To set up a market center service provider as a Vendor in AccountEdge, be sure to follow the steps provided by AccountEdge in their Knowledge Base: Getting Started with Cards.
Individuals and businesses providing on demand or custom services and sometimes small local businesses fall into the category of Vendors who should receive a 1099/T4A from the market center; utility providers such as power, water, gas, telephone, internet generally do not require a 1099/T4A from the market center. For the first group, market centers are responsible for tracking the invoices and payments towards providing a 1099/T4A to those service providers. Some examples of these providers are (not intended to be exhaustive)
- office cleaners
- handy services
- painters
- graphic artists
- local custom item providers (like vinyls on Yetis)
- legal advice/review with an attorney
When Do Associates Need a Vendor Card for 1099s?
It is very important that when you pay Associate commission checks in AccountEdge (from WinMORE postings) that you do not pay those with an AccountEdge Vendor card marked to track 1099 income. WinMORE takes care of tracking all business it posts for 1099 purposes.
The only amounts you should be tracking for 1099 income in AccountEdge for your Associates are amounts that do not flow through WinMORE. For example, training fees, BPO fees, Home Warranty Rebates – these may not be posted in WinMORE, yet they do count for 1099 income, so a Vendor Card for the Associate in AccountEdge must be used for accounting for the 1099 reportable income for your associates for these items.
How to Set Up a Vendor Card for 1099 Reporting
To set these vendors up to appear on the Vendor 1099/T4A report from AccountEdge, be sure to set up the Buying Details tab in the Vendor card to reflect the following:
- Enter their Tax ID Number – require a copy of their W9/BN for your own tax files and document retention requirements
- In the “Report Payments on 1099/T4A as” section, select “Other Income” for most vendors
NOTE: Consult with your CPA and/or 1099/T4A provider to ensure that each vendor who should receive a 1099/T4A is coded correctly
Comments
0 comments
Article is closed for comments.