1099s can be tricky. You have to get the right kinds of payments in the right box and on the right form. And don’t forget that, in most cases, you don’t need to send 1099s to businesses that are incorporated (at least for now). So how do you make all of that happen in Peachtree?
Let’s start with telling Peachtree who should get a 1099 and who should not. Go to the Maintain menu and choose Vendors. Enter a vendor ID. On the General tab you’ll find a field for 1099 Type. Click on the down arrow and you can choose between None, Interest, and Independent Contractor. The first two choices are quite obvious: choose None if this vendor doesn’t get a 1099, or Interest if they should get a 1099-INT. Choose Independent Contractor for anyone that should receive a 1099-MISC, whether you consider them an independent contractor or not. Don’t worry about who may or may not reach the minimum dollar amount for a 1099. Peachtree will automatically exclude those who don’t reach the threshhold. If you have a vendor that should receive both a 1099-MISC and 1099-INT, you will have to set it to one, print those 1099s, and then switch the vendor’s setting to the other before printing again.
The next step is to let Peachtree know which payments go on a 1099-MISC (and in which box) and which ones go on a 1099-INT. Go to the Maintain menu, choose Default Information, and then Vendors. The 1099 Settings tab displays your entire chart of accounts. Next to each account you can choose where on a 1099 you want payments to that account to show up. Choices are:
- INT Box 1 or MISC Box 7 (this is the default setting)
- 1099-INT, Box 1
- 1099-MISC, Box 1
- 1099-MISC, Box 2
- 1099-MISC, Box 3
- 1099-MISC, Box 5
- 1099-MISC, Box 6
- 1099-MISC, Box 7
- 1099-MISC, Box 8
- 1099-MISC, Box 9
- 1099-MISC, Box 10
- 1099-MISC, Box 13
- 1099-MISC, Box 14
- None
By making these settings available for each GL account, Peachtree gives you the ability to control exactly how vendor payments appear on 1099s. Also remember that the amounts on 1099s will be determined by these settings at the time 1099s are printed, regardless of how they were set during the year.
Once you have everything set the way you want, it’s a good idea to review the 1099 Vendor Report. When you are satisfied that the amounts are right, you can print your 1099s by going to the Reports & Forms menu, choose Forms > Tax Forms. Then select the type of 1099 you want to print and click the Prevew And Print button.
