2013 Year End Procedure Notes Accounts Payable for Add-On Software 1099 Processing

Transcription

1 2013 Year End Procedure Notes Accounts Payable for Add-On Software 1099 Processing Please read entire document prior to attempting to process any 1099 s This document applies to all versions of Accounts Payable, Enhanced Resident Trust and Resident Trust except where indicated. See the 2013 Tax Forms Ordering document for information on ordering forms. Preparation: There are no changes for 1099 Information for the 2013 Calendar Year. Form 1099INT was modified from 3 forms per page to 2 forms per page for Electronic Parameters: If you are planning to file your 1099 s electronically, you will need to enter/update 1099 Electronic Parameters by selecting option #11 on the APR or DPR menu or by typing APPAHS from any menu. This program has two maintenance options relating to Electronic Filing. These options access the 1099 Payer and Transmitter parameter maintenance screens, where complete information defined in the IRS Publication 1220 must be maintained. Note: When the Electronic Filing option is activated on the APPAHS screen, the two maintenance options relating to Electronic Filing will override the Facility data and the Vendor Electronic Information (option T) data in Vendor Maintenance will be used for 1099 form printing. A 1099 Transmitter must be established using the company number that will be processing the 1099 s. A 1099 Payer must be established for every Accounts Payable and Resident Trust Company. The program APPAHS can be used for these purposes regardless if Accounts Payable is installed or not. The 1099 Payer parameters include a Combined Federal/State Filer option. When set to Y, a list of the states that you have received approval from must be entered. Note: Form Application for Filing Information Returns Electronically (FIRE) must be submitted to the IRS at least 45 days before the due date of the informational return. The IRS Electronic Filing System allows you to designate a Transmitter and then group the Payees (Accounts Payable Vendors and/or Resident Trust Depositors) within Payer Federal ID Number. This means that a single file containing all of your 1099 MISC and 1099 INT returns may be generated. Note: You must file your 1099 s by paper or electronic submission. See Attachment 1 of this Document for instructions on electronic submission. Check with your state regarding state filing. Vendor 1099 data may be reviewed by printing a 1099 Vendor Edit Listing. If it is not yet on your Accounts Payable Period End Menu it may be accessed by typing APD.AA (DPD.9A in Distributed Accounts Payable) at any time. Both the Dot Matrix and the Laser 1099 Print programs should also be on the above menu, however if not, the Standard Accounts Payable and Inter-Company Accounts Payable programs are named APR.JA and APRLJA respectively and the Distributed Accounts Payable programs are named DPR.JA and DPRLJA. With the exception of the files they access and the printer that they output to, they function identically. Dec Add-On Software Accounts Payable 1099 Procedure Notes 1 of 16

2 Vendor Edit Listing This report contains information pertinent to the year-end processes, such as if a 1099 will be generated, the amount and in which box the dollar amount will be reported. The Vendor Name and Address information will be found on the left side of the report. If the data in the Vendor 1099 Data Maintenance is set up, this information will be found on the right side of the report. Current Year: Enter the year for which you wish to print the edit listing. (Example 2013) Report Sequence: Select the sort order that you want the report to print. Indicate V for vendor order, A for Alpha order or S for Vendor Alternate Sequence order. Vendor Type: Select what vendors you want to display on this report. Indicate Y for 1099 Vendors only, Indicate N for Non-1099 Vendors or enter A to select all Vendors. Minimum Amount: Enter the minimum amount paid to any one vendor to qualify for a 1099 Summary/Detail: Enter S to print the listing to reflect Total payment amount for the current year or D to print the listing to reflect Detail payment amounts. Answer Yes print the report or No to stop the process. Dec Add-On Software Accounts Payable 1099 Procedure Notes 2 of 16

