1099 Processing
Open Accounting / Vendors / 1099 Processing
Prepare and submit your 1099s using the following process:
- Use the 1099 screen to prepare your 1099s for processing
- Extract your 1099 records to a spreadsheet for submission to a service
- 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.
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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.
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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.
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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 all of the fields necessary for a service to submit your 1099s. If, for some reason, the service you are using cannot use the file, contact us.
If you have not already done so, you will need Report Permission - Form 1099-NEC Extract to run the report to produce the file:
In Nexsyis, select the Reporting tab and the Reports button. Run the Form 1099-NEC Extract report to produce a spreadsheet 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.
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Nexsyis will popup a Save As dialog box (it might appear behind another window). This will save the file that you will need for submission. Use the file name form_1099_NEC_2024 (or current year).
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
Go to Sign In | TaxBandits. Create an account or sign in
Select the 1099 -NEC form option
Select the Current Tax Year
Add Payers:
You will need to enter your company information as the payer:
You can now upload the 1099s from the spreadsheet created using the 1099 extract:
Select the option shown below and browse to the 1099 file you saved from Nexsyis:
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Click Continue to Preview to view the uploaded records
If the data looks correct, click the Continue to Import button:
You have a last chance here to edit any records that need to be changed. Once you are sure of your data, continue to checkout.
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On this final screen (before payment), you'll be given some options to select at the top. Choose a package option if your State has taxes withheld, but you can also choose to only file with the Federal IRS.
A price summary will be displayed at the bottom. Once you have selected the option that you need, press the red Continue button to begin the payment checkout process. Your taxes are submitted!
If for any reason, your file upload has errors and cannot be easily modified to be accepted, you can manually upload your file. From there, TaxBandits will personally and manually upload your data. This process takes longer and as such is not recommended unless other options have been exhausted. When logged in, click on the Settings tab at the upper right. Select the W-2/1099 tab on the left of the Settings screen. Finally, click on the Secure File Upload button and select your 1099 file for upload.
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.
