1099 forms are used in the United States to report various types of income that aren't from a regular employer—essentially, income not reported on a W-2. They're sent by payers (like businesses or financial institutions) to both the IRS and the recipient to document income earned during the tax year.

Here are some common types of 1099 forms:

1099-NEC: Reports nonemployee compensation, like payments to freelancers or contractors.

1099-MISC: Used for miscellaneous income (e.g., rent, prizes, legal settlements).

In Pronto the roles that hold the ability to use the 1099 functions are:

• PSA_1099 - 1099 Set up and Compliance
• PSA_1099_A - 1099 Set up and Compliance Admin

Once the roles are created and users have been given access they can start by creating the correct 1099 forms in the system. Under Accounts Payable → Supplier Maintenance the user should see a folder called 1099 Functions

The user will first make sure the 1099 Forms are set up. They will use the 1099 Forms Maintenance Function

This will bring the user to the AY table that holds the 1099 Form Types. If the user needs to add a type and has access to maintain they will click on Maintain.

Here the user will Enter the new Form that needs to be added. In this example we will add NEC - Non-Employee Compensation 

Once the form is created the user can select it and go into the maintenance of the form.

Here the user can add the boxes that are needed for the IRS. For NEC we will track Box 1 for Non-Employee Compensation with Threshold of $600.

Once all the forms and boxes are set up for each form the user can start tagging suppliers as 1099 suppliers. To do this the user will go into maintain supplier and there will be a new 1099 mode at the top.

The user can click on that and they will get prompted to add the 1099 information for that supplier. The user will then fill out if the supplier is a qualified 1099 supplier, withholding money, tax payer ID, which 1099 Form to user, which default box, and lastly state and state tax.

Once the information is filled out the supplier is now tagged as a 1099 supplier. The user can verify by going to 1099 Integrity and use Check 1099 Suppliers

Last step that the user will want to do is to build the totals for that supplier to capture all payments made to that supplier for the year. The user will go into 1099 Load Build and select the Build 1099 Totals form Cre-Trans. This is recommended to be done at the end of the year to capture all payments for all suppliers. 

It will ask Start Date and to clear the tax 1099 table. The user will select the start of the year and keep the box check to clear table then click on green check.

It will rebuild all the payments for that supplier and display the information in a grid afterwards. Here the user can drill down into the supplier or transactions.

Other functions that the user can perform would be until 1099 Inquiry. The user can look at all 1099 suppliers in period totals, period totals by state, or by box. These can be used to filter down details of specific suppliers. 

At the end of the year when 1099's are due the user can use the Export to 1099Pro function to export the 1099's if the customer uses 1099Pro. Since this happens once a year we recommend raising a help desk ticket to PSA for a consultant to help export the data properly and in the correct format.