3 1099 Printing Note: The following instructions are for creating 1099-Misc. forms with the use of Laser printers. The instructions for printing these forms using a form feed printer (APR.JA) are the same with one exception. APR.JA does not allow for the use of vertical adjustment. Minimum Amount: Enter the minimum amount paid to any one Vendor to qualify for a 1099 Combine Vendors by Federal ID: Answering Y to this option will sort all Vendors by their Federal ID number within the Transmitters Federal ID number. Vendor payments in different companies with the same Federal ID will be combined. It is not required for electronic filing but it is recommended. The default is Y. Multi-Facility directories are accommodated. Prior Year Data: Asked only in AP programs. Current Year data is rolled to the Prior Year fields at year-end. If you failed to run this program before that took place you would be able to report that data by answering Y here. The default is N. Magnetic Media: Indicate Y if you wish to additionally output to the Magnetic/Electronic media work file or N if you are not submitting Magnetic/Electronic media. Payer Phone Number: The phone number to be printed in the Payer s box may be entered here. However if the Electronic Payer s phone is set up in the parameters it will be used (APPAHS) Printer Offset: The default is preprogrammed, but if your printer is different, the printing may be moved to the right by entering the number of spaces to offset. Report Sequence: Activated if the answer to Combine Vendors by Federal ID is No. Indicate N to print in Vendor Number order, Enter F to print in Federal ID number order or Enter A to print in the Vendors Alternate Sequence order. This option is bypassed if the Combine Vendors by Federal ID field is set to Y. When you have selected the Magnetic Media option and your system is configured for Resident Trust the following options are activated: Include Resident Trust: Indicate Y to Include Resident Trust returns on the Magnetic/Electronic output or N to not include. Combine Resident Trust: Indicate Y to combine Resident Trust returns or N to not combine them. Multi-Facility directories are accommodated. Dec Add-On Software Accounts Payable 1099 Procedure Notes 3 of 16

4 Restart: Select Y to restart the 1099 printing, select S to print a Single 1099 or select N to print all 1099 s. These options apply to printing hardcopy 1099 s only. Vendor#: Applicable only If Y to Restart or S for Single is selected above. Enter the Vendor number you wish to restart on or print a single 1099 for. Answer Yes to print the report or No to stop the process. If the option to Combine Vendors by Federal ID has been chosen, the following question appears on the screen: Is a listing of Vendors within Federal ID required?: Indicate Y if you wish to print a list. Indicate N if you wish to continue without printing the list. If Y is Entered above, the following screen will appear: Choose the format in which you wish the Listing to print by highlighting the line and pressing Enter. You may choose as many formats as you wish. Each will print after the number is entered. Press F4 when you are ready to exit this screen. Dec Add-On Software Accounts Payable 1099 Procedure Notes 4 of 16

5 Proceed with 1099 s now?: Indicate Yes or No. An opportunity to edit the Payer information is provided: Make any corrections and then answer Yes. Dec Add-On Software Accounts Payable 1099 Procedure Notes 5 of 16

6 An option to print the Vendor Number on the 1099 Form is provided: Print Vendor number in 1) Account Number Box, 2) Do not print: Press 1 if the Vendor Number is to appear in the box titled Account Number (optional) on the 1099 Form. Press 2 if you do not wish to print the Vendor Number on the form. An option to print a test pattern is displayed for both the 1099 Printing and 1099 Laser Printing options. The Vertical Adjustment option is only displayed on the 1099 Laser Printing option. Do you wish to print a test pattern? If you wish to Print a Test Pattern, answer Yes. After printing a test pattern, you will be able to determine if a vertical adjustment needs to be made. If a Vertical line print adjustment is needed, type in V and the screen below will appear. Dec Add-On Software Accounts Payable 1099 Procedure Notes 6 of 16

7 Type the number of lines to be adjusted at the prompt. The Test Pattern window will reappear. If you need to make another adjustment, type in V. You may make as many adjustments as are necessary by printing a test pattern, making the adjustment and then another test pattern. When the printing on the form is lined up correctly, answer Yes and the forms will start to print. If the Printer offset number (horizontal placement) needs to be adjusted you will need to return to the original 1099 Parameter Screen (APRLJA) and start over. Answer No to end this session so you can start again. You may print and or generate an output file as many times as is necessary without the loss of data. Continuing with the Electronic 1099 file creation: If you have indicated an electronic file is to be generated and one has been generated before, a message similar to the one below will appear: Tax file F:/usr/bbx/AON/ADATA/IRSTAX.001 exits. Initialize?: Answer Yes to continue. You will overwrite the previous data file that was created. Answer No if you want to end the session. An opportunity to edit the Transmitter information is provided: Dec Add-On Software Accounts Payable 1099 Procedure Notes 7 of 16

