SPECIAL NOTE: If you have over 250 forms to file, you must submit them electronically to the IRS.
Use this task list as you complete each step.
|December||Decide if you will contract with an online company or print your own forms. If you print your own, you will need software to upload the 1099 data to and the forms to print on. (Get counts from WinMORE and AccountEdge to calculate the total number of forms needed—only required if you print your own forms)|
|December||Print the WinMORE “Year End – Associate 1099 Proof” Report|
|December||Do the WinMORE Year End – End of Year Update|
|January||Review your prior year (PYYY) AccountEdge data file 1099 and verify that the Fiscal Year is PYYY. Verify Vendor payments for accuracy, make any necessary corrections and print|
|January||Print and carefully review the WinMORE “Year End – List Recipients” report.|
|January||Correct any data errors in WinMORE “Year End - Edit Recipients.”|
|January||Print the AccountEdge 1099 forms or add the data to your WinMORE exported data for upload to the service of your choice.|
|January||1099 Data Export|
|January||Print and Mail (service of your choice)|
|January||Complete the Form 1096|
|January||If applicable, Market Center Ownership Changes in PYYY|
|January||If Payroll is done in house with AccountEdge, complete the IRS Form W-2 & W-3|
IRS Form 1099
DUE DATE: January 31st.
An IRS Form 1099 must be sent to all service non-incorporated entities that are paid $600 or more within the tax year. It is not necessary to send a Form 1099 to an incorporated entity, however it was decided by the IALC to produce a Form 1099 for all whether they are incorporated or not.
- WinMORE exports data for the Form 1099 for all Market Center associates and co/outside brokers paid commissions by your Market Center during PYYY. The IALC Council voted for M.O.R.E. to produce a Form 1099 for ALL associates whether they are incorporated and/or if the associate was paid less than the 1099 minimum of $600. Due to this decision, a Form 1099 will be produced for ALL associates who had closings in PYYY. This applies strictly to data exported from WinMORE. Other systems used by the Market Center may not print these 1099s.
- AccountEdge produces the Form 1099 for all non-incorporated service vendors that are paid $600 or more within the tax year. It is very important for the AccountEdge Vendor Card File – Buying Details to include the “Tax ID Number” and “Report Payments on 1099 as: Non-Employee Compensation.” If you forgot to enter this information, you can do that before processing the 1099s and AccountEdge will immediately know to include the vendor when generating the 1099s.
- Profit Share Form 1099s are produced by KWRI. The “Year End - Profit Share Confirmation” window is not used at this time since it was used in the December transmittal to report the correct TIN and addresses to KWRI. If these corrections were not made prior to transmitting December PYYY, please notify International at email@example.com immediately.
NOTE: Ensure you are in compliance with your state and local brokerage regulations in regards to reporting of 1099 income.
- Determine which service (or in house) system you will use to print your 1099's.
- Open WinMORE and print the Year End - Associate 1099 Proof Report. Enter any necessary corrections into Enter - Associates and click “SAVE.” If this report prints with the report headers only and no Associate information, this indicates you have no errors.
- No nicknames or special notes (quotations, parenthesis, etc) are allowed in the First Name or Last Name fields in Enter – Associates.
- Very important! Do the WinMORE Year End – End Of Year Update. If it produces a report of missing information (Co-Brokers or Outside Brokers), this must be corrected under Enter – Co-Broker or Enter – Outside Broker before WinMORE will allow you to proceed. Once corrected, return to Year End – End of Year Update to re-run. You must see “Process Complete” displayed before the EOY update is successfully completed.
- NOTE! The Year End – End Of Year Update “Erase all Adj/Other Commission amounts”, when checked, deletes all Adjustments made in the Edit Recipients records.
- Note: You should only do this the first time you run this report.
- If your Market Center has 250 or more 1099s to file, it is necessary for your Market Center to file Form 4419 “Application for Filing Information Returns Magnetically/Electronically” and the IRS will assign your Market Center a TCC number used during the electronic filing process. If your Market Center obtained an IRS TCC number in a prior year you do not need to request this number again. Search the IRS website for a copy of this form (Form 4419).
