Steps to Set Up
a New Vendor as a 1099 VendorA 1099 vendor is a vendor to whom a 1099 form is issued at the end of the calendar year. The Internal Revenue Service requires that 1099 forms be issued to unincorporated vendors (such as independent contractors and landlords) who have provided purchased services or goods of $2,000 or more during the calendar year, and also to attorneys for fees of $2,000 or more (reported in Box 1 on the 1099-NEC form) or for gross proceeds paid to attorneys of $600 or more (reported in Box 10 on the 1099-MISC form).
If a vendor is set up as a 1099 vendor, the School Accounting System will track the 1099 vendor total and provide a listing of all 1099 vendors meeting the criteria at the end of the calendar year. Then during the end of calendar year process, the 1099-MISC and 1099-NEC forms can be printed, and the 1099 information submitted to the IRS.