FAQs - 1099

Q.  Do I file paper or electronically?

A.    For more information, please review IRS Publication 1220 at https://www.irs.gov/pub/irs-pdf/p1220.pdf. 

Q.  What selection criteria should I use when running my 1099s?

A.    None.  Unless you are running 1099s for a subset of vendors, you should not use any selection criteria when running BK99CB, BK99CC, or BK99BP.  BusinessPlus will automatically select only 1099 transactions for the present tax year specified on common code CK99/FILEINFO.  If you do use selection criteria, you must use the same criteria for both BK and OH.  However, note that the 1099 data for OH is based on the Vendor of Rec and the BKUPCD data is based on who a payment was disbursed to that may display a variance in totals.

Q.   How can I run a report for the previous tax year?

A.    Enter the 4-digit Tax Year into the field titled “Tax Year” to generate data 1099 data.  The following utilities are equipped within this feature:  BK99BP, BK99CB, BK99CC, and BK99VO.

Q.  How can we update the current tax year that is listed in the Year End 1099 Report when the report was run for a previous tax year?

A.    Report will continue to show the current tax year.  This is a known bug.  If intentionally generating/printing the Year End 1099 Report for a previous tax year (excluding BK99RP), the user will continue to see the current tax year displayed within the report’s last page until this bug has been addressed.

Q.   Why am I seeing a tail sheet message that year [previous tax year] is invalid? 

Example of warnings that will display when a previous tax year is used:

Warning - Tax year 2017 not equal to year in common code @@CK99FILEINFO 2019 Using tax year 2017
WARNING! ** CK99 FILEINFO Associated Number 1 MAY contain an invalid YEAR! Current Tax Year reporting should be 2019 Current Tax Year being requested is 2017

A. Expect to see these warnings in a tail sheet of BK99xx when the utility ran for a valid tax year.  No action is required from the user. Data was correctly generated for the tax year requested. Valid tax years range from 2000 to the current year. 

Q. Why am I seeing this message on the tail sheet? 

Invalid Tax Year 0000     
ABNORMAL TERMINATION

A. The value placed within the Tax Year field of BK99BP/BK99CB/BK99CC/BK99VO utility was not a valid tax year.  Rerun the utility using the current tax year or a previously used tax year, such as 2000-present.

Q. The report tail sheet says, **  WARNING  **  1099 report file is empty.

A.Review the BK99BP/BK99CB/BK99CC/BK99VO utility prompts for typos.  Check to see if the Vendor ID is the actual Vendor or Vendor of Record. Does the Vendor ID have a transaction with status PD within APOHUPTR within the tax year?  Check to see if the record exists within APOHUPTR with the 1099 Flag on the PEID within PEUPPE set to "D." Alternatively, check to see if the 1099 Flag is set to N, but is missing a Relate To code to flag for the 1099 document.

Q. How does BusinessPlus determine the dollar amount of the 1099?

A. The section "Identifying 1099 Transactions" cover the topic thoroughly. In general, there are three factors that BusinessPlus uses to analyze and determine what dollar amounts will print on the 1099s.

1. BusinessPlus, by use of PE ID Flags and Relate To codes, will determine if the payee's transactions meet any of the IRS specified amounts for each 1099 box.

2. If the Payee lives in a state that participates in the Federal/State Combined Filing Program, the additional dollar-printing threshold is used based on the individual state aggregate amount. (See common codes CK99/COMBxx, where xx is a sequence number; these common codes define the Dollar Criteria for State Reporting). It is the client's responsibility to contact the participating state's tax agencies to verify their criteria.

3. BusinessPlus will check to see if there is a user-defined dollar amount in Numeric Value (5) of common code CK99/FILEINFO. If there is a dollar amount listed, the system will use this dollar amount as the total dollar threshold amount for the 1099.

As shown in the following table, BusinessPlus evaluates all three factors described above rather than evaluating them separately. If a 1099 is not produced based on the Federal Exclusion Amounts, then a 1099 may still print if the Payee's state is in the Federal/State Combined Filing program and the aggregate total of all boxes exceeds that state's minimum or if the user-defined exclusion amount in the CK99/FILEINFO signals BusinessPlus to print the 1099.
The IRS 1099 exclusion amounts shown for the "Boxes" used for example purposes are:

• Box 1. Rents — Amounts of $600 or more for all types of rents.

