Friday Feature – Basing 1099s on Object Codes

The 1099 and W2 fun just never stops! Continuing our Friday Feature journey on 1099 processing, this week we focus on how Escape Online uses the object codes from the accounts used to pay vendors to determine if the dollar amount is 1099 worthy.
As most of you know, in the Vendor record, you can specify the 1099 box for all payments. But, what if you want to have amounts loaded automatically to the appropriate box? Well, Escape Online has got you covered.

If you want Escape Online to determine which box to put the 1099 amount in based on the object code of the account, set the 1099 flag to YES and leave the 1099 box field as N/A in the Vendor record.

Next, you tell Escape Online which object codes go to which 1099 boxes.

Notice how the highlighted object code of 5803 is coded for box 14 and the object code of 5809 is coded for box 7.

Now, when you load 1099s, Escape Online reads through vendor, check and journal entry data files for the calendar year you are reporting — searching for payments made to vendors based on the object codes you specified with a form 1099 box in the Account Components activity.

When it finds checks paid (or prepaid) with accounts that contain those object codes, Escape Online writes those amounts to the 1099 box.

Now let’s see how this works using a LIVE example.

In this example, you see a 1099 that has system-generated amounts in the Non-Employee Payments (box 7 at the top) and Attorney Fees (box 14 at the bottom). Obviously, this vendor (who is a lawyer that also conducts training seminars) could not have the 1099 box set in the Vendor record because there is more than one box that needs amounts.

This is a perfect case for the reading of object codes to determine the 1099 box!

When the lawyer was conducting seminars, those payment accounts had the 5809 object and they were summarized in the Non-Employee payments (box 7).

When the lawyer was dispensing legal advice, the accounts used for payment had the 5803 object and those amounts were summarized in the Attorney Fees (box 14).

Defining 1099 boxes by object codes really makes the 1099 process easy. All you have to do is click a button to load the 1099s and almost all of the legwork has been done for you!