Transcript Slide 1

1099 Reporting
Best Practices
Zubin Gidwani, Dynamic Budgets
Mike McDowell, Sta-Home Health & Hospice
GPUG® Summit 2011
November 8-11
Caesars Palace – Las Vegas, NV
Agenda
 Summary of Recent Changes in Reporting Requirements
 Understanding How GP Records 1099 Amounts
 Validating Data
 TIN Matching
 3 approaches to managing 1099s Printing / Filing
 Q&A
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Proposed Health Care Bill
Expanded Reporting Changes for 1099s
1099 filing for Purchase Card transactions (Corporate
Credit Cards) will shift from end-user organizations to the
financial institutions
(except for federal, state and large local governments to
report all payments through any payment method)
 http://www.napcp.org/news/48517/IRS-releases-finalregulations-related-to-1099-reporting-changes-for-2011.htm
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Understanding how GP records
1099 amounts
 1099 amounts are stored in the vendor summary
records
 AP determines transaction by transaction where
amounts record
 Prior to GP 2010, Utilities in PSTL to update 1099
amounts
 GP2010 - Update 1099 Information
Tools-Utilities-Purchasing-Update 1099 Information
 Recording manual adjustments to 1099 Details
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Vendor Cards
From the Vendor Card
you go into Options to
view the Tax Type and
1099 Box
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Routing 1099 amounts at Transaction Entry
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1099 Details
As the transactions post the
system updates the YTD 1099
Summary amount on the
vendor record
To view & Edit 1099 detail
information:
Cards -> Purchasing -> 1099 Detail
To view 1099 detail:
Inquiry -> Purchasing -> Vendor
1099 Details
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Why would a 1099 Summary be wrong?
 The Vendor Summary buckets update with
appended amounts from each transaction as the
transaction posts.
 You can change a vendor’s “1099 Type” at will, as
many times as you wish.
 Prior posted transactions do not change
automatically, new posted transactions will
accumulate in the new bucket…
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How do you fix a 1099 Summary if its wrong
GP 2010 Update 1099 Information Utility
Tools -> Utilities -> Purchasing -> Update 1099 information
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How do you validate
Amounts & Recipients
 Recipients (start with Smartlists)
– Addresses
– Formal Name per IRS records
– TaxID
 Box Types
 1099 vs non-1099 qualified payments
to 1099-vendors
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Compare Transaction Summaries
to 1099 Amounts
If you don’t “Trust” your 1099 summaries, you can review
transaction summaries with the following SQL Query
Disclaimer: SQL Scripts can damage or destroy data. Use these
scripts with caution on a test system first. Backup your
database before using.
Use the following script is at your own risk. We take no
responsibility for any harm or data loss caused by these scripts
nor do we warranty the validity of the results.
The script is provided to assist your 1099 research activities, and
must be independently validated against core system reports
should you attempt to use these for final data extraction.
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Sample SQL Query for 1099 amounts
based upon Payables Transactions
SELECT TOP (100) PERCENT CAST(DB_NAME() AS char(5)) AS CompanyDB,
dbo.PM30200.VENDORID, SUM(dbo.PM30200.DOCAMNT) AS SumOfDOCAMNT,
dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2, dbo.PM00200.CITY,
dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1,dbo.PM00200.TXIDNMBR,
dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, SUM(dbo.CM20200.TRXAMNT) AS SumofTrxAmt,
dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1
FROM
dbo.CM20200 INNER JOIN dbo.PM30200 ON
dbo.CM20200.CMTrxNum = dbo.PM30200.DOCNUMBR AND dbo.CM20200.CHEKBKID = dbo.PM30200.CHEKBKID
INNER JOIN dbo.PM00200 ON
dbo.PM30200.VENDORID = dbo.PM00200.VENDORID
WHERE (dbo.PM30200.DOCDATE > CONVERT(DATETIME, '2009-12-31 00:00:00', 102)) AND
(dbo.PM30200.DOCDATE < CONVERT(DATETIME, '2011-01-01 00:00:00', 102)) AND (dbo.PM30200.VOIDED = 0) AND
(dbo.CM20200.VOIDED = 0)
GROUP BY dbo.PM30200.VENDORID, dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2,
dbo.PM00200.CITY, dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1, dbo.PM00200.TXIDNMBR,
dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1
HAVING (dbo.PM00200.TEN99TYPE > 1) AND (SUM(dbo.PM30200.DOCAMNT) >= 600)
ORDER BY dbo.PM30200.VENDORID
(TEN99Type>1 will exclude “not 1099” vendors)
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Best Practices: Tin Matching
As Part of your Vendor Maintenance:
 Perform Tin Matching as part of the New vendor creation
process
 “Offer” to withhold payment until correct information is
submitted and validated
 Near final bulk TIN match in December
– Double Check record validity
– Validate EIN vs. SSN number format
– Review for appropriate box types (rent, medical)
– Reminder: Box 14 Gross Proceeds paid to an attorney is for
legal settlements only. Legal Services are recorded under
Box 7 non-employee compensation
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Why Tin Match

Requirement for Payer To Secure a TIN
Initial solicitation - for all payees, you must make the initial solicitation when
the payee opens an account or when the transaction occurs using Form W-9
to request the taxpayer identification number.
