Submitting 1099s Electronically to IRS

Tip:  Be sure the steps for generating, verifying, and printing the 1099 forms, along with completing the fields on the General screen (tab) within the Vendor 1099s option, have been completed prior to submitting the 1099 forms to the Internal Revenue Service (IRS); refer to Steps 2-10 on the Accounts Payable End of Calendar Year Checklist.

• 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 submit the 1099 forms.

• 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:  The system checks the 1099s for common errors, and if there are errors found, a screen will appear listing the errors; if applicable, correct the errors at this time.  If a vendor has a negative 1099 total, an error message will appear in the status bar stating there are negative 1099s; the negative 1099s must be resolved at this time.  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 Submit Electronic File to IRS tab.

• Enter the minimum 1099 accumulation amount for which 1099-NEC or 1099-MISC forms to include in the submission 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.

• The Participate in Combined Federal/State Filing Program field is only enabled for organizations in Idaho, Missouri, Nebraska, or North Dakota, and stipulates whether 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.  If your organization does participate in the program, select the Participate in Combined Federal/State Filing Program field in order to have the IRS forward your 1099 information to your state.  A checkmark will appear in the box if the field is selected.

Note:  Different states have different requirements for participating in the Combined Federal/State Filing Program, as some states require prior approval to participate and/or notification of participation; contact your state department for further details.  Keep in mind, no prior approval is needed from the IRS since the School Accounting System has a direct connection to the IRS's application; as part of the application-to-application connection, the testing and approval process has already been completed with the IRS by Software Unlimited, Inc.

Tip:  The following states partake in the Combined Federal/State Filing Program:  Idaho, Kansas, Missouri, Nebraska, and North Dakota.  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.

• If the Participate in Combined Federal/State Filing Program field is selected, the State to Report field will automatically be completed with the appropriate state abbreviation for your organization for which state's information to include, and the field cannot be changed.

• The State ID Number field is enabled if the Participate in Combined Federal/State Filing Program field is selected and ID or NE is specified in the State to Report 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 each vendor displays, including the information in the various boxes and whether the 1099 has already been submitted to the IRS.  Specify the vendors for which to include on the submission 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.

Note:  If applicable, the vendors with 1099s for the particular calendar year who have previously been submitted will display with a checkmark in the Submitted to IRS field (column) and cannot be selected; if needed, complete the steps to submit corrected 1099s electronically to the IRS for those vendors.

Steps to Submit Corrected 1099s Electronically to IRS

• Click the Save button.

• To check the 1099s for common errors, click the Validate 1099s button located on the bottom of the screen.  If there are errors, a screen will appear listing the errors; if applicable, correct the errors at this time.  Otherwise, if there are not any errors found, a message will appear; click OK.

• Click the Submit Electronic File to IRS button to submit the 1099 information returns (the 1099-NEC and 1099-MISC forms) to the IRS.

Note:  After clicking the button, the system checks the 1099s for errors before transmitting the information to the IRS.  If there are errors, a screen will appear listing the errors; the errors must be resolved before the information can be submitted.  If applicable, fix the errors and then repeat the steps above in order to submit the information.

Tip:  As required by the IRS, the amounts are rounded to whole numbers during the submission.

• If desired, click the IRS Submissions tab to see the information included in the submission.

Note:  Only the submissions for the selected calendar year appear in the IRS Submissions List.

• Close the Vendor 1099s screen.

• The IRS will process the submission, and once the results are ready, an alert will appear on the main Accounts Payable screen.  See below for examples of the alerts that may appear after the submission has been processed.  (Tip:  The YYYY will be replaced with the calendar year for which the forms were submitted.)

Note:  The processing time for the submission typically takes several minutes; if an alert for the submission does not appear after one week, contact Customer Support for assistance.  In order to see a new alert, the Accounts Payable screen must be refreshed by closing the screen and then re-opening it, or clicking the Refresh Screen icon in the lower right-hand corner of the Accounts Payable screen.

• YYYY: Submitted 1099-MISC Forms Accepted by IRS and YYYY: Submitted 1099-NEC Forms Accepted by IRS - indicate the submission was processed successfully without any errors.  To view the details for the accepted submission, click the alert to view the IRS Submissions screen within the Vendor 1099s option.  The submission appears in the IRS Submissions List with Accepted as the Submission Status, 1099-MISC or 1099-NEC as the Form Type, No Errors as the IRS Return Error Information, and a File ID.  No further action is needed.  The alert will no longer display after closing the Vendor 1099s screen and refreshing the Accounts Payable screen, or after 30 days if either the alert or the Vendor 1099s option is not selected.

• YYYY: Submitted 1099-MISC Forms Need Corrections and YYYY: Submitted 1099-NEC Forms Need Corrections - indicate there were errors found with the submission and corrections need to be submitted.  To view the details for the submission, click the alert to view the IRS Submissions screen within the Vendor 1099s option.  The submission appears in the IRS Submissions List as one of the following:  1) Accepted with Errors as the Submission Status, 1099-MISC or 1099-NEC as the Form Type, and a File ID; or 2) Rejected as the Submission Status, 1099-MISC or 1099-NEC as the Form Type, Errors Detected-Corrections Needed as the IRS Return Error Information, and a File ID.  Click on the submission containing the errors and then all the 1099s included in the submission appear in the 1099s to Resubmit List; for the 1099s with errors, a description of the error displays in the Error Message field (column).  Make the appropriate changes to resolve the errors, and then complete the steps to submit corrected 1099s electronically to IRS.  The alert will no longer display after submitting a corrected file and refreshing the Accounts Payable screen, or after 90 days if a corrected file is not resubmitted.

Steps to Submit Corrected 1099s Electronically to IRS

• YYYY: Transmission Error with 1099 Forms - indicates there were issues connecting to the Internal Revenue Service site and the file was not successfully transmitted.  To view the details for the submission and resubmit the file, click the alert to view the IRS Submissions screen within the Vendor 1099s option.  Click on the appropriate submission (the submission will display with Transmission Error-Try Again as the Submission Status in the IRS Submissions List), and then click the Submit Electronic File to IRS button.  The alert will no longer display after resubmitting the file and refreshing the Accounts Payable screen, or after 90 days if the file is not resubmitted.

Tip:  If desired, view the tutorial below demonstrating submitting the 1099s electronically to the IRS.  In order to view the tutorial, you must have an active Internet connection, along with a sound card and speakers installed on your computer.

Submitting 1099s Electronically to IRS Tutorial