Finance Work Session
1099 Processing FY 2023
ctcLink PeopleSoft Training | FIN�Washington State Community and Technical Colleges
Finance Work Session:�1099 Processing FY2023
This is an overview session on 1099 Processing in ctcLink.
Topic Learning Objectives:
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1. Understanding 1099 Withholding
1099 Reportable items are those items that are payable to unincorporated entities(individuals, sole proprietors, or partnerships) for services, non-employee compensation, rents, royalties, or prizes and awards.
Note: Refer to IRS Publication 1220 as the definitive resource for 1099 rules and regulations @ www.irs.gov
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What is supported in PeopleSoft Payables�
Each District/Colleges is responsible for tracking it’s 1099 reportable items, sending reports to the individual Suppliers, and sending a file to IRS noting the 1099 reportable items and Suppliers.
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2. Reviewing the 1099 Setup
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Review 1099 Setup�2.1 Review the A1 Annual Calendar - OPTIONAL
Navigation: Set Up Financials/Supply Chain > Common definitions > Calendars/Schedules > Detail Calendar
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Review 1099 Setup�2.3 Review Withholding Types – OPTIONAL
There are different Withholding Types in the system:
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Review 1099 Setup�2.3 Review Withholding Classes - OPTIONAL
Reviewing Withholding Classes for 1099M & 1099N
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Review 1099 Setup�2.3 Reviewing the Withholding Codes - OPTIONAL
Withholding Codes are used to group together entities, types, and jurisdictions.
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Review 1099 Setup�2.4 Setting Up Report Control Information - REQUIRED
Setup Report Control Information is required.
QRG 9.2 Setting Up/Reviewing Report Control Information
Required:
AP Manager Role
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3. 1099 Tasks Throughout the Year
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1099 Tasks Throughout the Year�3.1 Entering 1099 Withholding Suppliers
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1099 Tasks Throughout the Year�3.2 Run CTC_AP_1099_SUPPLIERS Query
Monitor 1099 Suppliers:
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1099 Tasks Throughout the Year�3.3 Entering 1099 Withholding Vouchers
Withholding vouchers are the primary means of how the system keeps track of the amounts that are to be reported to the IRS each calendar year.
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1099 Tasks Throughout the Year�3.4 Posting Payment from 1099 Vouchers
After creating and processing vouchers with 1099 withholding amounts, it is also necessary for you to post the payments from these vouchers before completing any additional 1099 processing.
By posting the payments in the system updates Supplier account balances and creates balanced accounting entries for all payment-related transactions.
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1099 Tasks Throughout the Year�3.5 Run CTC_AP_1099_SUPPLIERS_VCHRS Query
Check for Vouchers flagged as N but should be Y or vice versa
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4. Post Withholdings
This process combines Voucher & Payment information into Withholding Tables
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Post Withholdings�4.1 The Post Withholding Process
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5. Review 1099 Items
Review Withholding Transactions by:
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Review 1099 Items�5.1 Vouchers by Supplier – View WH Transactions
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Review 1099 Items�5.2 Withholding Payments
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Review 1099 Items�5.3 Supplier Balance by Class
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Review 1099 Items�5.4 Withholding Balance by Supplier
Original: Transaction generated by Post Withhold Process
Override: Original Entry changed by user
Legacy: Entry added by User/Update Withholding Transaction
QRG 9.2 Withholding Balance by Supplier
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Review 1099 Items�5.5 Withholding Balance for All Suppliers
Query: CTC_AP_1099_ALL_WITHD_BALANCE – for a list of Withholding balances for all Suppliers
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Review 1099 Items�5.6 Withholding Mismatch Report
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6. Corrections & Adjustments of 1099 Items
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Corrections & Adjustments of 1099 Items�6.1 Withholding Supplier Update
The Withholding Supplier Update process is used to change Withholding applicability, entity, type, jurisdiction, and/or class. When you use this type of update, the system will apply the update to all vouchers for that Supplier.
After completing the update, you must run the Withholding Update Process.
QRG 9.2 Withholding Supplier Update
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Corrections & Adjustments of 1099 Items�6.2 Withholding Invoice Line Update
The Withholding Invoice Line Update process can be used to update withholding information for a withholding Supplier at an invoice line level. In other words, if you only need to change a particular voucher or voucher line, you can do so. You can change the withholding applicability, entity, type, and jurisdiction per voucher line.
