How do I set up Vendor Tracking for 1099s?

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:

1. Create a Tracking Group called something like “1099 Categories” with 3 new Tracking Items under the Vendor tab:
   1. Rent
   2. Other Income
   3. Non-Employee Comp.
2. Assign the Tracking to Vendors.
3. Follow instructions for using the 1099 Software.