1099 Forms

Because most carriers are independent contractors, they submit 1099 forms to the federal government instead of W2 forms. The 1099-MISC (Miscellaneous Income) form shows all account income except interest income. Interest is reported on a separate form, the 1099-INT (Interest Income). Use the 1099 Forms option to:

• Export 1099 information in a standard file (cm1099misc.d or cm1099int.d) that can be submitted to the US government.

• Export 1099 information to a separate report file which can be used to create the forms in a separate third party application. Circulation does not generate the forms directly.

Notes:

• A Business Rule, Which address for an account should be used when processing 1099s?, determines whether the delivery carrier’s address (account address) or the bill-to account address (billing address) is exported with the 1099 form information.

• Youth income (indicated by the Age Group in Account setup) is reported in Box 3 of the 1099-MISC form.

• Information included in Box 7 or Box 9 of the 1099-MISC form will depend on how charges and credits are defined in Charge/Credit Code Setup:

  • Box 7. Charge codes defined with “y” in Include In Payments (see Charge/Credit Code in the Setup Manual) will be included in Box 7 of the 1099-MISC form. These codes are generally allied to office pay charges and credits.

  • Box 9. Charge codes defined with “y” in Include In Resale Value will be included in Box 9 of the 1099-MISC form. These codes are generally allied to carrier collect charges and credits.

• 1099 information will be exported for accounts that fulfill the specified criteria and for whom a social security number is defined.

• 1099 Forms can be run multiple times for the same date. These processes do not create any data; they only export existing data.

To print either form with this option:

• Select 1099 Forms from the Account menu.

  
• Click Add and complete the following fields.

  Field	Type	What to enter
  COMPANY	setup	Enter the company for which to print 1099s.
  FEDERAL ID NUMBER	open (11)	Enter the payer’s (i.e., the publication’s) federal tax ID number.
  START DATE END DATE	date	Enter the date range for which you want produce the forms.
  DATE TYPE	predefined	Indicate how charges should be selected for the 1099s—based on charge date or bill date. If you select “charge date,” charges will be selected based on the date of the charge. If you select “bill date,” all charges billed by billing runs that were closed within the date range entered will be selected.
  FORM TYPE	predefined	Indicate whether you want to print Misc Income forms (1099-MISC) or Interest Income forms (1099-INT).
  STATE NUMBER	integer (11)	If you are printing Miscellaneous Income forms, enter the payer’s state number.
  COMPANY BIN	decimal (8)	Enter the company BIN (state of Oregon only). When the company address is in Oregon and an Oregon company BIN is entered here, then the company BIN, social security number, state identifier of “OR,” and state income will be added to the special data entries area.
  COMPENSATION MINIMUM*	decimal (10)	If you are printing Miscellaneous Income forms, enter the minimum compensation required in order to print a 1099-MISC. Forms will not be printed for payees (carriers) who earn less than this amount. If you do not use Box 7 (Nonemployee compensation), enter “99,999,999” in this field. Note: Youth compensation will be printed in Box 3 of the1099-MISC form. (Carriers are defined as “youth” or “adult” in the Age Group field in Account setup.)
  INTEREST MINIMUM	decimal (10)	If you are printing Interest Income forms, enter the minimum amount of interest income an account needs in order to print a 1099-INT.
  INTEREST CODE	setup	Enter the charge code used for interest. All interest must have the same code. This code will print in box 1.
  SAVINGS BOND INTEREST CODE	setup	If your carriers have US savings bonds, enter the savings bond charge code here. This code will be printed in Box 3 of the 1099-INT form.
  FILE FORMAT	setup	Select the file format to use to export 1099 information for reporting purposes. The exported file can be imported into a third party software program to create the forms. It can also be imported into your AP system. Only file formats defined in File Map with a usage of “1099 Export” or “1099FormsExport” can be selected. See Appendix B for a list of the available elements.
  FILE NAME	open (30)	Specify the file name for the report export file, or keep the default defined in File Map setup. The file will be exported to the /dti/exchange/cm directory.
  FILE OPTION	predefined	Indicate whether to append or replace the existing report export file, if one exists with the same file name.
  CREATE TAPE	yes/no	Specify whether to export a file of 1099 records for the U.S. government. If you select this checkbox, a separate file will be output goes to /dti/exchange/cm directory in the correct US government format. The file name will be “cm1099misc.d” or “cm1099int.d,” depending on whether Form Type is “Misc” or “Interest.” See Appendix B for the file format. A vendor file will also be exported (in the same format at the AP interface vendor file). The following fields will open only if this checkbox is selected.
  PRODUCTION FILE	yes/no	If Create Tape is flagged, indicate whether you are exporting a production file (as opposed to a test file). The test indicator field in the cm1099.d file will be based on this.
  TRANSMITTER CODE	open (5)	If Create Tape is flagged, enter the transmitter code assigned by the U.S. Internal Revenue Service. This will be exported to the cm1099.d file.
  CONTACT NAME, CONTACT PHONE, CONTACT EMAIL	open (40) open (10) open (35)	If Create Tape is flagged, enter a contact name, phone number and (optionally) e-mail. This information will be included in the cm1099.d file.

• Click OK and then Continue to export the form information. A report will display, but it will be blank.