IRS forms 1099-MISC, 1099-NEC and 1096 reports are crucial for businesses to report payments and other tax-related details to the Internal Revenue Service (IRS). BQE CORE has updated its reporting feature to support the IRS forms 1099-MISC, 1099-NEC, and 1096 reports for the 2024 tax year.
The Chart of Accounts in CORE supports the ability to associate individual G/L accounts with the various 1099-NEC/MISC categories. By assigning the relevant 1099 category to a G/L account, CORE tracks payments related to these accounts for 1099/1096 reporting. By default, the Chart of Accounts will not map to any IRS 1099 category.
Key Forms and Reports
Form 1099-MISC: The 1099-MISC report allows you to map the IRS Form 1099 Category field on accounts in the Chart of Accounts screen to relevant 1099-MISC categories (such as Rents, Royalties, and Other Income). This ensures that amounts are correctly reported on the IRS form. The report is designed to be printed on pre-printed 1099-MISC forms that support two vendors per page. The format for the Payer’s TIN and Recipient’s TIN vary depending on the type of vendor:
- Vendor/Outside Consultant: TIN will be the Company Tax ID or EIN, formatted as 99-9999999.
- Contract Employee: TIN will be the SSN, formatted as 999-99-9999.
Form 1099-NEC: The 1099-NEC report enables you to generate Non-Employee Compensation (NEC) reports, including amounts paid to independent contractors and non-employee service providers. It allows mapping of the appropriate accounts in the Chart of Accounts screen to the NEC category. The report is designed to be printed on pre-printed 1099-NEC forms that support three vendors per page. Similar to the 1099-MISC report, TIN formatting varies by vendor type:
- Vendor/Outside Consultant: TIN will be the Company Tax ID or EIN, formatted as 99-9999999.
- Contract Employee: TIN will be the SSN, formatted as 999-99-9999.
Form 1096: The 1096 report serves as a transmittal form for the 1099-MISC and 1099-NEC forms. It is used to summarize the total number of forms filed and total amount reported. This report allows you to toggle between 1099-MISC and 1099-NEC categories, automatically updating the total number of forms in Box 3 and the total amount in Box 5 based on the selected category. The form is designed to meet IRS specifications and includes required filer details, such as name, address, telephone number, and TIN, along with an indicator specifying whether the form being filed is for 1099-MISC or 1099-NEC. The toggle between NEC and MISC is set to NEC by default. When NEC is selected, Box 71 will be checked, and the report will count the number of 1099-NEC forms for Box 3 and calculate the sum of amounts in Box 5. If MISC is selected, Box 95 will be checked, and the report will count the number of 1099-MISC forms for Box 3 and the total amounts for Box 5.