• Box 3. Other Income — Other income of $600 or more required to be reported on Form 1099 that is not reportable in one of the other boxes on the form.

• Box 6. Medical and Health Care Payments — Payments of $600 or more made in the course of your trade or business to each physician or other provider of medical or health care services.

• Box 7. Nonemployee Compensation — Nonemployee compensation of $600 or more.

Determining Dollar Amounts

Q. How to know what code to place in the Med Desc of CK99/FILEINFO for which form?

A. Generating forms or a file involves setup that s unique per version (or Copy type) of the 1099 to create. The following table is an example.

1099 Printer Matrix:

Q. How often can I run the 1099 process in BusinessPlus?

A. You can run the process as often as you want. The process does not update data.

Q. How do I keep a vendor from receiving a 1099?

A. You can prevent a 1099 from being produced for a vendor by entering a "D" in the 1099 Flag field on the vendor's PE ID record, located on the P/E Information (PEUPPE) page, Vendor Tab.

Q. Why didn't I get a 1099 for a vendor?

A. There are several reasons why you might not get a 1099 for a vendor. Check these first:

• If the 1099 Flag field on the vendor's PE ID record, located on the P/E Information (PEUPPE) page, Vendor tab is set to "D", no 1099 will be produced for the vendor.

• If 1099 Flag field on the Vendor tab is set to "N", no 1099 will be produced unless the transactions in either the OH database or the BK database are tagged with Relate To codes.

• 1099 will not be produced if the vendor's total falls below the exclusion amounts for each box on the 1099. Per IRS Publication 1220, each state's filing requirements are subject to change by the state. It is the payer's responsibility to contact the participating state(s) to verify their criteria.

Q. Vendor has payments that are of a specific nature (e.g., all Rents or all Royalties) but no payments are for Non-Employee Compensation. What is the best way to flag the transactions?

A. On vendor's PE ID record, located on the P/E Information page, Vendor tab, place a "Y" in the 1099 Flag field and select the desired Relate To code in the 1099 Dflt. field (e.g., RE for Rents).

Q. A PEID is on the list to receive a 1099 but cannot find any payments for the PEID.

A. Note that within the AP system, the "Vendor of Rec" (Record) is used to conduct the 1099 processing, not necessarily the Vendor ID. Often the Vendor ID and the Vendor of Rec are the same PEID. However, if multiple parties are involved where disbursement is paid to a third party on behalf of a contractor, employee, or other, then the secondary PE ID will be within the Vendor of Rec field. Search APOHUPTR for the unexpected vendor name within the Vendor of Rec field and update as needed.
When using the copy and paste feature for child records within an AP set, and that set will pay multiple vendors, remember to review the Vendor of Rec field if to be sure the correct vendors will post.

Q. IRS has sent a notification twice in the last three years that the PE ID is reporting under an incorrect Tax Identification Number. How do I handle this in BusinessPlus?

A. Check the 2nd TIN Notice field on the vendor's PE ID record, located on the P/E Information page, Vendor tab. Request a new W9 from the vendor when receiving this type of notification from the IRS. If backup withholding is required, remove content from the SSN and TIN fields; the absence of this data triggers withholding, providing the common code CK99/2TIN-NOT is active.

Q. Why do some 1099s print "First Name Last Name" and others "Last Name, First"?

A. The program does not invert the name when defined as a Sole Name on the vendor's PE ID record, located on the P/E Information page, Vendor tab. You need to enter the Sole Name (first and last name) in the order that you want it to print.

Q. Why isn't the vendor's 1099 address correct?

A. When filing by paper, the IRS only wants one address line printed. BusinessPlus will use the last non-blank address line defined in vendor's PE ID record, located on the P/E Information page, Address tab. If the wrong address appears on the 1099, check to see that the last line on the Name and Address tab is the desired address. Refer to the Check Management guide or Bank Reconciliation guide for more information.

Q. How do I exclude a payment from a vendor's 1099-MISC?

A. Tag the transaction with a Relate To code of "EX" at data entry (e.g., APOHININ, APOHBTUB). If you did not use the Relate To "EX" code when entering an invoice into the OH database, you need to update the record in the database. Which database you update depends on whether you run 1099s from the OH or BK database. If you are running from both databases, then you must update both.
Common code CK99/RELATE03 must have "EX" defined in Associated Code (4) for BusinessPlus to exclude the payment.

• OH database Use OH direct update (APOHUPTR) to change the Relate To code field of any excluded transactions to "EX."

