Revised: 11/25/2020

How to Process 1099s for AP

For 2020 there is a new 1099 form, you may need to file both a 1099MISC & 1099NEC

Do not start your 1099 Process before receiving your 2020 end of year update.  You will need to Pull 1099 Information after you receive your software update.  To start the 1099 process you will need Financials version 16.190.5.1 or higher and be using the V16 Section 8 program 16.190.5.1.  Do not pull the Section 8 1099 data using the old V11 program. 

You may also watch this How To Video on Vimeo  https://vimeo.com/485688182

For the short and simple (as much as possible) directions go to FS How to Process 1099s Easy Follow

 NOTE:  If you have AP and Section 8 data, Horizon recommends that Section 8 data is pulled first and verified/corrected, then add AP data.

CAUTION:  1099 data is often stored in the same file, both AP and Section 8 information will combine unless different values in Add to Reporting Group are used.  Section 8 and AP staff should coordinate who will run Remove ALL 1099 Information in Work File before Pulling to delete last year's information and who will Add to Work File.

It is also recommended that all 1099 information for the same Federal ID, state ID are pulled into one company.  If there are multiple companies in Horizon, but these are for the same Federally recognized company that has one Federal ID, combine this information into one place by using the Add to Company option.

Before pulling, please verify that vendors using a Social Security number as the Federal ID and using their personal name not a company name have their name entered in the fields for Last, First, Mid, and Suffix. * This is not required if submitting paper copies to the state of Pennsylvania. However, most Horizon customers are now required by PA to file electronically.  

Pull the 1099 File

This utility will pull the payment information for all vendors that are marked to send a 1099.  In the Vendor Master - the Send 1099? box must be check marked.  Vendors that the box is unchecked will not be included in this data.

It is also recommended, that the Federal ID box have the vendor's correct ID# before pulling the data.  Any blank Federal ID's must be entered later in the "Edit 1099 Information" to the Recipient's ID field before printing.  Vendors with a blank Federal ID will not print a 1099 form and will not be included in electronic files.

When vendor information is pulled, the payment will be assigned to each box based on certain criteria:

• Vendor payments are pulled based on the check date, not the invoice or general ledger date.
• Box assignment on the 1099 are based on:
  • If the General Ledger Account used for the Accounts Payable Distribution has a 1099 Box Code assigned, the process will assign the payment amounts based on this 1099 Box Code.
  • If the General Ledger Account used in the Accounts Payable Distribution does not have a 1099 Box Code assigned, then:
    • If the Vendor has a 1099 Type assigned in the Vendor Master, the payment amounts will be assigned based on the 1099 Type
    • If the Vendor has the 1099 Type set to <undefined>, the process will default to Box 7 - Non Employee Compensation
    • All Landlord payments in the Section 8 program will default to Box 1 - Rents.

Go to Utilities>>Pull 1099 Information

On the Pull 1099 Information view

• Enter the Starting date:  Enter the beginning of the year you are reporting for - example:  01/01/2020
• Enter the Ending date:    Enter the date for the end of year you are reporting for - example:  12/31/2020

Vendor Pull Options

Select the vendor pull option:

• Main Vendor Name and Address
• Attention Line and Main Address
• 1099 Name Line and Address

The vendor pull option depends on where you have the information entered in the vendor master for your 1099.  If you only use the Check Information address lines, use #1.   If you have entered the 1099 information on the Attention Line and Main Address lines use #2.   If you have entered your information on the 1099 Address tab…use #3.  NOTE for option 3: when the Vendor Name is blank on the 1099 Address tab the process will use the vendor information from the Main tab for that vendor.  If you are not sure…use #1 and review the information.  1099 information may be pulled again if you did not get the results you were looking for (caution should be taken if Section 8 was already pulled).  When using the first two options, the Name and Address information will pull from the Main tab for every vendor.  If using the 1099 Name option, any vendor that has a blank Vendor Name field, the pull will be from the Main tab.  If the 1099 Vendor Name has 1 or more characters in it, it will pull from the 1099 tab, even if the address fields are blank.

Work file options

• Place the dot in either Add to or Re-Create Work File for Reporting Group Selected or Remove ALL 1099 Information in Work File before Pulling.
  • Add to Work File - if you are pulling information to add to information already in the file.  This adds the information from this pull to information already pulled such as Section 8 information or to add information from another paygroup.  If you pull the same information twice it will be duplicated.  If you pull with the Add to Work File option using a reporting group that has already been used (or left blank) then it will duplicate the information in that reporting group.
  • Re-Create Work File for Reporting Group Selected - is used when you are pulling to different Reporting Groups.  This will clear all information in the file for the Reporting Group entered.  It will not clear any other Reporting Group Information.  If you Pull from Paygroup for multiple paygroups to this Reporting group, you will need to re-pull and Add each paygroup.
  • Remove ALL 1099 Information in Work File before Pulling - is used for the first pull or to remove duplicated information.  It clears out any information already in the file and replaces it with the new information being pulled.