- In AccountEdge, open the data file for the PYYY Fiscal Year named PYYYKWR_MC[MC#].MYO and click Setup – Company Information. Make sure the Fiscal Year displayed in the lower-right is PYYY. If it is not, please contact MCASupport@kw.com for assistance.
- Click Setup - Payroll and 1099 Information and make sure that "The Current Payroll & 1099 Year" displayed is PYYY. You will not update the PYYYKWR_MC[MC#].myo file with the CYYY Tax Tables, however, you will need to have the most up-to-date PYYY tax tables loaded, even if your Market Center does not process payroll in house.
- Click Command Centers - Purchases & Payables - Print 1099s and 1096s - select the desired form, federal tax ID and year - then click Ok. Make sure that the correct “Federal Tax ID #” is displayed. Print the AccountEdge 1099s to blank paper to be added into WinMORE later. When asked if you want to print the Form 1096, click ‘OK’. Make sure the 1099s include all service vendor payments to non-incorporated entities that total $600.00 or more during PYYY; the IRS requires that a Form 1099 be issued for them.
NOTE: Review your list of AccountEdge card files with your CPA for any other types of 1099 Form payments you have made during PYYY, i.e. attorney, rent, or other payments, to ensure that you print these forms from AccountEdge rather than WinMORE.
2) List Recipients Report
- In WinMORE, click “Year End – List Recipients” and choose the layout of the report. Choose the one you want to print and click OK. Select “Send the report to the Printer” for landscape/legal paper.
- Review this report VERY carefully looking for incomplete information or obvious errors. The IRS will fine you for incomplete Form 1099 information. Enter corrections into the Edit Recipient record as well as the appropriate Enter - Associates, Outside Broker and/or Co-Broker records.
- Make sure all State 2-character abbreviations are correct. Use this link: https://about.usps.com/who-we-are/postal-history/state-abbreviations.pdf to print a list of them.
- Make sure all zip codes are correct. Use this link, http://www.usps.com/zip4/welcome.htm?from=global&page=2132findzip, for an easy way to look up the Zip code for any address.
- Make sure that the “TIN Type” is correct. 1 = Employer TIN i.e. 98-7654321 and 2 = SSN i.e. 987-654-4321.
- Make sure all street addresses are complete.
3) Edit Recipients
- The “Year End - Edit Recipients” records list all necessary 1099 information. These records can be edited as necessary. You will enter new Recipients into WinMORE under Year End – Edit Recipients using the AccountEdge blank paper 1099s information printed from AccountEdge (See Preparation Step 8 above). You can also enter new Recipients if you find an associate or broker Recipient record that is using an incorrect TIN so that you can zero out the wrong Recipient 1099 amount and enter the same amount in the newly created correct Recipient record.
- Below is a list of each field in the “Year End - Edit Recipient” record. Please carefully read the Edit Recipient Field Descriptions on the next page to learn how to use this feature.
- If one of your incorporated associates is adamant they do not wish to receive a 1099, since the IRS does not require 1099s be issued to corporations, you can enter a negative amount in the “Adj/Other Commission” entry that will zero out the “Form 1099 Amount” and not print a 1099 for this incorporated associate. This is ONLY available to incorporated Associates with Articles of Incorporation on file in the Market Center.
FIELD DESCRIPTIONS Tax ID 9 digit Tax ID # either EIN or SSN Full Name Legal IRS name of the person or entity Address, City, State, Zip Code Street Address, City, 2 character State abbreviation, 5 digit Zip Code Tax Status Either Corporation (TIN Type 1 EIN) or Individual (TIN Type 2 SSN) Profit Share 1099 from KWRI (For Associates only) Lists the Associate ID#, Name, and PS 1099 amount as reported to KWRI in your December transmittal. All PS 1099 Confirmation was done in the December transmittal. If you have any late-breaking changes, please contact finance@KW.com ASAP. Commission 1099 from the Market Center (For Associates only) Lists the Associate ID# and Name Associate Commission (For Associates only) Lists the Associate’s Commission 1099 amount Outside Commission (For Outside and Co-brokers only)
Lists the Outside or Co-broker’s 1099 amount
For corrections and adjustments to either an Associate’s and Outside or Co-broker’s 1099 amount and adding in AccountEdge 1099 vendor information.
Enter an adjustment here if a correction is required for errors in an existing Recipient or if you are adding in a new Recipient record for an AccountEdge 1099 vendor.
