Form 1099 and 1096

The following information is covered in this chapter:

• Important Notes
• Processing and printing 1099 Forms
• Printing Form 1096

Important Notes

This section discusses processing and printing your 1099s and Form 1096. Please review this information before you begin processing and printing your 1099s.

The instructions provided in this chapter apply only to those users who have purchased their 1099 forms directly from Aatrix Software.
To order Aatrix's 1099forms, call Aatrix Sales at 1-800-426-0854. If you are using non-Aatrix 1099 forms, refer to your payroll User Guide in regard to aligning the 1099 fields.

• The ability to generate Form 1099 and Form 1096 is a feature contained in Aatrix Top Pay and Ultimate Payroll.
  
  If you are using a different accounting program, you can still process 1099 forms by upgrading your payroll application by contacting the Aatrix sales department at 1-800-426-0854.


• At the end of each year, 1099s are required for any non-employees and subcontractors that you pay during the course of the year.
• The Year-end Update contains all the changes to Form 1099 (DIV, INT, MISC) and 1096 for 2004, so be sure to install the update on your computer prior to processing and printing your 1099s and 1096.
• If you need to generate more than one type of 1099 form (DIV, INT, MISC), you must process and print the forms in separate batches.

Processing and Printing Form 1099

The payroll program provides you with three different types of 1099 forms (DIV, INT, and MISC). You must process and print each type of 1099 form (MISC, INT, DIV) in separate batches. After processing and printing the first batch of 1099 forms and the associated Form 1096, delete the 1099 Report Queue and then process and print the next batch of 1099 forms and the related Form 1096.

The processing and printing of your 1099s is laid out in a series of steps. Follow each step carefully as it will make the processing and printing of your 1099s a more trouble-free, less stressful experience.

• Step 1 - Before processing and printing 1099s
• Step 2 - Processing/queuing your 1099s
• Step 3 - Printing your 1099s

Step 1 - Before processing Form 1099

If you're still set up from running your W2s as described in the previous section, you're good to go, but if you've saved the 1099s for another time its best to go back and double-check essential information.

Before processing Form 1099

1. In your payroll application, access the Company tab window and verify that your company information is entered correctly.

Your Federal ID number should be entered in the following format XX-XXXXXXX (replacing the X's with the appropriate number and including the hyphen).

2. OS9 users only: If your printer has a feature called Background Printing, turn it off before you open your payroll program and start printing your 1099s.

Step 2 - Processing your 1099s

As with Form W2, Form 1099 for each individual is reviewed in the Preview Report window and then sent to the print queue

If applicable, use the commands in the Preview Report menu to help in the processing of your 1099s. A brief description of each command is provided in Appendix A in this manual. For more information please see Preview Report Menu commands .

To process recipient's 1099

1. In the Reports tab window of your payroll application, click the Standard tab to view the standard reports list.

2. Select Form 1099 in the list of reports.

If the Form 1099 report option is not displayed in the Reports list, click the Edit List button. In the Edit List window, make sure the Form 1099 report is selected for display in the Reports List.

3. Make appropriate selections for reporting options.

Report on List

or Report on Employee and then select the appropriate list from the pop-up or employee name.

Skip employees not paid

Mark or unmark this checkbox as you require.

Report period

For Form W2, this pop-up will default to One Year and the year 2004 will display in the Year field directly below.

Report Limits

If appropriate, you can narrow down the W2s to be printed in the Report Limits box by selecting to print for a specific department, pay period, or other limits.

4. Click the Preview Report button at the top of the Reports list.

A small dialogue will appear in which you choose the type of 1099 you are going to process.

5. Choose the type of 1099 (DIV, INT, MISC) and click the Select button.

The 1099 Form appears on the screen for the first individual in the Employee List. It is designed to look like an actual 1099 form. The fields are automatically filled in with the individual's Pay History information.

6. IMPORTANT: Before proceeding with 1099 processing for the first employee, verify that there are no "old" 1099s in the W2 Report Queue.

