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October 31, 2014
3 Tips on the 1099 Process
By Frederic Portal, Ataway Director of Strategy & Alliance

In order to comply with Internal Revenue Service (IRS) tax requirements, Organization must report non-employee compensation to the IRS on a calendar-year basis. Tax season is stressful: if something goes wrong, the IRS is not known for being particularly forgiving.  Accurate reporting of 1099 information is dependent upon the good qualification of invoices made by your organization throughout the year. For example, every time a vendor is set up or an invoice is created, 1099 information is required. Paying special attention to these and other activities throughout the year will reduce the amount of year-end work necessary to complete 1099 processing.

We recommend to our client to start to start to review supplier and invoices early on to clean the data before the end of the year, it will accelerate the creation of the 1099 report in January and will improve its accuracy. You definitely do not want to have to reissue a corrected 1099’s reports.

The typical errors that we see and help organization with include:

First, the supplier is not marked as 1099. You have the ability to retroactively convert all invoices/payments for that vendor as 1099 lines.

The second thing you want to look at are the payments. You will need to review the payments to be sure that they are 1099 and convert those invoice/payment lines where needed. You want to avoid later corrections after the correction is sent as much as you can. Depending of the type of the expenses: Services vs. reimbursable expenses

On other place to look at is the setup of your vendors: Do they have the proper distribution codes? Does all the transactions are coded correctly?

Leverage your system, the PeopleSoft 1099 functionality lets you manage the set up, and it has a very strong abilities on the cleanup side of the processes, keeping the data integrity and saving you time. Usually the 1099 process is perform once a year by breaking up the annual process into multiple timeframes, every month end if your closing monthly will enable you maintain your skills, clean your data and reduce the corrections you have to do in January.

If you are in PeopleSoft 9.1 or higher you could look at PeopleSoft eSettlements. This PeopleSoft product is a global electronic invoice presentment and payment (EIPP) solution that enables organizations to optimize the settlement process with electronic invoices and payments, matching online approval, dispute resolution, and email notifications. This solution will help you to Streamline and Automate Invoice Management, Streamlined Processing and Reduce Costs, Improve Supplier Collaboration.

Starting in PeopleSoft release 9.1 the solution allow you to share with each vendors the 1099 reports you will report in December. The supplier will receive a notification and will be involve early on in the process of reporting the 1099. It will reduce errors and improve supplier collaboration.

Consult with Ataway’s Team of Experts today, and learn how we can help you with your 1099 Process, upgrade, offshore.

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