Revised: 11/25/2020

How to Process 1099s for AP Easy Follow

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

These are the easy to follow step by step direction for 1099 Processing.  This will use the most basic steps commonly used by Horizon Customers.  Please also see the more detailed instructions at FS_How_to_Process_1099s

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

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:

1. Main Vendor Name and Address
2. Attention Line and Main Address
3. 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.  Many customers use #3 1099 Name Line and Address

Work file options

• If your company uses Section 8
  • The first pull should be from Section 8 program. Place the dot in Remove ALL 1099 Information in Work File before Pulling
  • The second Pull will be from Financials, place the dot in  Add to Work File  
• If your company does not use Section 8
  • In Financials place the dot in  Remove ALL 1099 Information in Work File before Pulling for the pull

Select Combine Payees By Tax ID 

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
• 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.

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.

• 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