To do so, select Report > View/Print Queue from the File menu. If there ARE any 1099s in the queue, select Remove All and click Yes in the verification window.

The View/Print Queue command is grayed out when the Report Queue is empty. A brief description of each command in the Report menu can be found in Appendix A, see Preview Report Menu commands .

7. Verify the information displayed for the first 1099 recipient is correct.
8. Select Report > Add to Queue.

After the 1099 is queued, the next 1099 recipient from the Employee List is displayed in the 1099 screen.

8. Repeat Steps 9 and 10 for every employee who worked for you throughout the year.
9. When finished, select Report > Print/View Queue.

This launches the 1099 Report Queue dialogue.

You may quit the program at any time during the Queuing process by selecting Report > Exit Report. All the 1099s that you queued will be saved and you can print them when you return to the program.

The 1099 Report Queue

The 1099 Report Queue lists all the names of individuals whose 1099s you have selected for processing. With the exception of the 1096 button, which we will discuss later in the section, the controls in this dialogue are similar to those of the W2 Report Queue. For a review or discussion of the features in any Queue dialogue, please see The Report Queue dialogues .

Step 3 - Print your 1099s

This section will discuss how to print Form 1099 forms from the Report Queue. The 1099 printing instructions assume you've already clicked the Print or Print All button in the 1099 Report Queue window and the Print Queue window is active.

Printing process in general

The 1099 process is very similar to the process for Form W2. Again, there are four separate sets of copies: Federal, Employer, Employee, and the Notice to Recipient. The four different sets of copies are as follows:

• Federal Red Copy: The Federal Copy A (or Federal Red) copy, which you file with the Federal government, prints the data of two different 1099 recipients on each pre-printed form.
• Employer Copy: 1099 Employer record copies print on plain perforated 11 x 14 paper. The program will print four different 1099 recipients per page.
• Employee Copy: 1099 Employee record copies print on plain perforated 11 x 14 paper. Each 1099 recipient gets four copies of his or her 1099 form to file with the Federal, State, and local government as well as a personal records copy.
• Notice to Recipient: This prints the Notice to SubContractor information sheet onto a piece of 8.5 x 11 plain paper. All your subcontractors should receive a Notice along with his or her 1099s. The program prints two subcontractor notices per sheet of paper.

In general, it is always a good idea to print a test page before printing onto pre-printed or perforated forms.

Printing Test copies

It is a good idea to print test copies of each of the four parts of the 1099 Form. This way, you make sure the data is aligned and printing properly before you ruin a preprinted form or an expensive stack of perforated pages. Each set of copies has different paper requirements, but the test printing process is the same for each and outlined in the next instruction set.

How to print test copies

1. Click the Sample button.

This will generate the standard OS Page Setup dialogue.

2. In the Page Setup dialogue, choose the appropriate page size for the type of 1099 your are printing.

• Federal Red: use a photocopy of a preprinted form, an extra preprinted form, or plain US letter sized paper  
• Employer and Employee copies: use US Legal 11 x 14 size paper or a few of the pre-perforated sheets for these copies.  
• Notice to Employees: Use plain US letter size paper

3. Select the Portrait paper orientation (normal as opposed to the "sideways" or landscape mode).
4. When selections are made, load the correct paper for the type of 1099 you are test printing. Refer to the descriptions in Step 2 above.
5. Click the OK button.

This launches the standard Mac OS print dialogue.

6. Click the Print button to print your sample form.
7. Verify that all the fields are aligned correctly.

To do so, take your sample printout and hold it over an actual form.

If the text on your sample printout lines up to an actual pre-printed form or falls into the proper spaces on the pre-perforated sheets, continue with printing the actual copies.

If the text on your sample printout does not line up to the actual pre-printed form, you can take the following measures to correct them.

Page Align

Usually the Page Align feature easily corrects most printing alignment problems. To access the Page Align feature, click the Page Align button in the Print Queue dialogue.

Enter a numeric value into the Vertical and Horizontal entry boxes and choose the appropriate radio button for Up, Down, Left, or Right. Click the OK button and print another sample form. Make more adjustments if needed, or if the sample is acceptable, proceed to printing your actual copies.

