Common 1099 processing questions

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Change to CS Support service hours

Our Support department is closed on Friday, April 28th for a company event. However, limited Accounting CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline for quarterly payroll tax forms.

Links to our most popular payroll tax processing topics are available in the Alerts and notices section on the right side of most pages.

The information below lists some frequently asked questions about setting up and verifying Form 1099 in Accounting CS, along with the appropriate troubleshooting steps for each scenario.

Setting up and editing Form 1099 for recipients

You must be licensed for Accounting CS Payroll Compliance to process 1099 forms. Contact our Customer Service team for more information.

There are two ways to remove the client copy image from payroll tax forms.

Remove on a per client basis

Within Edit Payroll Tax Forms

  1. Go to Actions > Edit Payroll Tax Forms.
  2. Select the form type, year, etc.
  3. Choose File > Process Client forms.
  4. Select the forms you need to print.
  5. Click on Process Selected button.
  6. Select Filing copy.
  7. Click OK.

Within Process Payroll Tax Forms

  1. Go to Actions > Process Payroll Tax Forms.
  2. Select the form type, year, etc.
  3. Select Client and forms you need to print.
  4. Click on Process Selected button.
  5. Select Filing copy.
  6. Click OK.
Remove globally for all client payroll tax forms

This process will disable the application's default behavior of printing a watermark on all client copy forms (forms for which the Client copy checkbox is marked in the Print dialog).

  1. Go to Preferences tab of Setup > Firm Information > Firm.
  2. In the Payroll Tax Forms section select Disable watermark on client copy forms.
  3. Click OK.

The client’s copy is always displayed when previewing a payroll tax form. Selecting to disable watermark on client copy form will remove the CLIENT COPY watermark from the preview screen.

For live 1099 processing, follow these steps:

  1. Choose Actions > Enter Transactions.
  2. Highlight a transaction with a 1099 distribution.
  3. In the Transaction Detail section, click the Ellipsis button to the right of the distribution row.
  4. In the Form 1099 Details dialog, mark the 2nd IRS notification incorrect recipient TIN and/or the FATCA filing requirement checkboxes.

For after-the-fact 1099 processing without transactions entered in the application, follow these steps:

  1. Choose Actions > Edit Payroll Tax Forms.
  2. Filter for Form type: 1099, then 1099-MISC, and the appropriate year.
  3. Select Copy A from the Form drop-down menu.
  4. Click the Recipient Data tab and locate the vendor for whom you need to mark these checkboxes.
  5. Using the horizontal scroll bar, scroll all the way to the right.
  6. Mark the checkbox in either the 2nd TIN Not or the FATCA column, as appropriate.

For live 1099 processing, follow these steps:

  1. Choose Actions > Enter Transactions.
  2. Highlight a transaction with a 1099 distribution.
  3. In the Transaction Detail section, click the Ellipsis button to the right of the distribution row.
  4. In the Form 1099 Details dialog, enter the description, address, City, State, and Zip.
  5. Select the closing date in Date of closing drop down to populate Box 1.

For after-the-fact 1099 processing without transactions entered in the application, follow these steps:

  1. Choose Actions > Edit Payroll Tax Forms.
  2. Filter for Form type: 1099, then 1099-S, and the appropriate year.
  3. Select Copy A from the Form drop-down menu.
  4. Click the Recipient Data tab and locate the vendor for whom you need to mark these checkboxes.
  5. Using the horizontal scroll bar, scroll to the right.
  6. Enter the information into Box 3 Description, Box 3 Address, Box 3 City, Box 3, State, and Box 3 Zip.
  7. Enter the closing date in Box 1 Date of Closing.

There are two options that can cause the application to ignore 1099 printing thresholds. Use the following steps to verify that neither of these options are selected.

  1. Choose Setup > Vendors and then click the 1099 Properties tab.
  2. Clear the Always Print Form checkbox, if it is marked.
  3. If you enter transactions for this vendor, choose Actions > Enter Transactions.
  4. Highlight one of the transactions for this vendor in the list.
  5. Click the Ellipsis button next to the 1099 distribution to open the Form 1099 Details dialog.
  6. Clear the One 1099 per transaction checkbox.

