Creating the 1099 Electronic File

Note: The school district must have prior approval from the Internal Revenue Service before submitting a 1099 file electronically via the Internet. To apply for approval, complete the Information Returns Transmitter Control Code application by November 1 at: https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire. (Tip: Those with an existing Transmitter Control Code that was issued prior to September 26, 2021, will need to complete and submit a new application prior to August 1, 2023; active Transmitter Control Codes issued prior to September 26, 2021, will automatically be added to your completed application.) Requests submitted after November 1 may not be processed in time, as 45 days are needed for processing.

Tip: Be sure the fields on the General screen (tab) within the Vendor 1099s option have been completed prior to creating the 1099 electronic file.

$image\btn_mini.gif$ Steps to Complete General Screen within Vendor 1099s

From the Accounts Payable screen, select the Government Reporting menu and then Vendor 1099s.
The 1099 Search screen will appear listing all the Calendar Year Ending Dates for which there is data. Double-click on the Calendar Year Ending Date for the desired calendar year for which to create the file.
A message may appear stating that there is a check with a check date after the date the 1099s were last generated; if the message appears, click Yes to continue regenerating the 1099s if needed, or click No to open the 1099s without regenerating.

Note: If the 1099s are regenerated, any changes manually made to the 1099s will be lost.

The Vendor 1099s screen will appear.

Note: If a vendor has a negative 1099 total, an error message will appear in the status bar stating there are negative 1099s; negative 1099s must be resolved before printing the 1099s or creating the electronic file. To determine the vendor(s) with the negative 1099 total, click both the 1099-NEC tab and the 1099-MISC tab to see if the error message displays for either set of forms, and if the error message appears, click the Find button on the applicable screen and review the Total Payments column.

Click the Create Electronic File tab.

Enter the name of the person who the IRS should contact with questions regarding the file submission in the Contact Name field. The name can be up to 40 characters long.

Enter the email address for the contact person in the Contact Email Address field. The email address can be up to 50 characters long and must follow the proper format of "username@example.com".
Enter the 5-digit alphanumeric transmitter control code assigned to your organization by the IRS in the Transmitter Control Code field. A transmitter control code must be obtained prior to submitting the 1099 information electronically via the Internet.
Enter the minimum 1099 accumulation amount for which 1099-NEC or 1099-MISC forms to include on the file in the Minimum to Report field. The amount can be up to 6 digits long (including the decimal point) and will be rounded to 2 decimal places by the system if capable. Typically, $600 will be entered in this field.

Note: The system will update the Vendor Selection List to display vendors with a 1099 accumulation for the applicable form type (1099-NEC or 1099-MISC) for the amount entered in this field and higher.

If applicable, select the Last Filing field if this is the last time your organization will be filing 1099s. A checkmark will appear in the box if the field is selected.
If applicable, select the Test File field if creating a test file to send to the IRS. A checkmark will appear in the box if the field is selected.
If applicable, select the Prior Year Data field if creating a file containing data for a prior tax year. A checkmark will appear in the box if the field is selected.
The Participate in Combined Federal/State Filing Program field is only enabled for organizations in Idaho, Missouri, Nebraska, or North Dakota. If your organization participates in the Combined Federal/State Filing Program, where the Federal Government automatically sends the 1099-MISC and 1099-NEC information to the State Government, select the Participate in Combined Federal/State Filing Program field. A checkmark will appear in the box if the field is selected.

Note: There are additional steps required for approval to participate in the Combined Federal/State Filing Program; refer to the Combined Federal/State Filing Program section of the IRS Publication 1220 for further details. Only the states of Idaho, Kansas, Missouri, Nebraska, and North Dakota partake in the Combined Federal/State Filing Program. Although Kansas partakes in the program, the state still requires a file to be submitted directly to them and so the option (the Participate in Combined Federal/State Filing Program field) is not applicable (is disabled) to organizations in Kansas.

Enter the appropriate type of file to create (Federal, State, or Combined Federal/State) in the File Type field, or click the down-arrow button to select the correct one. Enter Federal if creating the file to submit the 1099-NEC and 1099-MISC forms to the Internal Revenue Service. Enter State if creating the file to submit the 1099-NEC and 1099-MISC forms to the appropriate state department. Enter Combined Federal/State if creating the file to submit the 1099-MISC and 1099-NEC forms to the Internal Revenue Service and you participate in the Combined Federal/State Filing Program, where the Federal Government automatically sends the 1099-MISC and 1099-NEC information to the State Government.

Tip: Only the file types applicable for your state appear and are able to be entered into this field. For Illinois, Iowa, and Kansas organizations, Federal and State are available as the File Type. For Idaho, Missouri, Nebraska, and North Dakota organizations with the Participate in Combined Federal/State Filing Program field selected, Combined Federal/State will be selected by default as the File Type and cannot be changed. For Idaho, Missouri, Nebraska, and North Dakota organizations with the Participate in Combined Federal/State Filing Program field not selected, Federal and State are available as the File Type. For South Dakota and Wyoming organizations, Federal is available as the File Type.

If State or Combined Federal/State is specified in the File Type field, the State to Report field will automatically be completed with the appropriate state abbreviation for your organization for which state's information to include.

The State ID Number field is enabled if IA, ID, or NE is specified in the State to Report field. For Iowa organizations, enter your 9-digit or 12-digit state withholding permit number (without hyphens) in the State ID Number field. For Idaho organizations, enter your 9-digit state withholding account number (without hyphens) in the State ID Number field. For Nebraska organizations, enter the employer number assigned to your organization by the state (up to 9 digits) in the State ID Number field.

All vendors with a 1099 accumulation for the applicable form type (1099-NEC or 1099-MISC) equal to or greater than the amount entered in the Minimum to Report field appear in the Vendor Selection List on the bottom of the screen. The information for the various boxes appears for each vendor. Specify the vendors for which to include on the file by clicking the box for the Selected column to the left of the desired vendor. A checkmark will appear in the box if the vendor is selected. To select all the vendors listed on the screen, click the Select All button located above the Vendor Selection List. If desired, change the filters to modify the vendors displayed here. If needed, click the Clear All Selection button to remove all the filters (display all vendors) and unselect any previously selected vendors.

Click the Save button.
Click the Execute button to continue creating the file.
At the Create Report File screen, select the desired path (drive and folders) for the destination location and click the Save button. The system will default to the location that was last specified.

Note: Do not change the name of the file that will be created.

A message will appear in the status bar after the file was created.
If applicable, repeat these steps to build both the federal and state files for the 1099-NEC and 1099-MISC forms.

Note: For Idaho organizations only, if the 1099s include Idaho withholding and the file to submit to the state was created (State was specified in the File Type field and ID was specified in the State to Report field), the RV record will need to be built within the state's system and then manually appended within the file created from the School Accounting System.