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E-File 1099s

E-File 1099s: Prepare 1099 Type/Options and Form Alignment

Follow the steps in this article to review 1099 Type/Options and ensure that you are prepared to print 1099 forms and create the electronic file.

Reviewing 1099 Type

It's important to review the 1099 Type (form and box) before you print your forms or create the electronic file. Follow the steps below to access and review the 1099 Type.

  1. In Budget, from the top menu, select Vendors.
  2. Use the red up/down arrows to select/scroll between vendors.
  3. Once you are on a vendor, select the 1099 Type field and select the appropriate 1099 type.
  4. Options include:
    • None: Use this option when the payment to the vendor is exempt from 1099 filing requirements (e.g. most payments to corporations, governments, etc.) and/or the vendor should not receive a 1099.
    • Nonemployee Comp (NEC): Use this option when the payment to the vendor is for services rendered by a non-employee (e.g. cleaning services, professional services, etc.).
    • Rents Paid (MISC-1): Use this option when the payment to the vendor is for rents paid by you (e.g. building rents, etc.).
    • Attorney Settlement (MISC-10): Use this option when the payment is for legal services not in the regular course of business (e.g. such as a third party insurance settlement). Also, see Attorney Comp (NEC) below.
    • Royalties Paid (MISC-2): Use this option when the payment to the vendor is for royalties paid by you.
    • Medical Pmts (MISC-6): Use this option when the payment to the vendor is for medical and health care services paid by you.
    • Other Income (MISC-3): Use this option when the payment to the vendor is not reportable in one of the other 1099 types/boxes. This 1099 type/box might include taxable prizes to non-employees. However, this 1099 type/box should not include payments to vendors for services rendered by a non-employee - those should be included in Nonemployee Comp (NEC).
    • Attorney Comp (NEC): Use this option when the payment is for legal services in the regular course of business (e.g. regular legal fees, etc.).

See the IRS 1099-MISC & 1099-NEC instructions for in-depth rules and exceptions on 1099 types. Reviewing the 1099 type before processing allows you to generate the correct form for your vendors.

Reviewing General Settings

Before printing your 1099 forms, generate a report to verify vendor information and amounts.

  1. From the top menu, select Vendors.
  2. On the vendors screen, select Print then choose Report.
  3. On the Print Vendors screen, change the report type to Amounts List and check With 1099s Only.
  4. Setting the report Date Range:
    The appropriate date range depends on whether you have closed the 2024-2025 fiscal year.
    • If the 2024-2025 fiscal year is closed: Enter "Calendar Beg Mo-Yr" as 07-2025 and "End Mo-Yr" as 12-2025. In the "Options - Form 1099" menu (on the main menu), ensure "Include Vendor Calendar YTD Amts" is checked. This option includes year-to-date amounts from the closed fiscal year.
    • If the 2024-2025 fiscal year is not closed: Enter "Calendar Beg Mo-Yr" as 01-2025 and "End Mo-Yr" as 12-2025. In the "Options - Form 1099" menu, ensure "Include Vendor Calendar YTD Amts" is not checked. This prevents inclusion of partial year amounts from the current, open fiscal year.

This report lists vendors receiving 1099s and their reportable amounts, allowing you to confirm accuracy before printing the final forms.

Reviewing 1099 Options

It's important to review the 1099 Options before you print your forms or create the electronic file. Follow the steps below to access and review 1099 Options.

  1. In Budget, go to Options and select Form 1099.
  2. ID Information: Ensure the Name Control, Federal ID, and State ID fields are correct.
  3. Employer Information: Verify the accuracy of the information in the Employer Info section.
  4. Form Print Positions and Options:

    • Adjust the print positions (margins) as needed. Here are some starting values:

       1099-MISC
             		1099-NEC1096
      Left0.520.520.40
      Top Form 10.120.121.38
      Top Form 25.605.60 
      Top Form 3 7.50 
  5. Electronic 1099 Filing:
    • Check the File My Own Electronic 1099s box.
    • Enter your IRS-assigned Transmitter TIN, and Transmitter Control Code (TCC)
  6. Save your settings after making any changes.

Print 1099 Form Alignments

  1. In Budget, go to Reports and select Vendor 1099s in the top menu.
  2. On the Print 1099s screen, select the 1099 Forms Alignment print option.
  3. In the Parameters section, choose which 1099 form alignment to print, 1099-NEC or 1099-MISC
  4. Press the Align Forms button. (Print on plain white paper and then lay the paper over a 1099 form to check the alignment.)
  5. If needed, go back to 1099 Options and adjust the print values then print another alignment form.
  6. Repeat the process until the forms line up correctly.

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