After completing the update, you must run the Withholding Update Process.
QRG 9.2 Withholding Invoice Line Update
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Corrections & Adjustments of 1099 Items�6.3 Running Withholding Update Process
Run the Withholding Supplier Update Process or AP_WTHD_UPDT after making corrections.
By running this process, the system updates the withholding transactions that you adjusted and updates the underlying voucher tables as well.
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Corrections & Adjustments of 1099 Items�6.4 Manual Adjustments (Adjusting Withholding)
This process is for manually adjusting posted withholding transactions by Supplier or adding withholding entries from a legacy or third-party system.
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Corrections & Adjustments of 1099 Items�6.5 After Completing Adjustments – Review Again
After making all necessary adjustments, you need to Review your 1099 items again (see section 5).
Review, make corrections, and then re-review until all necessary updates and corrections have been made.
Note: There is 1099 Patch Update for 2023 which is schedule to deploy in Production on 12/14/2023.
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7. Running Withholding Report Post & Producing 1099 Copy B Reports
Run the Withhold 1099 Report Job Process
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Running Withholding Report Post and Produce 1099 Copy B Reports�7. Run the Withhold 1099 Report Job process
After all adjustments have been made and you have reviewed your 1099 items again to ensure no more corrections are needed, you can proceed with running the process Withhold 1099 Report Job.
QRG 9.2 Running Withholding Report Post & Producing 1099 Copy B Reports
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.1 Run Control Setup
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.12 Run Control Setup Notes
Notes:
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.13 Reports: APX1099N & APX1099CT
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.14 AP_APY1099 link to access IRS_001 File and Save it to a secure location
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.15 Review IRS_001 File
Highly recommend:
Review 1099 Copy B Forms
BEFORE printing them out!
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.2 Nonemployee Compensation Copy B
Sample Form
1099_NEC
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.21 Miscellaneous Information Copy B
Sample Form
1099_MISC
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Running Withholding Report Post and Produce 1099 Copy B Reports�7.3 IRS Updates for 2023
What’s New-
Combined Federal/State Filing (CF/SF) Program:
Added District of Columbia and Pennsylvania to list of participating states in Table 1: Participating States and Codes. For more 1099 details, please refer to Publication 1220 For Tax Year 2022 on the IRS website.
Form Changes for 2023
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8. 1099 Withholding to Send Detail Report
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1099 Withhold to Send Detail Report �8.1 1099 To Send Detail Report
The 1099 Withhold to Send Detail Report lists all the information created by the 1099 reporting process and is a replica of the data in the file that you are sending to the IRS.
QRG 9.2 1099 Withholding to Send Detail Report
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1099 Withhold to Send Detail Report �8.2 1099 To Send Detail Report
View Report APX8056.pdf
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1099 Withhold to Send Detail Report �8.13 1099 To Send Detail Report
Sample Report
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9. Completing 1099 Processing for the Year
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Completing the 1099 Processing�9.1 Sending IRS the TXT File
Ready to file?
This electronic filing is done through the IRS FIRE site, https://fire.irs.gov/
For detailed instructions on sending this file, refer to IRS Publication 1220. You can find this publication on the IRS website: http://www.irs.gov/pub/irs-pdf/p1220.pdf.
You can also find more detailed information from the IRS at http://www.irs.gov/instructions/i1099gi/index.html.
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Completing the 1099 Processing�9.2 Running the WTHD_SENT Process
Final Step is to run the Withholding Sent File. This application engine process finalizes the 1099 reporting and file creation process.
Note: Do not run this process until you have sent your file to the IRS and received confirmation of successful transmission. The system uses this information when creating correction or replacement files.
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Important Reminders:
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IRS Resources
Internal Revenue Service
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Due Dates for Filing 1099
Note: If any due date falls on a Saturday, Sunday, or legal holiday, the return or statement is considered timely if filed or furnished on the next business day.
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Finance Work Session�1099 Process for FY2023
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Finance Work Session:�1099 Process FY2022
Thank you for your time and participation today!
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