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The CP2100 or CP2100A Notice
CP2100 and CP2100A notices are notices that inform a payer that he or she
may be responsible for backup withholding. This may be due to missing or
potentially incorrect taxpayer identification numbers identified during the
processing of Form 1099 information returns. It is accompanied by a listing of
missing, incorrect, and/or not currently issued payee TIN. Large volume filers
(250 or more erroneous documents) receive the CP2100 notice, while all other
filers receive the CP2100A notice.
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Payers face potential fines of $50 per each 1099 filing with a missing or invalid
TIN
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"B" Notice
If the IRS sends you a "B" notice indicating an incorrect payee TIN, you are
required to backup withhold28% from a payee no later than 30 days after
receipt. Backup withholding until the payee furnishes a TIN and certifies that it
is correct.
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IRS Tin Matching
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Various 3rd parties will submit on your behalf (~$135 for up to 100,000 records)
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Free through IRS e-services
– Program Summary
http://www.irs.gov/govt/tribes/article/0,,id=131207,00.html
– TIN Matching tutorial
https://la2.www4.irs.gov/PeopleBooks/CRMPROD/Training/3pdev/3ptin/tinbulk1.htm
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Required IRS e-services Personal Registration Information
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Legal name (verified with IRS & SSA records)
Social Security Number (verified with SSA records)
Date of birth (verified with SSA records)
Telephone number , E-mail address
Adjusted Gross Income (AGI) from either your current year or prior year filed tax
return (verified from IRS records)
Home mailing address (verified from IRS records). If you have moved since you last
transacted with the IRS, please update your information when registering.
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TIN Matching
The TIN Matching e-services allow “authorized payers” the opportunity to
match 1099 payee information against IRS records prior to filing information
returns. An authorized payer is one who has filed information returns with the
IRS in at least one of the two past tax years.
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Interactive TIN Matching will accept up to 25 payee TIN/Name combinations
on-screen
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Bulk TIN Matching will allow up to 100,000 payee TIN/Name combinations to
be matched via a text file submission.
Both programs will:
 Match the payee with W-9 name and TIN with IRS records;
 Decrease backup withholding and penalty notices;
 Reduce the error rate in TIN validation.
The TIN Matching system is accessible 24 hours a day, 7 days a week.
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TIN Matching Results
Tin1
Name 1
Tin2
Tin3
Name 2
Name 3
Tin4
Name 4
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The only TIN Match solution built specifically for Dynamics
GP…
OVERVIEW
The Validator1099 automates the process of validating TIN’s for
expedited and accurate 1099 processing.
Automatically perform a three way comparison between GP
vendor data and current government/IRS data.
Automatically identify whether or not vendors provided erroneous
TIN’s, false names, bad addresses or has relocated, changed
names or started-up under a new TIN.
Catch the issues early and minimize, if not eliminate, your risk in
reporting bad information to the government.
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The only TIN Match solution built specifically for Dynamics
GP…
BENEFITS
PRICING
Automated TIN Matching
Eliminate errors w/ 1099 reporting
Stop waiting months to know if the TIN’s filed
against were accurate
Stop wasting time manually tracking down
inaccurate or erroneous details
Stop paying fines to the government for
incorrect 1099 data
Confidence that 1099’s are filed w/
accurate data
Customers must subscribe to the US Government webbased TIN Match Service
Includes the first year's enhancement and support
plan, renewals are based on 20% of current retail price.