Edit Template

You should only use the Edit Template button to make adjustments to government forms as a last resort. You might accidentally remove fields or make changes to the wrong ones instead of simply moving them. This may result in your company's and your employee copies being rejected by the filing agency. Refer to the Payroll Series User Manual Chapter 10, Check Designer, for information on moving or changing fields on a template.

Print the Federal Copy

Make sure you've printed a Sample form to test your printer for alignment before printing your Federal copies. Load the printer with the preprinted Federal form before printing! These instructions assume you have clicked the Print or Print All button in the 1099 Report Queue and are now in the Print Queue dialogue. Follow these instructions carefully.

Printing the 1099 Federal copy

1. In the Print Queue dialogue, choose the Federal (Red Copy) radio button.
2. From the Template pop-up menu alongside, select the 1099 Federal Red appropriate to the type of 1099 you are processing.

If you use a version of the software prior to v14.x: At this step, click the Page Setup button and set the Page Size as US Legal and the orientation as Portrait. In Version 14.x and above, simply clicking the Sample or Print button will automatically generate the Page Setup dialogue. Users of older versions of the payroll application should always click the Page Setup button each time a new template is selected.

The instructional text in the scrolling window of the Print Queue dialogue will indicate how many forms you need to insert into your printer. You may have to scroll down to view.

3. Click the Print 1099s button.

The Macintosh Page Setup dialogue will open. Make sure the settings are still correct from the sample form you printed earlier.

The Federal Red copy settings should be US Letter for size and Portrait (normal) for orientation.

4. Click the OK button to launch the Macintosh Print dialogue if settings are correct.
5. In the Macintosh print dialogue, click the Print button.

When done printing the Federal copy, proceed to the Employer copy, discussed below.

Print the Employer Copy

The Employer Copy is for the Employer's records. It will print four 1099 recipients per each 8.5 x 14 perforated sheet form. Make sure you have printed a Sample copy as described in How to print test copies . Note that the sample printout will only print out three of the four 1099 copies.

Printing Employer Copy

1. In Print Queue dialogue, choose the Employer Copy radio button.
2. From the Template pop-up menu alongside, select 1099 Employer Copy.

If you use a version of the software prior to v14.x: At this step, click the Page Setup button and set the Page Size as US Legal and the orientation as Portrait. In Version 14.x and above, simply clicking the Sample or Print button will automatically generate the Page Setup dialogue. Users of older versions of the payroll application should always click the Page Setup button each time a new template is selected.

The Print Queue window will indicate how many forms you need to insert into your printer. This is indicated in the 3rd paragraph of instructions in the scrolling list window on the right hand side of the Print Queue window.

3. Click the Print 1099s button.

The Page Setup dialogue will re-open. Verify the settings remain correct from printing your sample copy.

For this form you must use the US Legal page size and the Portrait (normal) page orientation. Then click the OK button to call the standard Mac OS Print dialogue, but do not click the Print button until after the printer is loaded with the correct paper!

4. Load 8.5 x 14 perforated sheets into your printer.

When printing is complete, it's time to print the Recipients copies as described in the following section.

Print the Recipient's 1099 Copy

This is the copy that goes to the subcontractor. Make sure you first print a sample copy using the instructions in How to print test copies . Note that the Sample copy will only print out three of the four 1099 copies.

When printing the actual copy, the application will print for each recipient one sheet that contains four 1099 copies: the federal, state, local, and personal records copy.

Printing the Recipient's 1099 Copy

1. In the Print Queue dialogue, choose the Employee Copy radio button.
2. From the Template pop-up menu alongside, select 1099 Employer Copy.

If you use a version of the software prior to v14.x: At this step, click the Page Setup button and set the Page Size as US Legal and the orientation as Portrait. In Version 14.x and above, simply clicking the Sample or Print button will automatically generate the Page Setup dialogue. Users of older versions of the payroll application should always click the Page Setup button each time a new template is selected.

