Can someone explain if the suspense entries have any effect on the income numbers that get reported on the 1099s?

If you do not "Include Suspense Activity" when you build the 1099s, then the 1099s will show all money earned even if it is in suspense and never was paid to them. If you mark the option to "Include Suspense Activity" then the 1099s will not include any amounts that someone earned unless they were paid for those amounts.

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