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Release 362: US Tax Legislation "1099 Tax Reporting"

Purpose

Purpose: To support US Tax Legislation "1099 Tax Reporting" in Globe 2003 (US legislation)

Background

There are currently 16 different 1099 Forms that users can file with the IRS: 1099A, 1099B, 1099C, 1099CAP, 1099DIV, 1099G, 1099H, 1099INT, 1099LTC, 1099MISC, 1099OID, 1099PATR, 1099Q, 1099R, 1099S and 1099SA.

Globe 2003 does not support 1099 tax reporting whereas Macola ES supports only 1099MISC. In Macola ES, the 1099MISCprovides options to report several different types of earnings or categories. The different types of earnings/categories in 1099 Categories are:

  • Rents
  • Royalties
  • Other Income
  • Fishing Boat Proceeds
  • Medical & Health Care Payments
  • Non-employee Compensation
  • Substitute payments in Lieu of Dividends or Interest
  • Crop Insurance Proceeds
  • Excess Golden Parachute Payments
  • Gross Proceeds Paid to an Attorney

Globe 2003 will also support the 1099MISC form now for standardization purposes. 

What has been changed

Note: This implementation is only for US legislation

In Release 362, the changes made are detailed in the following sections:

        1. Vendor Maintenance via [Finance/Accounts Payable/Maintain]

        2. Purchase Journal via [Finance/Entries/Purchase]

                Note: Only apply for purchase invoice and purchase credit note created from Purchase Journal

        3. Card Maintenance via [Finance/Accounts Payable/Card]

                Note: Only apply to option 'Card' and NOT 'Payables'

        4. [Finance/General Ledger/Analytical Accounting] - <Change> function

        5. [Finance/General Ledger/Select/Search] - <Change> function

                Note: the <Change> function only available when it is grouped by 'Our ref/Entry'

        6. Under 'Filter' section for all related applications, this '1099 Category' selection list by default will always be blank (i.e. an additional           "blank/NULL" selection will be added to the selection list)

1. Vendor maintenance

In the vendor maintenance screen, the following fields have been added under the "Financial" tab (Screen 1):

1099 Category

The selection list includes:

  • NONE
  • MRNT - Rents
  • MRYL - Royalties
  • MOTH - Other Income
  • MFBT - Fishing Boat Proceeds
  • MMED - Medical & Health Care Payments
  • MNEM - Non-employee Compensation
  • MSPA - Substitute payments in Lieu of Dividends or Interest
  • MCRP - Crop Insurance Proceeds
  • MEGP - Excess Golden Parachute Payments
  • MATT - Gross Proceeds Paid to an Attorney

The defaulted category should be "NONE" for existing or new vendors.

ii) Tax ID

Users will have to indicate if the number to be entered as the Tax ID is a Federal ID Number or Social Security Number. This number will be used as the Recipients Identification Number on the 1099 Form. The format of the number entered is:

Format to enter Federal ID Number ##-#######
Format to enter Social Security Number ###-##-####
 

Screen 1: Vendor Maintenance

If the user selects category "NONE", the Tax ID field will be enable and this field no longer mandatory. If the user selects a category other than “NONE” and does not enter a “Tax ID”, a warning message will be displayed when they save the record (Screen 2):

Screen 2: Warning message

Here, if the user selects "Yes", the vendor's record will be saved without any Tax ID. If user selects "No", the user will return to the Vendor maintenance screen and the Tax ID field will be highlighted.

2. Purchase Journal maintenance

In the Purchase Journal, the "1099 Category" field is added in the header (Screen 3). 

Screen 3: Purchase Journal

The value of this field will be defaulted to the 1099 Category defined in the Vendor Maintenance screen. For example, if the 1099 Category for a particular vendor is defined as "NONE" in Vendor Maintenance, then the 1099 Category in Purchase Journal should be defaulted to "NONE" as well. However, users are allowed to change the defaulted value.

If the user selects a category other than "NONE" on an invoice for a vendor without a Tax ID defined in Vendor Maintenance, a warning message will prompt:

Screen 4: Warning message

Here, if the user selects "Yes", it will lead back to the purchase invoice screen and the 1099 Category field will be highlighted. If user selects "No", the user will be returned to the Vendor maintenance screen and allow user to continue with the entry. There are times when you need to enter the invoice information, but are still waiting for the vendor to supply the Tax ID number. The idea of the warning was to let them know the information was missing but not stop them from actually entering the invoice.

Note:

-The 1099 Category is only applicable for purchase invoice and purchase credit note originating from the Purchase Journal.

-The 1099 Category will be hidden if the vendor selected is type 'Employee'

3. Vendor Card maintenance

In the Vendor card, the following have been added (Screen 5):

i) For vendor type 'Employee', the "1099 Category" selection list will be hidden in 'Card'

ii) "1099 Category" column: This column is shown under Display option Card only.

iii) "1099 Category" filter: This filter allows user to filter the entries in Vendor card by any of the 1099 Category defined or "NULL" (blank). The default value is "NULL".

Screen 5: Vendor Card maintenance

4. Select/Search

In Select/Search, the following have been added (Screen 6):

i) "1099 Category" column

ii) "1099 Category" filter: This filter allows user to filter the entries by any of the 1099 Category defined or "NULL" (blank). The default value is "NULL".

Screen 6: Select/Search

The 1099 Category defined at the entry level in the Purchase Journal may be changed via the <Change> function in Select/Search (Screen 7). The options supported for <Change> function are:

  • Our ref.
  • Our ref./Entry

Screen 7: Change screen

5. Analytical Accounting screen

In Analytical Accounting, the following have been added (Screen 8):

i) "1099 Category" column

ii) "1099 Category" filter: This filter allows user to filter the entries by any of the 1099 Category defined or "NULL" (blank). The default value is "NULL".

Screen 8: Analytical Accounting

Here, the <Change> function is only supported if "Group by" is set to "Our ref" (Screen 9).

Screen 9: Change screen

6. Others

The following validations will be applicable for the <Change> function in Vendor Card, Select/Search and Analytical Accounting:

  • The "1099 Category" field will only be shown if the entry is a purchase invoice or purchase credit note regardless of entry origination (Purchase Journal or General Journal). The current value of the category will be shown by default, i.e. the value defined at the entry level or the last change effected.
  • If the selected transaction belongs to a vendor type 'Employee', hide the '1099 Category' selection list.
  • If user selects multiple "Our ref" for change, the value in the '1099 Category' for all "Our ref" will be NULL (blank). Only update those transactions that do not belong to the vendor type Employee.
  • If a vendor is defined as a 1099 vendor (i.e. if a 1099 Category is selected for the vendor):
    • changing the category for entry originating from General Journal is ONLY allowed from "NULL" to other values (i.e. "NONE", "MRNT", etc.) and not vice-versa (i.e. from "MRNT" to "NULL"),
    • changing the category for entries from other values (i.e. "NONE", "MRNT", etc.) to "NULL" are not allowed.

     

 

 

 

 

     
 Main Category: Support Product Know How  Document Type: Release notes detail
 Category: Release Notes  Security  level: All - 0
 Sub category: Details  Document ID: 12.157.306
 Assortment: Exact Globe  Date: 10-05-2017
 Release:  Attachment:
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