8 Answer No to make corrections. When all the information is correct, answer Yes. Payment Year: Enter the year in YYYY format for which you wish to report. (Example 2013) Test File Indicator: If you are preparing a Test file for submission to IRS answer Yes otherwise answer No. The default is No. Replacement Alpha Characters: Required for replacement files only. Enter the two alphanumeric characters, which appear immediately following your TCC number on the Media Tracking Slip (Form 9267). Original File Name: Required for an incorrect original or correction electronic file for which a replacement is being sent. Enter the ORIGINAL or CORRECTION electronic file name assigned by the IRS electronic filing system. If you are sending an original file, this field is blank. Dec Add-On Software Accounts Payable 1099 Procedure Notes 8 of 16

9 Transmitter s Media Number: A control number generated by the user when multiple submissions are made. The same number would be noted on the shipping label. This would be used if Accounts Payable and Resident Trust were generated and submitted separately. The default is 1. Note: Co No: xxx Payer data is not on file. Indicate Y to maintain, N to abort: Is displayed when the subject company 1099 Payer record is not on file. Indicate Y to perform maintenance without interruption to the update or N to return to the menu. IRSTAX file generation is complete. Is an Edit Listing required? Answer Yes or No as required. The Edit Listing may be printed in either Summary or in Detail Do you wish Summary Totals or a Detail listing?: Indicate Y if correct. Indicate N if you wish to edit any information. This completes the 1099 Generation process. NOTE: You must file your 1099 s by paper or electronic submission. See Attachment 1 of this document for instructions on electronic submission. Magnetic media files may be copied to diskette using program MMR.Z9 for backup purposes or for ease of file transfer to another computer for electronic submission. Dec Add-On Software Accounts Payable 1099 Procedure Notes 9 of 16

10 1099 Electronic/Magnetic File Generation The 1099 Electronic File generation programs may be accessed independently of 1099 Forms printing. The initial program for Standard Accounts Payable and Inter-Company Accounts Payable is APW.AA, Distributed Accounts Payable is DPW.AA and for Resident Trust, when the Accounts Payable system is not used, is RTW.AA. They all run the same overlays as the 1099 Forms printing programs do, after the files and data particular to those applications have been accessed. The instructions for creation of the electronic files and the printing of 1099 forms are the same. Since the examples for the printed forms is so extensive, this example shows only the basic requirements Minimum Amount: Enter the minimum amount paid to any one Vendor to qualify for a 1099 Combine Vendors by Federal ID: Answering Y to this option will sort all Vendors by their Federal ID number within the Transmitters Federal ID number. Vendor payments in different companies with the same Federal ID will be combined. It is not required for electronic filing but it is recommended. The default is Y. Multi-Facility directories are accommodated. Payment Year: Enter in YYYY format, ex The earliest year that may be processed is Prior Year Data: Asked only in AP programs. Current Year data is rolled to the Prior Year fields at year-end. If you failed to run this program before that took place you would be able to report that data by answering Y here. The default is N. Prior Year Indicator: This field is required by the IRS and it identifies the file as prior year data. Indicate Y or N. The default in N. This field is unrelated to the above Prior Year Data field. Include Resident Trust: Indicate Y to Include Resident Trust returns on the Magnetic/Electronic output or N to not include. Combine Resident Trust: Indicate Y to combine Resident Trust returns or N to not combine them. Multi-Facility directories are accommodated. Answer Yes to complete the file generation; answer No to end the session. Dec Add-On Software Accounts Payable 1099 Procedure Notes 10 of 16

11 The system will now create the electronic file. The file name chosen for the Electronic output by the IRS is IRSTAX. The program will append the Transmitters company number to it when creating the file (IRSTAX.001), if for some reason separate files are to be created and submitted to the IRS, that companies 3 digit company number would be suffix for each file name. Output file /datapath/filename exists. Initialize? This is asked if that file name already exists (the program was run more than once, old file etc ). Indicate Y to initialize and proceed with the file creation or N to end it. The Transmitter Maintenance screen is then displayed and an opportunity to make any corrections is provided. Answer N if you need to make corrections. When all the information is correct, answer Yes. After reviewing the Transmitter the following screen will appear: Dec Add-On Software Accounts Payable 1099 Procedure Notes 11 of 16