Includes 1 hour of service for installation, configuration,
testing and training
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3 Methods for 1099 Reporting
1. Native Dynamics GP Printing & manual filing
2. Greenshades –GP integrated software with
service bureau offering
3. 1099Pro – stand-alone software with service
bureau offering
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Native Dynamics GP 1099 Process
 Allows you to print 1099s for recipients
 Does not generate the Federal summary report, it
has to be manually created, it isn’t created in
GP….
 Must manage filing or efiling process on your own
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Printing 1099
To Print: Tools-> Routines -> Purchasing -> Print 1099
Enter your Company
information to be printed
You can print all Vendors
or enter a range
Print option for printing an
alignment only form
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Edit 1099 Form
If the form alignment
does not match your
forms you will need to
print to screen and edit
in report writer. From
the screen shot of the
alignment form Click
‘Modify’
Once changes are
made File->GP will
return you to GP
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Look for changes in forms with GP
software updates
For the 2010 year end, an updated 1099-INT form was released
introducing a new box 10, and changing the positioning of boxes
8/9. Such changes are typical each year, so be sure to refer to Year
End updates to ensure your program is up to date:
Sample Links:
GP2010 Year End Update
https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye20
10.htm?printpage=false&stext=2010 1099-INT
GP10 Year End Update
https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye10
.htm?printpage=false&stext=2010 1099-INT
GP9 Year End Update
https://mbs.microsoft.com/customersource/downloads/taxupdates/usgpye9.
htm?printpage=false&stext=2010 1099-INT
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Greenshades
http://www.greenshades.com
 An integrated GP Module for W2 and 1099 printing and efiling
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Year End Forms Printing
 Prints recipient copies of Federal W-2 and Federal 1099s
directly to Blank Paper
 Perforated Paper and Envelopes available
 Print all forms, single form, or range of forms
– www.downloadmyform.com
 Search information on forms to print
 Secure administrator controls over all functionality
 Single source management of forms distribution, corrections
and changes
 Full reporting functionality including:
– Employee requested changes
– Print history
– Electronic filing confirmations
– Totals by company, state, dept or many more
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Administrator Control Screen
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Forms Editing
• Edit Form Information in Visual Forms Viewer
• Error Checking and Auto-Summing Fields
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Recipient Distribution
 Offer electronic reprints available directly from a recipients
home/office computer
 Print, Edit, and Re-issue easily
 Perforated Paper and Envelopes available
 Mail Service
– Printing, stuffing, and mailing
– Includes postage for as low as $1.05 per form
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Employee Access Screen
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Cost Comparison Greenshades & 1099Pro
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1099Pro
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http://www.1099pro.com
Stand-alone software alternative
Allows you to print on plain paper
Turnkey Service Bureau offering
Web presentment
SAS 70 certified
(if you have SOX/IT/Audit requirements)
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1099Pro Import Template
(tab delimited files from Excel)
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Rcp TIN
Last Name/Company
First Name
Name Line 2
Address Type
Address Deliv/Street
Address Apt/Suite
City
State
Zip
Country
Rcp Account
2nd TIN notice
Box 1 amount
Box 2 amount
Box 3 amount
Box 4 amount
Box 5 amount
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Box 6 amount
Box 7 amount
Box 8 amount
Box 9 checkbox
Box 10 amount
Box 13 amount
Box 14 amount
Box 15a amount
Box 15b amount
Box 16 amount
Box 17 ID number
Box 17 state
Box 18 amount
Opt Rcp Text Line 1
Opt Rcp Text Line 2
Form Category
Form Source
Tax State
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1099Pro Software Interface
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1099Pro form edit screen
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Q&A
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Dynamics GP enhancement requests
https://connect.microsoft.com/
 Submit your feedback
directly via the
connect URL (left) or
from the Communities
Portal, Resources >
Product Suggestions
1. Add Federal Summary
Report to support 941
filings
2. Explore eFiling
possibility
3. Other?
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Thanks for joining us!
 Please fill out your
evaluation
 CPE credit is
available for GPUG
Summit 2011
 Follow-up
questions?
 See you in Houston
at Convergence
2012 next March
 See you in Seattle
for Summit 2012
 Browse out to
www.gpug.com for
more information
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Feel Free to Contact Us!
Zubin Gidwani
Dynamic Budgets
[email protected]
720.515.1565
Mike McDowell
Sta-Home Health & Hospice
[email protected]
GPUG Summit 2011– Las Vegas
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