1099 Information

Financial Edge NXT supports both 1099-MISC and 1099-NEC forms. You can access and file with Aatrix under Payables, Communications.

You create 1099-MISC forms to report income you paid to vendors during the calendar year. Amounts reported on 1099-MISC forms are taken from the check date for checks printed during that calendar year.

You create 1099-NEC forms to report non-employee compensation paid throughout the year.

On the vendor record, you mark the vendor as a 1099 vendor and enter default 1099 distribution information. You can also make 1099 adjustments under 1099 information.

On the invoices and credit memos, you track 1099 amounts and enter the 1099 box numbers and states where the amounts were earned.

Note: At tax reporting time, you can quickly determine which vendors require 1099 forms by creating a vendor 1099 Activity Report.

  1. If a vendor is a 1099 vendor, select Issue a 1099 statement when you add the vendor. You can also add 1099 information to an existing invoice record from 1099 information on the vendor record.

  2. Select Add another 1099 box to enter 1099 box numbers, the states in which the amounts were earned, and the amounts or percentages.

  3. Select Direct sales of $5000 or more to have Box 9 checked on printed 1099 forms. This box indicates the payer made direct sales of 5,000 or more.

  4. Select Box "2nd TIN not." checked to ensure the IRS does not send any further notices about this vendor.

  1. Select Add a 1099 box when you add the invoice. You can also add and edit 1099 information on an existing invoice under 1099 information.

  2. To add 1099 box information, select the 1099 box number from the drop-down menu.

  3. Select the state in which the amount was earned. A state entry is required for box number 16-State tax withheld.

  4. Enter the amount.

  5. Select Issue a 1099 statement if you want the vendor associated with this invoice to receive a 1099 statement.

  1. Select Add a 1099 distribution when you add the credit memo. You can also add and edit 1099 information on an existing credit memo under 1099 information.

  2. To add 1099 box information, select the 1099 box number from the drop-down menu.

  3. Select the state in which the amount was earned. A state entry is required for box number 16-State tax withheld.

  4. Enter the amount.

  5. Select Issue a 1099 statement if you want the vendor associated with this credit memo to receive a 1099 statement.

  1. Select Add 1099 adjustment under 1099 Information.

  2. Enter the date from the reporting calendar year.

  3. In the Amount field, enter a positive amount to increase the total, or negative amount to decrease the total.

    Tip: Use a minus sign to indicate a negative amount. For example, - $50. All negative amounts are displayed in parenthesis.

  4. Select the 1099 box number and state in which the amount was earned. A state entry is required for box number 16-State tax withheld.

  5. Select Save. All 1099 adjustment information appears under 1099 adjustments on vendor record.

In 2020, the U.S. Treasury Department and Internal Revenue Service released Form 1099-NEC to report non-employee compensation paid throughout the year. Non-employee compensation, or self-employment income, is pay from 1099 independent contractor jobs, such as freelance work.

Financial Edge NXT supports form 1099-NEC through Aatrix, allowing you to complete your 1099 tax filings directly in web view. To access 1099s in web view, go to the Payables, Communications, 1099 forms.

For more information, check out these 1099-NEC Frequently Asked Questions.