Vendors must meet the following conditions for Accounting CS to print a 1099 form.

  • The vendor type selected in the Main tab of the Setup > Vendors screen must be 1099 Recipient.
  • At least one form and one box must be selected in the 1099 Properties tab on the Setup > Vendors screen.

Independent Contractors must meet the following conditions for Accounting CS to print a 1099 form.

  • The employee type selected in the Main tab of the Setup > Employees screen must be Independent Contractor.
  • If you will be entering transactions for this employee, a payroll item with the special type Nonemployee compensation must be active on the employee.

If amounts from the transactions you entered are not displaying on the Form 1099, verify the following settings.

  1. Choose Actions > Enter Transactions and highlight a transaction for the vendor.
  2. Verify either that the Handwritten / Check # checkbox is marked, or that the status of the transaction (located above the Add button) is Printed.
  3. In the Transaction Detail section, click the Distributions tab.
  4. Verify that there is a 1099 form and box selected in the 1099 column.

See also: Setting up and processing form 1099 for recipients

  1. Choose File > Layout Designer, and then open the 1099 Forms folder and the folder for the year you are preparing 1099s for.
  2. Double-click the specific copy of the Form 1099 you want to mask the recipient EIN/SSN on.
  3. In the "RECIPIENT'S identification number" box, delete the [TaxForm.1099Recipient.EIN] variable.
  4. In the Design Tools frame, locate the [TaxForm.1099Recipient.EINMaskedWithAsterisksUpToLastFourDigits] or [TaxForm.1099Recipient.EINMAskedWithXsUpToLastFourDigits] variable.
  5. Click and drag the variable onto the tax form in the middle pane.
  6. Re-size and re-locate the variable as necessary.

Per the IRS general instructions for certain information returns, the account number may be a required field. Accounting CS populates this field automatically with a unique number for filing purposes.

If you wish to remove the account number from the 1099 form, use these steps:

  1. Choose File > Layout Designer and open the 1099 Forms and year folder.
  2. Double-click the form that you are processing to open it.
  3. Click the variable in the Account number box and then press the Delete key on your keyboard.
  4. Choose File > Save and then close the Layout Designer window.
  5. Preview or process the form and there will no longer be an account number displayed.

Processing Form 1099

  • There are no transactions for the vendor.

    Note: The Distributions tab on the Setup > Vendors screen sets default information for transactions you enter on the Enter Transactions screen for a particular vendor, but amounts entered on the Distributions tab do not flow to the Form 1099.

  • To populate Form 1099, you can either input transactions for the vendor on the Actions > Enter Transactions screen with 1099 distributions, or override the form manually on the Actions > Edit Payroll Tax Forms screen.
  • Printing thresholds are preventing the form from printing.

    If you are still seeing the message appear, check your printing thresholds in the following locations:

    • The Print Options button on the Actions > Process Payroll Tax Forms screen. Show me.
      1099 options on Process Payroll Tax Forms
      This is a global threshold setting.
    • The Additional Information button on the Payroll Taxes tab of the Setup > Clients screen. This threshold is a client level threshold and trumps the global threshold. Show me.
      1099 Additional Information on Setup > Clients
    • On the Actions > Enter Transactions screen, select a transaction with 1099 distributions, and then click the Ellipsis button. Show me.
      1099 options on a transaction's distributions to a 1099
      The threshold set here trumps both the global and client level thresholds.

    Note: A threshold of 0.00 indicates that there is no threshold set, and 1099s will print with any non-zero amount on them.

  • There are two options that override the printing thresholds set above.
    • The Always Print Form checkbox in the 1099 Properties tab of the Setup > Vendors screen.
    • The Ignore per item threshold overrides checkbox in the Print Options dialog accessed from the Actions > Process Payroll Tax Forms screen.
  1. Choose Setup > Vendors  and then click the 1099 Properties tab.
  2. Verify that the One Form per Transaction checkbox is not marked.
  3. Choose Actions > Enter Transactions and then highlight a transaction that has 1099 distributions.
  4. Click the Ellipsis button next to the 1099 distribution and verify that the One 1099 per transaction checkbox is not marked.

