As the calendar year winds down, it’s time to start thinking about vendor payments and 1099-MISC forms. Remember, you only have until January 31, 2018 to get those filed for 2017 calendar year payments. Now is a good time to start scrubbing your files and your data to make sure things are in order when the time comes so you’re not scrambling at the last minute. Here are a few things that can be done to help get you ready:
- Make sure you have the appropriate vendor forms from your suppliers. Generally that will be a form W-9. If you’ve gone through that process in prior calendar years you can probably just focus on any new vendors. If you have made payments to suppliers but don’t have a W-9 on file for them, request one from them now and make a note to request them before making any payments to new vendors in the future.
- Make sure you have a handle on any electronic payments that are not run through your regular bill payment process. These may not show in your system as a 1099 disbursement but will still need to be reported (assuming other requirements for issuing a 1099 have been met).
- Look through your vendor data to make sure you have employer identification numbers (EINs)/social security numbers, physical addresses, and e-mail addresses if you plan to send the forms electronically. If you have the time it’s a good opportunity to look at other vendor information for omissions while you have the files open.
- Run a year-to-date report to look through your payment data as it stands today to identify anything that doesn’t look right. Many accounting systems will let you run reports with 1099 data on them without actually creating 1099s. If your system doesn’t have that type of report, use a regular payment register. If these reports don’t include your vendors’ EINs you’ll want to make sure you have all of those as well.
- Consider how you plan to create and send your 1099s. There are a number of service providers, such as track1099, that will electronically file your 1099s using data you enter or upload, doing away with buying, printing, and sending paper copies to the IRS. Many of these same service providers offer electronic and/or paper delivery to your 1099-MISC recipients as well.