This guide will help you use Aplos to prepare Form 1099s for vendors at the end of the year and accurately file this IRS-required document. Aplos offers:
- Quick setup for the vendors and account categories you’ll need to monitor for 1099-eligible transactions
- A pre-formatted report that checks for the required threshold of $600 per year
- Easy preparation of IRS 1099 forms from your saved report
| January Notice: At the start of each year, the IRS releases updated 1099 forms. As a result, there may be a delay in processing and distributing the updated forms for the new year. |
What Is a Form 1099 and Form 1096?
Form 1099 is a required IRS report that discloses the amount paid to a contractor or vendor for services if that amount exceeds $600 in a year. All organizations are required to complete them, regardless of tax-exempt status. There are a variety of 1099 income types. The most commonly used forms are the 1099-MISC and 1099-NEC, which are the two forms supported in Aplos. There is a formatting difference between these two forms to keep in mind. The MISC form will only have two vendors per page where as the NEC form will have three vendors per page.
Organizations are required to mail their 1099s to their vendors and a 1096 to the IRS by January 31 each year. Find more information on the IRS 1099 requirements for both 1099-MISC and 1099 NEC. (Use Form 1099-NEC to report non-employee compensation).
Note: E-filing is now required by the IRS if you file 10 or more returns. File your 1099s for free with IRIS, the IRS Information Returns Intake System. Find out more on the IRS website.
Track 1099 Vendors and Expenses in Aplos
In Aplos, you use 1099 Tags to help you track payments made to your 1099-eligible Vendors. This makes it easy to prepare your return at the end of the year.
To track 1099s in Aplos, you will want to follow these steps:
- Enable 1099 Tags
- Map eligible expense accounts to the proper 1099 categories
- Add vendor contacts into the 1099 Vendor contact list
Click here to see an in depth guide on these steps in Aplos.
Prepare a 1099-MISC, 1099-NEC, and a 1096
Your 1099s and 1096s must be mailed each year by January 31 and use an IRS-compliant form. Here are the basic steps you need to prepare your forms in Aplos:
- Order your IRS forms (1099-MISC and 1099-NEC)
- Review your 1099 report
- Print on the 1099s and 1096 forms
Click here to view the details of each step to preparing 1099s
How to Generate 1099s If You Switch to Aplos Midyear
If you switched to Aplos mid-calendar year without bringing in the full year’s worth of transactions, your 1099s will be incomplete in Aplos. You will need to backfill those vendor transactions to produce a full 1099 for the calendar year.
Click here to see the multi-step process. and will require a little setup before getting started.
How to Troubleshoot 1099s
Having trouble generating a 1099 for one of your vendors, or seeing incorrect amounts listed on the 1099 report?
Click here to see a couple of suggestions as to what could be causing these issues.
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