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1.  Issuing a 1099-R for an A/P vendor

Posted 12 days ago
Good morning,

We have a couple of A/P vendors that we will need to issue a 1099-R at the end of the year. Does anyone know what option(s) I need to select in Vendor Maintenance > Options? When I select "Miscellaneous" and move to the next drop down I do not see an option for this.

Any assistance is greatly appreciated.

Regards,



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Edgar Manriquez
Assistant Controller
Schurz Communications, Inc.
Mishawaka IN
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2.  RE: Issuing a 1099-R for an A/P vendor

Posted 11 days ago
Edited by Thaddeus Suter 11 days ago
For two I would just fill out the 1099-Rs and 1096 manually and call it done.

But for others where they have many employees or retirees taking retirement plan distributions that require 1099-R here is how it is done:

1. You cannot do 1099-R in GP Payables but if you chose to make the payments out of payables that is fine. We do that for our retirees and the various retirement plan distributions to employees.  All are done by AP.

2. To produce the 1099-R you must use GP payroll even if you paid with AP.

3. Create a corresponding Employee Card to your Vendor Card. If you use PA these can be auto created from the Employee side.

4. Set up a Payroll Paycode Type Pension and assign it to each Employee Vendor and set it to Pay Period Type = Daily MISC. (Note: Tax withholding can be done on these type distributions!) if done in Payroll. Don't mark these on the paycode.

5. Create a special Payroll Check ID called PENSION or 1099R so you can "build" these payments separately from any other pay run. Mark it as Pension and Daily/Misc with the full year range. See screen shot below.

6. At the end of the year run a Smartlist from AP for your Retiree vendors to obtain their total plan distributions for the year 2017.

7. Update their Employee Payroll Paycode for Pensions to the total Amount they were paid for the year as vendors. This is not entered as a Payroll transaction. It is entered direct to their PayCode daily/misc.

8. Run your special year end payroll check build, calculate, print post using the ID created in step 5. Because you already paid the Employee/Vendors in AP watch your GL setups and which dummy checkbook you use as this is only a "catch up" payroll transaction to get payroll ready for 1099-Rs based on what occurred during the full year in AP.

9. Close your Payroll year normally  and print all docs including 1099-Rs



Edit: I you do not want/need the audit trail, you could also do the basic setups in Payroll and then manually edit the 1099-R amounts into the payroll 1099-R edit window.
I prefer the full audit trail.
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Thaddeus Suter
Retus, Inc
TX
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3.  RE: Issuing a 1099-R for an A/P vendor

Posted 9 days ago
Hi Thaddeus,

I really appreciate all the info. Given that it's only two of them I think I will pick door #1 as you suggest, but I will keep all the extra documentation provided as I'm sure it could come in handy at some point.

Best regards,

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Edgar Manriquez
Assistant Controller
Schurz Communications, Inc.
Mishawaka IN
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