About Federal 1099 forms

According to the IRS and Federal tax law, payments totaling $600 or more made to independent contractors over the course of the calendar year must be reported to the IRS. Sage 100 Contractor maintains balances for the 1099 reports regardless of the 1099 status assigned to a vendor record. When you include the vendor number on a vendor check or general ledger check, Sage 100 Contractor increases the 1099 balance for that vendor. If you later void the check, Sage 100 Contractor decreases the 1099 balance by the check amount.

On the 1099 form, the name appearing at the top of the Payee text box must correspond to the identification number in the Federal Id# text box. For sole proprietors, the federal government uses the owner’s social security number as the Federal Identification Number. Therefore, the owner’s name must appear above the business name on the 1099 form.

For vendors assigned status 3-Sole Proprietor, Sage 100 Contractor automatically prints the name from the Owner Name text box in the vendor record above the company name on the 1099 form.