1099-NEC and 1099-MISC Directions (v2-2020)

Purchase Forms 1099-MISC and 1099-NEC from office supply store; select forms that print two per page.

Go to Agents>>Setup>>Agents

All agents by default will have the 1099 Form set to 1099-NEC.  If the agent does not receive a 1099, then you may edit and select N/A from the 1099 Form dropdown.

Go to Agents>>Processing>>1099s

On the 1099 Data tab, select Tax Year 2020

Select 1099-MISC and 1099-NEC from the Tax Form dropdown

Click Create 1099 Records

Click on Create 1099 records (all agents and vendors)

Ensure all 1099 recipients have a Valid Tax ID number, if not you will need to edit applicable recipients

Navigate to the 1099-MISC Printing Layout tab and select Edit, click Reset to Defaults, then click Print Test

Check to see that all values print into each box correctly either by printing to an actual 1099-MISC form or print to plain paper and hold up to actual form

Edit each field as needed; shift up, down, left or right.  If all fields need to shift up, down, left or right, use Shift all

Navigate to the 1099-NEC Printing Layout tab and select Edit, click Reset to Defaults, then click Print Test

Check to see that all values print into each box correctly either by printing to an actual 1099-NEC form or print to plain paper and hold up to actual form

Edit each field as needed; shift up, down, left or right.  If all fields need to shift up, down, left or right, use Shift all

Navigate to the Reporting tab

The Exclude recipients under $600? box defaults as checked.  Review this with your accountant and uncheck if instructed to do so.

Print Pre-1099 report by ensuring Pre-1099 is selected in the Report dropdown field, then click Process Report

Both 1099-MISC and 1099- NEC records will appear on the report; 1099-MISC are referenced first, 1099-NEC records last.

Print this report and verify that all totals are correct prior to printing 1099s.  If corrections are needed, make the corrections in source records before creating 1099 records again.

After corrections are made to source records, you will need to create the 1099 records again.

Note:  Generated 1099s can be edited; however, if you recreate 1099s later, those records will revert to defaults.  You will receive the following message when recreating 1099 records.

Note:  You can add additional 1099 records if you have paid vendors or agents outside of the program by clicking the Add button.

When you are ready to print the 1099s, select Official 1099s from the Report dropdown. Then select 1099-NEC from the dropdown to the left of the Process Report button.

Ensure all fields are completed in the Payer Info section.  If anything is missing, click Edit and complete the required fields, then click Save.

Click Process Report.

1099s will print to screen.

Insert Copy A of the 1099-NEC forms into your printer.  You may want to print only one page to see if values print in each box correctly.

Repeat this process for Copy 1, Copy B, Copy 2 and Copy C.

Once the 1099-NEC forms are printed, repeat the above steps for printing 1099-MISC forms by selecting 1099-MISC from the dropdown to the left of the Process Report button.

Note:  All vendor records default to 1099-MISC, you may edit this by selecting the correct form from the 1099 Form dropdown in the vendors Setup record. The options in this dropdown, are 1099-NEC, 1099-MISC and N/A.

If the vendor is required to receive a 1099, check the Print 1099? box to default each bill to 1099able.  You can uncheck this box in the bill if a particular bill does not qualify for a 1099.

If you are required to or choose to submit 1099s to the Internal Revenue Service electronically, select IRS Format – All 1099s (excludes corrections) from the Export dropdown.

Click on the “…” button to browse to where you would like to save the file and then click Generate Export.

If you are required to or choose to submit a test file to the Internal Revenue Service.  Select IRS Format – Test File from the Export dropdown prior to clicking Generate Export.

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