This typically happens when a vendor was previously set up to receive a 1099 but no longer does. Follow these steps to remove the 1099 settings for that vendor.

  1. Choose Setup > Vendors.
  2. On the Main tab, select 1099 Recipient from the Vendor type field.
  3. On the 1099 Properties tab, click the area to the left of the Form Selection field to highlight the whole row.
  4. Click the Red X button, or press the Delete key on your keyboard.
  5. Click Enter to save your changes.
  6. Click Edit to make the next changes.
  7. On the Main tab, change the Vendor type field back to the correct type.
  1. Choose File > Layout Designer.
  2. Expand the 1099 Forms folder and the folder for the processing year.
  3. Double-click the copy of the 1099 form that is not printing correctly.

    Note: To determine which layout corresponds to which copy of the 1099 form, see Accounting CS Payroll Year-End Processing FAQs (PDF).

  4. Choose Edit > Select All.
  5. Use the arrow keys on your keyboard to move the 1099 information so it is centered on the layout.
  6. Choose File > Save, and then close the Layout Designer.
  7. Process the 1099s again.
  1. Choose Actions > Edit Payroll Tax Forms.
  2. Filter for Form 1099 and then click Refresh.
  3. Select Copy A in the Form field, and then click the Recipient Data tab.
  4. Right-click in the grid area and choose Deselect all.
  5. Mark the checkbox for the recipient you need to re-print.
  6. Choose File > Process Client Forms.
  7. In the dialog, mark the checkbox for the copies you want to process for this recipient, and then click the Process Selected button.

Note: If the Always Print Form checkbox is marked on the Setup > Vendors screen on the 1099 Properties tab, a 1099 will print for that vendor regardless of any other settings.

Resolutions for problems creating the Internet file

The following are some solutions to error message that may display when you attempt to create the internet file.

  1. Choose Actions > Process Internet/Magnetic Files.
  2. Click the Transmitter Information button.
  3. In the Federal 1099 section, enter your 5-digit Transmitter Control Code provided by the IRS.
  1. Choose Actions > Process Internet/Magnetic Files.
  2. Click the Transmitter Information button.
  3. In the General section of the Transmitter Information dialog, select a staff member from the File Contact drop-down list.
  4. If there are no entries in the drop-down list, close the dialog and choose Setup > Firm Information > Staff.

    Note: If you have an Alternate Preparer Block license, choose Setup > Firm Information > Firm and complete the Alternate Firm and Alternate EIN/SSN fields on the Main tab.

  5. Select a staff member who is a payroll form preparer and then click the Edit button.
  6. In the Preparer Information section, verify that the Payroll form preparer checkbox is marked, and the PTIN and Third party designee PIN (if applicable) are entered.
  7. In the Phone and Fax Numbers section, verify that there is a phone number entered in the Business field, and that there is an email address entered in the Email field. Add any missing information.
  8. Make the same changes for any other staff members that should be included in the list of payroll form preparers.
  9. Press Enter to save your changes.
  10. Choose Actions > Process Internet/Magnetic Files and then click the Transmitter Information button.
  11. In the General section, select the appropriate staff name, which should now display in the drop-down list.

There are a few possible answers to this question. See the Nothing appears in the Process Internet/Magnetic Files screen topic for detailed information.

Although Accounting CS allows you to maximize your efficiency by batch processing many clients at the same time, with the 2016.4.0 update there is an easy way to select which clients to process Internet/Magnetic files for.

  1. Perform the steps in the Processing 1099 forms for all recipients of one or more clients section in the Printing 1099 forms topic
  2. Choose Actions > Process Internet/Magnetic Files, and then click the plus sign next to Federal 1099-MISC Copy A.
  3. Mark the checkboxes for the client you want to create a single file for and then click Create Files.

Accounting CS will create a folder in the location specified on the Process Internet/Magnetic Files screen for each time you perform these steps. The folder will be named "Batch File X" where X is the next batch number available.

Related topic

Workflow - Processing 1099 forms

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