IRS Form 1099 Overview

This topic provides an overview of compiling and generating the IRS form 1099.

Miscellaneous and non-employee compensation that exceeds the threshold set by the IRS must be reported. WebSmart keeps this threshold updated in the system.

As of calendar year 2020, the IRS requires non-employee compensation to be reported on the form 1099-NEC, rather than on the 1099-MISC. Click here for more information.

1099 Process

1. Review the Vendor List - 1099 Identifier Report to ensure the 1099 income type and total vendor transactions are correct.

2. If needed, edit vendor records to correct the 1099 income type and contact information.

• You can edit the contact information in Compliance > Federal > IRS 1099, but then you'll need to edit it again the next year.

• The 1099 income type must be correct in the vendor record in order to generate the proper 1099 — or to generate one at all.

3. Correct vendor transactions as needed to correct the amounts to be reported.

4. Compile the 1099 data.

5. Create 1099s for vendors who need both 1099-MISC & 1099-NEC.

6. Edit 1099s as needed, for example, for a vendor who needs both 1099-MISC & 1099-NEC forms.

7. Re-compile 1099 data as needed.

8. Generate the 1099s.

9. If applicable, create the electronic file for the IRS — Admin > Reports > Report Admin > Built In Reports > IRS 1099 Extract.

Other 1099 topics

Print/reprint individual 1099s

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