Vendor Setup - Taxing field descriptions

Fields are presented in alphabetical order. The fields displayed vary depending upon whether the company is based in the United States or Canada.

Taxing Information for a United States company

1099 Name

In some situations, the actual company name in Vendor Setup is not the name that should be printed on the 1099 form. Specify the name to be printed on the form. If this field is left blank, the vendor name is used.

1099 Name Control

Use this field to define the name to be used in the Name Control field on the 1099-MISC or 1099-NEC form magnetic media output. The 1099 Name Control field allows you to specify the value to be used for the Name Control field based on IRS guidelines.

If this field is blank, the 1099 Name in Vendor Setup is analyzed to remove characters from the first position of the field to the first space, using the assumption this is a first name, which is unnecessary for the 1099 output. Next, any characters that appear to be a middle initial are removed. Finally, the first four characters of the remaining value in the 1099 Name field are loaded into the Name Control on the 1099 mag media output.

If additional words remain in the 1099 Name field and these are Jr or II, these are removed and the last name determined above is loaded. If more than one word remains, the program concludes that the last name cannot be determined and the Name Control value is loaded as blank.

1099 Style

Two 1099 form styles are supported at this time. These are the Miscellaneous form (1099-MISC) and the Nonemployee compensation form (1099-NEC). However, special formats can be established. A zero ('0') defaults in this field, indicating that the vendor is NOT a 1099 account. Select 6 to indicate that the vendor is 1099-MISC and that the Miscellaneous form should be used. Select 11 if the vendor should receive a 1099-NEC form.

If you need one of the other forms, you must develop a custom routine and designate select an option in the Print Format for 1099s drop-down box in SA Administrator Options-Vendors-Print Formats.

A 1099 form must be filed for each person, other than corporations (Box 6 and 8 must be reported to corporations), to whom you have paid:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
  • At least $600 in rents, payments for services [including payment for parts and materials], prizes and awards, or medical and health care payments
  • Any fishing boat proceeds
  • At least $5,000 for consumer products sold to you as buyer for resale
  • Or withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
Table 1. List of 1099 Forms
1099-A  Information Return for Acquisition or Abandonment of Secured Property
1099-B Statement for Recipients of Proceeds From Broker and Barter Exchange Transactions
1099-C Statement of Cancellation of Debt
1099-CAP Changes in Corporate Control and Capital Structure
1099-DIV Statement for Recipients of Dividends and Distributions
1099-G  Statement of Recipients of Certain Government Payments
1099-H Statement of Health Coverage Tax Credit (HCTC) Advance Payments
1099-INT Statement for Recipients of Interest Income
1099-K Statement of Payment Card and Third Party Network Transactions
1099-LTC Statement of Long-Term Care and Accelerated Death Benefits
1099-MISC Statement for Recipients of Miscellaneous Income
1099-NEC Statement for Recipients of Nonemployee Compensation
1099-OID Statement for Recipients of Original Issue Discount
1099-PATR Statement for Recipients of Taxable Distributions Received From Cooperatives
1099-Q Statement of Payments from Qualified Education Programs (Under Sections 529 & 530)
1099-R Statement for Recipients of Total Distributions From Profit Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, etc.
1099-S Statement for Recipients of Proceeds From Real Estate Transactions
Box #

The box number indicates which of the boxes on the 1099 form the vendor's YTD payments are printed. Different boxes are updated based on the type of 1099 form you are generating.

These boxes may apply to the 1099-MISC form:

1. Rents

2. Royalties

3. Prizes and Awards

4. Federal Income Tax withheld

5. Fishing Boat proceeds

6. Medical and Health Care payments

7. Non-employee Compensation

8. Substitute payments in lieu of dividends or interest

9. Payer made direct sales of $5,000 or more of consumer products to a buyer for resale [no amount will print, only the box will be checked]

10. Crop Insurance proceeds

11. Not used

12. Not used

13. Excess golden parachute payments

14. Gross proceeds paid to an attorney

15a. Section 409A deferrals

15b. Section 409A income

16. State tax withheld

17. State/Payer's state no.

18. State income

These boxes apply to the 1099-NEC form:

  • 1. Nonemployee compensation
  • 4. Federal income tax withheld
ID #

Specify the vendor's Taxpayer Identification Number. This field is only available if your Tax Method is Sales and Use Tax. A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS.

Note: After entry, the ID # is replaced with asterisks for privacy.
Taxable status
Select Taxable if you are required to pay tax to this vendor. Select Non-Taxable (Exempt) if you do not have to pay tax.
Note:  If you have implemented AvaTax, or Sovos GTD, or Vertex Cloud, select the Taxable option. Third-party tax solutions use their own tax tables and exemption records to determine the tax liability for this vendor.

Taxing information for a Canadian company

GST registration status

The federal Goods & Services Tax (GST) type must be Registered, Unregistered, or Foreign. If the vendor is a Canadian vendor the GST type is normally Registered, that is, the vendor is registered to collect GST. Rarely, a Canadian vendor may be Unregistered. If the vendor does not have a GST registration number, specify Unregistered. You cannot claim a GST input tax credit without a vendor GST registration number. If you are importing goods from a foreign vendor and the foreign vendor does not have a Canadian GST Registration number, specify Foreign.

Reg #

Specify the vendor's Goods & Services Tax (GST) registration number.

Note: After entry, the Reg # is replaced with asterisks for privacy.
Taxable status

Select Taxable if you need to pay provincial tax to this vendor. Select Non-Taxable(Exempt) if you do not have to pay tax.