12 Payment Year: The payment year is required when run from the 1099 Forms print program. Test File Indicator: If you are preparing a test file for submission to the IRS, Indicate Y Indicate N if this is not a test file. The next two options are bypassed when it is a Test file. Replacement Alpha Characters: Required for replacement files only. Enter the two alphanumeric characters that appear immediately following your TCC Number on the Media Tracking Slip (Form 9267) Original File Name: Required for an incorrect original or correction electronic file for which a replacement is being sent. Enter the ORIGINAL or CORRECTION electronic file name assigned by the IRS Electronic Filing system If you are sending an original, correction or test file then enter blanks. Transmitter s Media Number: A control number generated by the user when multiple submissions are made. The same number would be noted on the shipping label. This would be used if Accounts Payable and Resident Trust were generated and submitted separately. The default is 1. NOTE: Co. No: NNN Payer data is not on file. Indicate Y to maintain or N to abort: Is displayed when the subject company 1099 Payer record is not on file. Indicate Y to perform maintenance without interrupting the update or N to return to the menu. Dec Add-On Software Accounts Payable 1099 Procedure Notes 12 of 16

13 IRSTAX file generation is complete. Is an edit listing required? : You will be prompted to print the Edit Listing. You can print it in Summary or Detail format. If, by mistake, you answered N to print the Edit Listing you can print it in Summary or Detail format by selecting it from the menu. (APW.BA) Do you wish Summary Totals or a Detail listing? Answer S or D as appropriate. Finally, answer Yes to print the listing or answer No to cancel the process. Magnetic media files may be copied to diskette using program MMR.Z9 Dec Add-On Software Accounts Payable 1099 Procedure Notes 13 of 16

14 Attachment Electronic Filing Specifications (from IRS Publication 1220) The FIRE System is designed exclusively for the filing of Forms 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, 8027, 8935, 8955-SSA and W-2G. A transmitter must have a TCC (see Part A, Sec. 6, Publication 1220) before a file can be transmitted. Once a TCC is obtained, electronic filers must create their own User ID, password and PIN (Personal Identification Number). See Part B, Sec. 5, for more information about PIN requirements. Test files are optional Electronically filed information may be submitted to IRS 24 hours a day, seven days a week. Technical assistance is available Monday through Friday between 8:30 a.m. and 4:30 p.m. ET by calling Filers should never transmit anything to IRS as a Replacement file unless the CHECK FILE STATUS option on the FIRE system indicates a previous file is bad. Within two days after a file(test or actual) has been submitted, filers will be notified by as to the acceptability of the file, if a valid address was provided on the Verify Your Filing Information screen. If using filtering software, configure software to accept from fire@irs.gov and irs.e-helpmail@irs.gov. If the file is bad, the filer must return to to determine what errors are in the file by clicking on CHECK FILE STATUS Connecting to the FIRE system Have the TCC and TIN available before connecting. Turn off pop-up blocking software before transmitting files. Your browser must support SSL 128-bit encryption. Set the browser to receive cookies. Cookies are used to preserve the User ID status. Point the browser to to connect to the FIRE system or to connect to the FIRE test system (November 1 through February. 15). First time connection to the FIRE system (If there has been a previous logon, skip to Subsequent Connections to the FIRE system. ) Click Create New Account Fill out the registration form and click Submit Create User ID Create and verify password. (The password is user created and must be eight alphanumeric characters, containing at least one uppercase, one lowercase, one numeric and cannot contain the User ID. The FIRE system requires passwords to be changed every 90 days or at the first logon attempt after 90 days. The previous 24 passwords cannot be used.) Click Create If the message Account Created is received, click OK Create and verify the 10-digit self-assigned PIN (Personal Identification Number). Click Submit If the message Your PIN has been successfully created! is received, click OK Read the bulletin(s) and/or Click here to continue Subsequent connections to the FIRE System Click Log On Enter the User ID Enter the Password (the password is case sensitive). Read the bulletin(s) and/or Click here to continue. Dec Add-On Software Accounts Payable 1099 Procedure Notes 14 of 16

