When taxes are withheld for Tax Authorities, Sage 300 supports the tracking of 1099 codes. For the tracking process to be successful, both the 1099 amount type and the corresponding federal and state 1099 codes must be set up correctly.
How to set up 1099 amount types and code:
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Go to AP Setup and click on 1099/CPRS:
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Set up a code with Tax Reporting Type 1099 and Amount Type Federal Income Tax Withheld.
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Set up another code with Tax Reporting Type 1099, and Amount Type State Tax Withheld.
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Go to Tax Services and click on Withholding Tax Rates:
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Select the Tax Authority for Federal and enter the 1099 Code for Federal Income Tax Withheld.
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Select the Tax Authority for State and enter the 1099 Code for State Tax Withheld.
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Set up the Withholding Tax Rates.
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Select the applicable option for Withholding Tax Base, enter the Withholding Tax Account and enter the rates.
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Go to AP Vendors screen, and set up the Vendor.
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Go to Invoicing tab and ensure that it is using the correct Tax Group:
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Select Tax Reporting 1099.
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Enter the Tax Number, Tax Number Type, 1099 Code, First Name, Last Name, FATCA and Tax Withholding State.
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Go to AP Invoice Entry:
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Create an invoice for the vendor and enter the 1099 amount.
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Post the invoice.
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Go to AP Payment Entry:
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Make a payment for the invoice previously posted.
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Post the payment.
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Go to AP 1099/CPRS Inquiry to check the 1099:
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The taxes withheld will go to the corresponding 1099 code that it was mapped to.
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If the AP payment is reversed in Bank Services, the 1099 amounts including the amounts withheld for federal and state will also be reversed.