Providing correct tax information by updating 1099 information
A common problem arises at year end in the United States with vendors that were not properly set up as 1099 vendors. 1099 are required to be sent a 1099 tax form from the company. The types of transactions that can require a 1099 include rent, legal payments, and contract labor among others. The requirement is broad enough that most vendors who are not incorporated (proprietors, partnerships, and so on) may be due a 1099 if they are paid more than $600 in a calendar year.
The specifics of 1099 requirements often mean that vendors are incorrectly set up in Dynamics GP and the amounts required for tax reporting on 1099 forms were not collected for that vendor in Dynamics GP. Dynamics GP 2016 has additional functionality to assist with this: a 1099 utility.
The specifics of figuring out what should be on a vendor's 1099 form are beyond the scope of this recipe. For this recipe, let's look at how to get 1099 information...