NOTE: If there is a Recipient with an incorrect SSN or EIN please go to the Enter Associates or Enter Companies record to correct the SSN or EIN. Then you can zero out the incorrect SSN or EIN 1099 Recipient and change the correct SSN or 1099 Recipient: In the incorrect TIN Recipient record, enter a negative amount in this field to zero out the “Form 1099 Amount” for this Recipient. In the correct TIN Recipient record, enter a positive amount in this field so that the “Form 1099 Amount” for this Recipient is now correct.
Form 1099 Amount Total Associate or Outside/Co-broker 1099 amount after adjustments are booked in “Adj/Other Commission.” This is the 1099 amount that will print in Box 7 of their Form 1099. 1099 data for all other 1099 types must be obtained from AccountEdge Outside 1099 Minimum The WinM.O.R.E. Setup – System Default for TEN99_MINIMUM. Currently this amount is $600.00. Changed Date
Date changes are made to this record
Corrected (Print the X on the Form)
Used if the 1099 is changed AFTER the Form 1096 and 1099s are filed with the IRS. Click this field before printing the corrected Form to the IRS per IRS requirements.
Associate DA’s (For Associates only)
Click this button to print or view a list of the 1099 amounts for each PYYY DA for this associate.
Outside DA’s (For Outside and Co-Brokers only)
Click this button to print or view a list of the 1099 amounts for each PYYY DA for an Outside or Co-broker.
Do not use the PS Confirmation window at this time.
4) Print IRS Forms 1099
Now that all information in the Recipient’s records is verified and correct, it’s time to export your 1099 data where it can be used to import into a third party service.
5) 1099 Data Export– US Only
If you use any software other than WinMORE to prepare your 1099’s you can export the 1099 data.
Click “Year End – 1099 Export” in WinMORE and the following screen displays.
The file is saved to the \WINMORE3\MDAT\SEND folder where it can be used to import into a third party 1099 service. (Additional formatting may be required).
If your Market Center uses Sovos for processing 1099s, they have training videos available about importing and other functions within that platform. You can also access and download the excel template that is linked at the bottom of this article to use for importing your WinMORE data.
If you encounter any issues you can contact their customer service at 1-866-890-3971 Monday-Friday, 8AM-8PM EST.
Follow the directions of your 1099 service provider for uploading the data and preparing 1099's.
6) Market Center Ownership Changes in PYYY
If your Market Center changed ownership in PYYY, follow these instructions:
- Run a “Print – DA List – Sub-total by Agent Name & Tax ID – by Closing Date and Street Name” – for the date range in which the first PYYY owner owned the Market Center. Immediately print the same report for the 2nd owner for the appropriate date range.
- Provide the first owner with a copy of their report so they can do 1099s for the time period in which they owned the Market Center. Keep a copy of this report in your PYYY 1099 file for your records.
- Using the report run in Step 1 above for the 2nd or existing owner, open “Year End – Edit Recipients” and change the 1099 by entering the appropriate negative amount, for closings that occurred when the Market Center was owned by the previous owner, in the “Adj/Other Commission” field so that the “Form 1099 Amount” equals the amount shown on the DA List for the existing owner. For example: The Edit Recipient record shows $135,000 for the “Form 1099 Amount” but the existing owner’s DA List shows $100,000. Enter a -$35,000 in the “Adj/Other Commission” field so that the “Form 1099 Amount” displays the correct $100,000 amount.
- When all “Year End - Edit Recipient” records are corrected, print a “Year End - List Recipients” report and carefully ensure that the report matches the existing owner’s DA List printed in Step 1.
7) IRS Form W-2–US Only
If your Market Center has a payroll service produce the W2 forms and file them with Form W-3 to the Social Security Administration, you do not have to do this step.
For printing PYYY W-2’s, make sure you open the company data file for the PYYY Fiscal Year named PYYYKWR_MC[MC#].MYO. Verify the fiscal year by clicking Setup – Company Information. Make sure the Fiscal Year displayed in the lower-right is PYYY. If it is not, please contact MCASupport@kw.com for assistance.
Follow the directions for printing W-2’s as documented by AccountEdge support in their knowledge base located at https://www.accountedge.com/knowledge-base/