The Print Queue window will indicate how many forms you need to insert into your printer. This is indicated in the 3rd paragraph of instructions in the scrolling list window on the right hand side of the Print Queue window.

3. Click the Print 1099s button.

The Page Setup dialogue will re-open. Verify the settings remain correct from printing your sample copy.

For this form you must use the US Legal page size and the Portrait (normal) page orientation. Then click the OK button to call the standard Mac OS Print dialogue, but do not click the Print button until after the printer is loaded with the correct paper!

4. Load 8.5 x 14 perforated sheets into your printer.
5. Click the Print button.

When printing is complete, proceed to the next step. the Notice To Recipient.

Print the Notice to Recipient Copy

The Notice to Recipient option prints an information page that describes the fields on the 1099 Form. The notice must be given to each individual who receives a Form 1099. For this notice, you need regular letter size printer paper and shouldn't have to print a sample copy--although you may want to print one to make sure the text isn't going to print off the page. Each page will have two Notices on it, so you'll have to cut the pages in half when printing is finished.

Print the Notice to Recipient Copy

1. In the Print Queue window, choose the Notice to Recipient radio button.
2. Load letter size plain paper into your printer.
3. Click the Print 1099s button.

The Page Setup dialogue will open. Verify the settings are correct for this form.

You will need US Letter page size and the Portrait (normal) page orientation. Then click the OK button to call the standard Mac OS Print dialogue, but do not click the Print button until after the printer is loaded with the correct paper!

4. Click the Print button.

The program prints two Recipient Notices per sheet of paper.

Printing Form 1096

The Form 1096 rep ort is a summary of all the 1099 forms you are submitting to the Social Security Administration. It is filed along with Federal Copy A of Form 1099. The information for your 1096 report is extracted from the 1099 forms in the 1099 Report Queue. Therefore, you must make sure all applicable 1099s are in the 1099 Report Queue, and you do not have any duplicated or unnecessary entries.

Processing Form 1099 consists of three stages: Enter Information, Print Sample, and Print Report.

Enter the 1096 information

1. In the Print 1096 dialogue, verify that the 1096 Form displays in the Print using the template pop-up.

2. Select or fill out the remaining Fields information as needed.

Use EIN/SSN

Enter your EIN or SSN in the text box.

Contact information

Enter appropriate contact information for contact name and phone number.

Number of forms

Enter the number of individuals for which you processed Form 1099.

Federal income tax

The number in this text box is automatically calculated from the 1099 processing.

Total amount reported

Again, the number that appears in this text box is calculated automatically from the 1099 processing. Make sure it is matches your records.

When all information is entered, it's time to print a sample report to make sure the form data will print correctly to the preprinted government form.

Print sample 1096

1. Click the Sample button.
2. Insert 8 1/2" x 11" plain paper sheets into your printer, or use an extra pre-printed red 1096 form, to print your sample.

Because printers differ on how they "grab" paper, be sure to note how your printer prints (e.g., data face up, data face down direction).

3. Follow Instructions 3 to 7 How to print test copies and take appropriate action to align your form if necessary.

The program prints the Sample 1096 using actual 1099 information from the 1099 Report Queue.

When alignment is made and data checked for accuracy, you are ready to print the actual filing copy of the 1096.

Printing the 1096 Federal copy

1. Insert the pre-printed red 1096 form into your printer.
2. Click the Print 1096 button.

This will generate the Macintosh OS print dialogue. Make sure your settings remain correct from your sample printout and the correct paper is loaded, in this case the preprinted Federal Red copy of Form 1096.

3. Click the Print button.

Once the 1096 prints, review, sign and mark yet another checkbox off on your Year End procedure checklist.

Before deleting the 1099s from the Queue, copy the Payroll 1099 Queue file located in the Employee Files ƒ folder to external media. This will provide you with a backup if you ever need to access the information at a later date.

Another phase of your Year-end procedure is finished, and now its time to print off any other reports that apply to the type of business you have. These reports are discussed in the next section, Other Year-End Reports