BQE CORE has updated its reporting feature to support the IRS forms 1099-MISC, 1099-NEC, and 1096 reports for the 2024 tax year. By following the suggested guidelines, you can ensure that your 1099 and 1096 forms are set up and generated accurately and comply with the current IRS requirements.
Step 1: Verify Vendor Type
CORE automatically formats each vendor’s Tax Identification Number (TIN) based on the vendor type, ensuring it is correctly reported on the forms. This can be done on Vendors > General > Dates & Hours screen.
- Open the Vendors screen from the side menu > Contacts and select the relevant vendor profile on the grid.
Note: If the vendor’s TIN is an SSN, make sure to select Contract Employee as the vendor type. If the vendor’s TIN is an EIN, make sure to select Vendor or Outside Consultant as the vendor type. - In the detail view, go to the General > Dates & Hours tab and make sure the vendor's 9-digit Tax ID number (TIN) is entered in the Tax ID Number field.
Note: Checking Track payments for 1099 option allows you to identify the vendors that need the 1099/1096 forms to report the payments made to them.
Note: Formatting of the Tax ID Number here is dependent on the Settings > Display & Formatting options in CORE. The TIN formatting on the 1099 form is dependent on the vendor type.
Step 2: Map Chart of Accounts to Form Fields
To ensure that the correct amounts are reported on the 1099 forms, you must map the appropriate accounts from your Chart of Accounts to the relevant IRS categories. This ensures that the amounts are correctly assigned to the right sections of the forms. The applicable accounts are typically the expense accounts related to the 1099 vendors.
- Go to Accounting > Chart of Accounts and select the relevant account for which you need to set the IRS Form 1099 Category field to the corresponding categories for 1099-MISC and 1099-NEC (Non-Employee Compensation). On its General tab, the IRS Form 1099 Category field defaults to being blank. If you leave it blank or choose Excluded, payments associated with the G/L account will not be included in 1099/1096 reporting.
Step 3: Generate the Reports
When you have mapped the accounts (Chart of Accounts) and verified the vendor information in CORE, you can now generate the forms and prepare them for submission to the IRS.
- To view and print reports, open Report Center from the side menu > Reports.
- On the Select Template screen, choose Accounting or Tax area from the Templates list and then IRS Forms > 1099-MISC or 1099-NEC from the Templates list.
- Then click Configure Report on the top-right.
- On the Configure Report screen, select the appropriate filters and display options for each form. Then click Run.
- Enter Year: The relevant tax year.
- Threshold Amount: Limits reporting to vendors that received payments of at least this amount (the current IRS guidance is $600).
- Show Vendors: Select 1099 Only to only print 1099s for vendors for which the Track payments for 1099 option is selected.
The report is displayed in the viewer on another tab or window.
- Similarly, select 1096 - 2024 report from the Templates list and click Configure Report as before.
- Under Set Filters, choose a form type from the Category. You can select between 1099-MISC and 1099-NEC categories. By default, NEC is selected.
- Click Run.
Step 4: Print the Forms - Load the appropriate pre-printed forms into a printer:
- For 1099-MISC: Ensure you are using pre-printed 1099-MISC forms that support two vendors per page. Generate the 1099-MISC report, and ensure it is set to print on 8.5 x 11-inch form with the correct layout (2 vendors per page).
- For 1099-NEC: Ensure you are using pre-printed 1099-NEC forms that support 3 vendors per page. Generate the 1099-NEC report, and ensure it is set to print on 8.5 x 11-inch form with the correct layout (3 vendors per page).
- For 1096: Ensure you are selecting the correct type (NEC or MISC) on the form. Use the toggle to select between 1099-MISC and 1099-NEC categories. The default option is NEC.
Note: When printing these forms, ensure your printer settings are configured as follows: - Set the Paper Size to 8.5" x 11" (Letter size).
- Choose the Orientation as Portrait.
- Set the Fit option to Actual Size.
- To verify box calculations, ensure the number of forms generated matches the number of forms listed in Box 3. Also, make sure that the sum of amounts reported for each form category matches the total amount listed in Box 5.
Note: If 1099-NEC is selected, Box 71 will be checked, and the total NEC forms and amount will be calculated and if 1099-MISC is selected, Box 95 will be checked, and the total MISC forms and amount will be calculated.