15 Uploading a file to the FIRE System At the Menu Options: Click Send Information Returns Enter the TCC Enter your EIN: Click "Submit". The system will display the company name, address, city, state, ZIP code, telephone number, contact and address. This information will be used to the transmitter regarding the transmission. Update as appropriate and/or click Accept. Note: Please provide an accurate address for the correct person to receive the and to avoid having the returned to IRS as undeliverable. If SPAM filtering software is being used, configure it to allow an from fire@irs.gov and irs.e-helpmail@irs.gov. Click one of the following: Original File Replacement File Correction File Test File (This option will only be available from November 1 through February 15 at Enter the ten-digit PIN (If sending a test file, there is no prompt for this.) Click Submit Click Browse to locate the file and open it Click Upload When the upload is complete, the screen will display the total bytes received and the IRS assigned filename for the file. Note: If this information is not displayed on the screen, IRB may not have received the file. To verify, go to the CHECK FILE STATUS option on the Main Menu. If the filename is displayed, the count is equal to 0, and the results indicate not yet processed, IRB received the file. If the filename is not displayed, send the file again. If there are more files to upload for that TCC: Click File Another? otherwise, Click Main Menu It is your responsibility to check the acceptability of your file, therefore, be sure to check back into the system in 1-2 business days using the CHECK FILE STATUS option. Checking the FILE STATUS If the correct address was provided on the Verify Your Filing Information screen when the file was sent, an will be sent regarding the FILE STATUS. If the results in the indicate Good, not Released and the Count of Payees is correct, the filer is finished with this file. If the indicates any other results, follow the instructions below. At the Main Menu: Click Check File Status Enter the TCC Enter the TIN Click Search If the results on indicate: Dec Add-On Software Accounts Payable 1099 Procedure Notes 15 of 16

16 Good, Not Released If the Count of Payees is correct, the filer is finished with this file. The file will automatically be released after ten calendar days unless the filer contacts IRB within this timeframe. Good, Released The file has been released to our mainline processing. Bad The file has errors. Click on the filename to view the error message(s), fix the errors, and resubmit the file timely as a replacement. Not yet processed The file has been received, but results are not available. Please check back in a few days. When finished - Click Log Out - Click Close Web Browser Common Problems and Questions Associated with Electronic Filing Refer to Part B, Sec. 8 of Publication 1220 for common format errors associated with electronic/magnetic files. The following are the major errors associated with electronic filing: Common Non-Format Errors 1. SPAM filters are not set to receive from fire@irs.gov and irs.ehelpmail@irs.gov. To receive s concerning files, processing results, reminders, and notices, set the SPAM filter to Receive from fire@irs.gov and irs.e-helpmail@irs.gov. 2. Incorrect address provided. When the Verify Your Filing Information screen is displayed, make sure the correct address is listed. If not, update with the correct address. 3. Transmitter does not check the FIRE system to determine why the file is bad. Generally, the results of a file transfer are posted to the FIRE system within two business days. If the correct address was provided on the Verify Your Filing Information screen when the file was sent, an will be sent regarding the FILE STATUS. If the results in the indicate Good, Not Released and the Count of Payees is correct, the filer is finished with this file. If any other results are received, follow the instructions in the Check File Status option. If the file contains errors, get an online listing of the errors. If the file is good, but the file should not be processed, contact IRS within ten calendar days of the transmission of the file. 4. Incorrect file is not replaced timely. If a file is bad, fix the file, and resubmit timely as a replacement. 5. Transmitter sends an original file that is good, and then sends a correction file for the entire file even though there are only a few changes. The correction file, containing the proper coding, should only contain the records needing correction, not the entire file. Improper submission can result in duplicate reporting of payee information. 6. Transmitter sends a file and CHECK FILE STATUS indicates that the file is good, but the transmitter wants to send another file containing the same information. Once a file has been transmitted, a replacement file cannot be sent unless the CHECK FILE STATUS indicates the file is bad (one to two business days after the file was transmitted). If a file should not be processed, contact IRS at within ten calendar days to see if this is a possibility. 7. Transmitter compresses several files into one. Only compress one file at a time. For example, if there are ten uncompressed files to send, compress each file separately and send ten separate compressed files. 8. File is formatted as EBCDIC. All files submitted electronically must be in standard ASCII code. 9. Transmitter has one TCC, but is filing for multiple companies. Which TIN should be used when logging into the FIRE system to send a file? When logging into the FIRE system to send a file electronically, enter the TIN of the company assigned to the TCC. 10. Transmitter sent the wrong file. What should be done? Call IRS at The IRS may be able to stop the file before it has been processed. Dec Add-On Software Accounts Payable 1099 Procedure Notes 16 of 16