Version 2020 added 1099 integration with Aatrix (the program used to generate payroll tax forms) while also still supporting printing of 1099s using the traditional editable forms built into Sage 50. But the Aatrix option was only available to payroll subscribers. Starting in version 2023, the legacy 1099 method has been dropped in favor of producing 1099s exclusively through Aatrix, which will be available to anyone on a current subscription or Business Care Plan, not just payroll users.
For those of you who are new to this method, you’ll go to the Reports & Forms menu, choose Forms, then Tax Forms. In the Forms list, double click on Payroll Tax Forms. The Payroll Tax Forms selector will open. Here you can choose from 1099-INT, 1099-K, 1099-MISC, and 1099-NEC (in addition to the payroll tax forms). Select the form you need, choose the correct year in the lower left section, then click OK. That will launch the 1099 Setup Wizard. Simply answer the questions and fill out the needed information about your company.
That will bring you to the W2/1099 preparer window. This is a spreadsheet style window listing all 1099 vendors that met the dollar threshold. There are two important things to know about this window.
- The light blue box in the upper left corner provides step by step instructions to walk you through verifying your information.
- If you have more than one type 1099 vendor, particularly both NEC and MISC, check the list of recipients VERY carefully. You may find that both sets of recipients have been pulled into the list and you’ll have to delete the ones that don’t belong. Deleting is done like you would in Excel. Right click on the row number you want to delete and choose Remove Row.
When you’re ready to print, you’ll have two options. You can print your own forms (with optional e-filing) or you can use Aatrix’s Complete eFile Service.
I highly recommend the complete efile service. For $3.10 per recipient (less if you are already an eFile subscriber) Aatrix will print, mail, and eFile your 1099s. Minimum charge is $14.95. If you only have a few 1099s, that will likely be less than the cost of forms, envelopes, and postage to print them yourself. You do need an Aatrix login; if you don’t already have one, you’ll be prompted to set one up. (Prices as of January 2023)
If you want to print your own forms, you’ll need traditional 3-per-page red forms for the IRS copy and 1096. Recipient copies are formatted for blank 4-Up forms. The payer copy can be printed on plain paper. Even when printing your own forms you can still eFile through Aatrix, if needed, for less than the price of the complete service, but still with a $14.95 minimum charge.
Prices quoted here are accurate to the best of my knowledge as of the time of writing.
Users on version 2022 or older can still print 1099 forms using the legacy form printing, but the formats will not be updated. So you will be responsible for updating the layout yourself using the built in form designer.
Regardless of which method you use to prepare your 1099s, the 1099 Vendor Report is still your best tool to make sure you’re getting the right recipients and amounts.