Other Selections

• Combine Payees By Tax ID – will combine vendors with the same tax ID (from the Vendor Master>>Federal ID) on the same 1099.  If you check this box, it is recommended that all Federal ID fields be completed in the Vendor Master before pulling.  If you do not have the correct ID for a vendor, enter a unique ID (the ID may contain letters and/or numbers).  The ID may be corrected in the 1099 Edit view after pulling data.  Correcting the information in the Edit area does not update the 1099 field in the Vendor Master.

• Pull from Paygroup – If blank, all pay groups will pull.  If you want to pull based on a pay group, enter it here.  This option is used if the Horizon company contains information for multiple Federally recognized corporations with different Federal ID numbers.  Use paygroup to pull information that has been posted using a specific accounts payable paygroup.  A pull will have to be completed for each paygroup.
• Add to Company -  May designate a company to send the 1099 information to. Use this option to send the information from this company into another company that has the same Federal ID number.  
  • For Example:  Company M001 and M002 are 2 departments within one Federally recognized corporation.  Pull M001 with the Remove All 1099 Information in Work File before Pulling option, then pull M002 with the Add to Work File and the Add to Company with M001 entered.  This will pull all data into M001.

• Add to Reporting Group -  May designate a group code (can make one up) to group 1099 information in.  All Groups are in the same work file within a company.  Use this option to separate data of different Federally recognized corporations with different Federal IDs.  The Pull From Paygroup option should also be used to separate the data.  
  • For Example:  Company S001 contains information for two Federally recognized corporations.  AP voucher information for corporation one is entered with paygroups A1 and B1.  AP voucher information for corporation two is entered with paygroup 32.  Pull using Remove ALL 1099 Information in Work File before Pulling with Pull from Paygroup with A1 entered and Add to Reporting Group with C1 entered.  Then process a second pull using Add to Work File with Pull from Paygroup with B1 entered and Add to Reporting Group with C1 entered.  This will pull all information for paygroups A1 and B1 into reporting group C1.  Then pull a third time using Add to Work File and Pull from Paygroup entering 32 and Add to Reporting Group entering C2.  This will keep corporation one information separate from corporation two.  Use these reporting groups again for printing and file creation.

After making these selections click on the Pull button.  (If you are not satisfied with the outcome, you may go back and edit the Vendor Master, or Void checks then re-pull (re-create) the files.  Be careful if Section 8 information has already been pulled as you could wipe out that information as well.)

Edit the 1099 Information

Go to Utilities>>Edit 1099 Information.

• You may edit/change information in this area
• You may add other 1099s manually, if needed
• 1099s may be deleted from this file
• Use the 3 tabs to view and edit data for the type of Form to be submitted: MISC, NEC and Interest
• If you recorded state tax withholding during the year:  the pull will split the withheld amount between MISC and NEC based on % split of total payments.  If you do not agree with the amounts, you may make corrected in this view. 
  • Example: If you have paid a vendor $4,000 for the year $3,000 for NEC, $1,000 for MISC.  75% NEC, 25% MISC.  And have withheld $400 it will split the withholding as $300 NEC, $100 MISC. 
• State income: If there was State Tax Withheld, Then the State Income box will be completed with the total of all payments shown on this form.  If only part of this income is for the state withheld for, please manually correct the State Income amount.
• State ID: If there is State Tax Withheld you will need to enter the state abbreviation, a space, your 8 digit state ID.   Example: PA 12345678

·         Federal Tax Withholding: If you are entering Federal Tax Withholding on payments, the pull will split the withheld amount between MISC and NEC based on % split of total payments, Same process as for State Tax.  If you do not agree with the amounts, you may make corrected in this view. 

• The Reporting Group field has been added to assist in manually adding 1099 information to a specific Reporting Group.
• If you pull again using Re-Create or Remove options after editing the 1099s, any edited information will be replaced.
• The Electronic 1099(S8 Only) will flag the 1099 to not print the Vendor copy and only send to the Horizon Document Viewer Service.  This should only be used for Section 8 Landlords that will access their 1099 from Document Viewer.  

Review 1099 Name Control Information

Go to Utilities>>Review Name Control

• If you are submitting the 1099s electronically to the IRS, the name control fields must be filled in.

• Name Control – name control information may be entered here for files missing the information or click on the “Generate Name Control Information (Best Guess)” button at the bottom of the view.  Please review the results for errors.  
  PLEASE NOTE:  This program makes a best guess at the name control and should be reviewed.  The Name Control should be a 4 character ID using the first four letters of a person's last name or the first four letters of the company name.  Do not use special characters such as spaces, -, !, @, #, etc.  Please review IRS Publication 1220 for complete instructions on name control rules.

1099 Final Edit List

Go to Utilities>>Final Edit List.

• Enter a Reporting Group or leave blank for all.
• Select up to 3 different report options from the 10 column selections available to print on the report.  Section 8 should include Rents.
• Dollar Limit:  Enter a dollar amount to preview or print a report for 1099s above the amount entered.  For example if 600.00 is entered as the limit, only 1099s with totals above 600.00 will be shown on the report.
• Electronic: Select All, Not Electronic Only, Electronic Only
• File Mode: Select All, Only Box 7 nonemployee compensation, Exclude Box 7 nonemployee compensation
• Press either the Preview or Print button to view or print the report.  
• If any of the information is incorrect, please correct the information in the edit area.

