1099 Agents (and Vendors) Setup and required fields

1099 Agents (and Vendors) Setup and required fields

All 1099 setup information for Agents and Vendors can be done under the People > People basics andPeople links.

It is important to note that while only the checkbox gets 1099? is required to calculate and print a 1099 for an agent or vendor, additional information is needed to ensure that the 1099 is complete and will be accepted by the government.

Fields required to generate 1099:

  • gets 1099?

Fields required to submit 1099 for tax purposes:

  • Name
  • Mailing Address
  • Tax ID (for vendors)
  • Personal Tax ID or Corporate Tax ID (for agents)
  • 1099 Type
  • gets 1099?

In order for 1099's to generate correctly, the company must also be set up correctly. To confirm that this has been done, please refer to the article 1099 Setup and required fields for Company

Verify Agent Mailing address

Agent contact information is located on the People basics submenu. For agents and vendors receiving a 1099 under their given name:

  1. Confirm first name
  2. Confirmlast name
  3. Confirm address is correct, and that address type is mailing

For agents using a corporate name for 1099 purposes, the name to be used for 1099's should be entered in the corporate namefield

  1. Enter 1099 name in corporate name field
  2. Check use corporate name checkbox
  3. Click save

If the address type is not set to Mailing, the address will not print on the 1099 document. To change the address type:

  1. Click the address to be updated
  2. Select Mailing from the address type drop down
  3. Click save

Fill in Required 1099 Information and Settings

To ensure the 1099 is generated correctly, kindly check the following required fields that need to be filled out on the People links tab of each agent or vendor's profile:

  1. 1099 type
  2. gets 1099 ?

The checkbox for gets 1099 ? is required for producing a 1099. All agents and vendors that do not have this checkbox checked off will be excluded from 1099 calculations and printing.

Enter Personal Tax ID or Corporate Tax ID

While there is only one tax ID type available for vendors, agents may use either the personal tax ID or corporate tax ID field.

  1. For agents not using a corporate name for taxes, the personal tax ID field must be filled in.
  2. For agents who use a corporate name for taxes, the corporate tax ID field must be filled in.
  3. If using the corporate tax ID, the corporation start should be filled in
  4. The corporation end can be used if an agent reverts from using their corporate tax ID to their personal tax ID

How does darwin Cloud determine which tax ID to apply to vouchers?

  • The personal tax ID field is used for all agents who do not use a corporate name.
  • The corporate tax ID field is an option for agents who use a corporate name. If it is left blank, darwin Cloud will default to using the personal tax ID (if filled in). This optional field was designed to allow users to easily split an agent's earnings between a personal and corporate 1099 based on the date on which the agent Incorporated or disincorporated. The corporate tax ID will be applied to vouchers that are dated between the incorporation date and the dissolution date (if applicable).
  • The corporation start indicates the date from which the agents earnings should be taxed under their corporate tax ID.
  • The corporation end date indicates the date after which the agents earnings should be taxed under their personal tax ID.

For agents who use a corporate name for taxes, if the personal tax IDfield is filled in and the corporate tax ID field is blank, darwin Cloud will automatically default to using the personal tax ID when generating 1099's

Please note that if an agent is NOT using a corporate name but the profile includes only a corporate tax ID, a 1099 will not be generated for the individual in order to prevent incorrect tax reporting.

Tax ID Security Settings and Access

When you enter the tax id value, it is displayed as ***-**-****. For security reasons, the 1099 value is hidden from most users. Only darwin Cloud users with special 1099 security clearance are allowed to view the tax ID.

For users with the role 1099 Tax ID:

  1. Click the lock icon to view or edit the tax id field

To grant users access to the tax ID field:

  1. Click Security
  2. Click Manage Users
  3. Search for the user
    • a new window will appear, enter the username to locate
  4. Check the box for 1099 TaxID
  5. Click save

NOTE: For further information about user setup, please review the article Modify User Profiles.

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