A message that "The selected year has not yet been approved for 1099 processing by SherWare" appears when creating the 1099 file?
You need to update your software to the latest version with a patch. A more detail explanation is listed above in the "Create 1099 File" section.Is a video tutorial available?
Yes, a pre-recorded 1099 tutorial is available at www.sherware.com. You will have to log-on, then click on "Search Now" under the "Video Tutorial" Heading. This tutorial was created for the 2010 1099s. A couple options have been added since then, but this will still give you a good overview of the process.A 1099 was not created for an owner?
Make sure the owner is marked to get a 1099 on the options tab of the owner information window.
Make sure the owner received enough money to cover the 1099 minimum amounts specified in the Misc. Preferences for the respective owner type.
If the owner has a program associated with his interest then look at the respective program on the Program/Partnership Information window and verify that the program is marked to receive 1099s.A 1099 was not created for a Vendor?
Make sure the vendor is marked to get a 1099 on his record in the QuickBooks Vendor center. If you have not synchronized since marking this option then you will need to do so. After synchronizing, build the file again.
Make sure the vendor was paid enough money to cover the 1099 minimum amounts specified in the Misc. Preferences for Working Interest owners. The 1099 will be based off of printed checks.Will changes to the owner/vendor information window affect the 1099 after the 1099 is created?
No, any changes made to the setup windows in the software will not affect the 1099 unless it is recreated.
What type of form is required in order to print 1099s and where can we purchase them?
They will print on any of the standard 2-to-a-page laser forms for 1099s. They can be purchased at most office supply stores. You may also consider the 1099 Misc-Replacement form from our system, which can be printed on regular paper. These would be sent to the owners, and you'd still need to print off the red copy for the IRS on the regular forms or submit the file electronically.Do the 1099s have to be filed electronically?
If you have less than 250 1099s then it is optional. If you have more than 250 1099s then you are required to file them electronically. SherWare will create the electronic file that you need to submit using the FIRE system. Can SherWare File my 1099s for me?
Yes, SherWare can file your 1099s electronically for you for a fee. Contact SherWare if you are interested in this service. A more detailed explanation is listed above in the section titled "Electronic Filing Service Provided by SherWare".I printed the 1099s but it just printed a bunch of numbers and names and didn't have all of the formatting?
The 1099s are designed to print on the pre-printed forms. You will need to obtain some pre-printed forms then print onto them. Or you can print the 1099 Misc replacement form to send to your owners as it will include all of the formatting. You will still need the pre-printed forms if mailing them to the IRS.The 1099 total does not match the total shown on another report?
Many of the reports pull information differently within the software. Some include suspense while others do not. Some report on production periods while other report on accounting dates which can lead to some overlap. First you need to make sure that you are running the reports with the same criteria and that both reports are showing the same thing. The 1099 reconciliation report is the only report that will exactly match up with the 1099 every time.The vendor 1099 only reports as Nonemployee compensation but some of it should be rents?
We do not have a way to track what vendor amounts should be reported as rents. After the 1099s are created you can edit the 1099 and manually split up the amount into each field if needed.Manual checks written are not included on an entity's 1099.
We do not have a way to determine what type of revenue a check should be reported as so we leave it off of the 1099. When you create manual checks you will need to do one of the following
Add the amount of the check on the owner history window. 1099s are based on history so manual updates to the owner history will be reflected on the 1099.
Keep track of any manual checks and then manually update the 1099s after they are created.Will an owner's balance that was cleared from suspense with the "Clear Owner Suspense" utility affect the 1099?
Yes, any amounts cleared from suspense will be moved to history and will be reported on the 1099. Even if you did not disburse it for that owner. The cleared amount will be included on the owner's 1099. If that does not suit the situation that you have then you will need to make a manual entry on the owner history window to offset this, or manually adjust the 1099s after they are created.Can a 1099 reconciliation report be printed for owners under the 1099 minimum?
No. The 1099 reconciliation is created from the information on the 1099 detail file. If a 1099 was not created for an owner then the detail would not have been created either. You can view the Yearly Disbursement Summary to see what was allocated to this owner.Why do records from a prior year appear on the update 1099 and update 1099 detail windows?
Once the 1099s are built for a given year they will be visible on these windows. They will not be removed unless you rebuild the 1099 file for the given year which will replace those records with new ones for that year. All past years can be seen on this window so that you can still go back and review/audit/reprint the 1099s for prior years.The "Rents" field is missing from the "Update 1099 Detail" window and 1099 reconciliation report?
SherWare does not track Rents by well, so we don't report them on the detail window or on the reconciliation report.Can vendor 1099s be classified as something other than nonemployee compensation?
No. we do not have a way to track how each expense gets classified for 1099 purposes.
1099 FAQ
