If you have vendors for whom you are required to issue form 1099, you’ll want to create tracking items for each 1099 category including: Rent, Other Income, and Non-Employee Compensation. Then, you’ll assign those tracking items to the appropriate vendors. This allows you to import data to the Procare W2 / 1099 Software for the purpose of printing the 1099-Misc and, beginning with tax year 2020, the 1099-NEC for vendors with non-employee compensation. Contact your tax adviser or visit the IRS Web Site for more information about 1099 requirements.
Set up & assign vendor tracking as follows:
- Create a Tracking Group called something like “1099 Categories” with 3 new Tracking Items under the Vendor tab:
- Other Income
- Non-Employee Comp.
- Assign the Tracking to Vendors.
- Follow instructions for using the 1099 Software.