Print 1099 Forms

Note:  Users should make sure they have an updated version of the Financial module to ensure that the printed 1099s comply with current requirements.  Formats with "Complete" in the name may be previewed to review before printing.

Go to Utilities>>Print 1099 Forms

• Company Information – If the correct company information is not displayed, enter it in the appropriate lines.  You may save for future pulling (Go to System>>Company Information).
• Federal ID – Verify the correct Federal ID is entered here and it has no spaces or hyphen.  
• Year to Print:  Please enter the year to print at the top of the 1099s.

Sequence:

Start and Ending Control:

• To print all the 1099s leave the Starting and Ending Control fields blank.  (Control numbers may be found by checking the edit screen).  You may enter a range of control numbers to print selected 1099s.

Reporting Group:

• Enter or select a Reporting Group to print those 1099s associated with it or leave blank for all.  Leave this field blank if you did not use reporting groups.

Electronic

• Select one of the following:
  • Not Electronic Only (paper)
  • All
  • Electronic Only

Form Mode:  Select the Form to Print:  MISC, NEC, or INT
Warning: Changing this selection will also change the Format information selected to the Pre-Printed version.

Top Adjustment and Left Adjustment:  To be used for printing on Pre-Printed forms such as the IRS Red Copy.

• Recommended: Test print the 1099 IRS Red Copy and other Pre-Printed forms not purchased from Horizon.  Print the first 2 Control Numbers to plan paper (or on an extra form) hold it up to a form to see if it is aligned.   If the form is not printing in the boxes, Use the adjustments.
  • Using Adjustments
    • There are 2 sets of adjustments:  Top form and Bottom form.   If both forms need to move the same amount, then use the same amounts for both forms.    Entering an amount in the Top form will not move the bottom form.
    • Up/Down - If printing to low on page enter -25, if printing to high enter 25.  
    • Left/Right - If printing to far to the right enter -25, If to far to the left enter 25.  
    • Test print, increase or decrease the adjustment values until the printing aligns within the boxes.

Format Information:

• Select the correct format:  MISC, NEC and INT all have a Preprinted option for use with the IRS red copy and other preprinted forms.
  MISC and NEC each have 4 complete forms B, C, 1, 2.  A “complete” form is to be printed on blank perforated paper.  Program will print the boxes, labels and data.   

• Dollar limit:  Enter a dollar amount to print 1099s above the amount entered.  For example if 600.00 is entered as the limit, only 1099s with totals above 600.00 will be printed.

• Repeat the steps for printing the 1099 forms until you have all of the pages that you need printed.
• The 1096 form is not available to print.  Please complete by hand.

PRINT: When all information has been entered and all selections are made you may Print.  Click “Print with setup” to select a printer and options, or Click “Print” to allow default to your default printer. 

·         Print 1 set of forms

·         Review your pages for any problems

·         Select the next format needed then print

·         Repeat until all copies are printed

·         Recommended: Use the Export – PDF or Email options to save a copy of the 1099 forms to a PDF file for future reference or printing.  Use the Complete Copy B For Recipient or Complete Copy C for Payer.  Save the file to a safe location that will be backed up.

Create 1099 File  

Go to Utilities>>Create 1099 File

If you are submitting your 1099 information electronically to the IRS, there is no need to print the red copy of the 1099 or the 1096.

NOTE – make sure the name control field is filled in on all 1099 records…see Review 1099 Name Control Information

There a 4 file types created in this process based on the field selections in Agency Mode and in Form Mode.

• Enter a Reporting Group if using this option Otherwise leave blank.

• Company Information – If the correct company information is not displayed, enter it in the appropriate lines.  You may save this for future pulling (Go to System>>Company Information).

• Enter in your Federal ID – no spaces or hyphen.
• Enter in your Contact name, phone number and email address.  These are required, files without this information will be rejected.
• Select the File Mode:  Federal or State/CSV
  • For Federal file mode:
    • Enter the year you are reporting the taxes for
    • TCC - Enter your code given to you by the IRS
    • Name Control - Enter your name control. (First 4 characters of company name or Last Name)
  • For State/CSV file mode:
    • Enter the year you are reporting the taxes for
    • Enter your 8 digit State Account withholding number with no dashes or spaces.
    • The Type of Entry will prefill with 001.  You should not change this unless you are a Sole Proprietor, in which case you would enter "002"

• Form Mode: Select 1099 MISC or 1099 NEC
• File Name:  Click on the ... Browse to select a location to save to.  Enter the file name.  Example: C:\Users\"USERID"\Documents\Horizon\IRS1099-2020.  The folder used in the path must already exist.  Click the Save button to save the location and Name (this does not create the file).
• Click on CREATE FILE

Upload the file you created to the https://fire.irs.gov/
or to PA E-TIDES at https://www.etides.state.pa.us/ 

11/25/2020