8. The next screen will show you the mapping All fields should automatically be mapped correctly. Click "Next"

9. Complete the steps to check out. 

Preparing for next year, the W9 Request Letter

You can generate W9 request letters to vendors who are missing images. Click the "W9 Request Letter" button to generate the W9 Request Letter report. Nexsyis will automatically fill in the vendor name and address.