• BK database Use BK direct update (BKUPCD) to change the Relate To code of any excluded transactions to "EX."

Q. Why did two PE IDs get reported on one 1099?

A. If the 1099 process finds two or more vendors with the same taxpayer identification number (TIN) or social security number (SSN), only one 1099 will be produced combining the 1099 amounts for all of these vendors. The 1099 process will use the address where the last check was issued. When you run BK99CB, BK99CC, you will be notified in the warnings if you are processing multiple vendors with the same TIN/SSN. The warning will inform you of the Vendor PE ID that will be on the form and up to two additional PE IDs that share the same TIN/SSN. Running CDD report PE1099 can help in determining PE IDs that share a TIN.

Q. Where do I find the file created by BK99CC?

A. Any files created by BK99CC will be found in the admin/data directory on the App server.

Q. Why doesn't the OH and BK entry match?

A. Use CDD reports BK1022 and AP1001 to compare BK and OH to determine what is missing and why it is missing. Reasons OH and BK entries may not match include different reference numbers, address codes, or Relate To codes. Perhaps there is not a check in BK matching the check number referenced in OH. If you cannot find a valid explanation for the error, call BusinessPlus customer service.

Q. After running a 1099 process, I get the following message in the tail sheet:
"Payments with the following Bank IDs will be skipped as ePay Payments:"

A:The values exchanged using the Bank ID (also known as CKID or check stock) of an EPAY are excluded by design from 1099. The message is followed by the display of the CKIDs used for processing EPAY transactions.

Q. Job failed with the message ">>>> NOTICE: Another 1099 process is currently running."

A. Run one utility at a time. Run the next job after the Job Monitor says the first one is "Completed," and you can see the plus sign. The tail sheet explains why a job failed.
A second process cannot be executed until the first has completed. Check the job queue to see if the first process has completed.
If no 1099 jobs are running and you continue to receive this message, you can manually clear the process lock by accessing the NUUTVL screen and deleting the record with the following values:

• Subsystem: BK

• Process: 1099

• Reference: MISC

Q. What is the difference between the PE ID 1099 Flag and Relate To Codes?

A. If you have a vendor where all (or most) transactions are 1099 reportable, you should set the 1099 Flag field to "Y" on the Vendor tab of the PEUPPE page. Conversely, if only a few of a vendor's transactions are reportable, you should set the 1099 Flag field to "N" and use a Relate To code when you enter each invoice into the OH database.
If you set the 1099 Flag to "Y" for the PE ID and you have a transaction that is not a 1099 payment, you can use Relate To code "EX" to exclude that payment from the vendor's 1099 total.
BusinessPlus does not automatically assign Relate To codes to OH and BK transactions just because the 1099 Flag is set to "Y." However, if you have a payment for a vendor that is not the default 1099 transaction type for that vendor, you should use a Relate To code to assign the proper 1099 category for the payment.
If you forgot to tag a transaction with a Relate To code at the time it was entered into BusinessPlus, you can use the direct update function in Bank Reconciliation (BKUPCD), or Open Hold (APOHUPTR) to add this code.

Q. What is APOHRECC?

A. This report shows details about all 1099 transactions in the OH database that match your specified selection criteria. APOHRECC pulls from OH and uses the Vendor of Rec field, which typically defaults to the Vendor ID, who is the entity paid. Since BK data holds the Vendor ID of who was paid, there will be a variance of content when these two identities do not match.
APOHRECC is useful when you want to know which transactions are included in a vendor's 1099. This report will select only 1099 transactions for the tax year specified in common code CK99/FILEINFO. This report can be run for all ledgers or for only the ledger you are logged into. This report is not intended to be a replacement for BK99CB. Instead, it is intended to be a supplement report to the 1099 report in those cases where you need to know the detail OH transactions that are a part of the 1099 form. Therefore, after running the 1099 report, you could run APOHRECC and select by Person/Entity ID to see what detail transactions were included in the 1099 amount.
Note: If the Vendor of Record will never receive a 1099, consider updating its PE record in PEUPPE > Vendor tab > 1099 > 1099 Flag field to "D" so the vendor will "never" receive a 1099.

Q. What are Association Assignments?

A. The Vendor and the Associations tabs of the PE Information page allow for vendor-specific changes to 1099s with assignment codes.
Users do not require Associations other than the few listed below, such as hitting Box 15a using the Association for 409AXXXX or FATCA compliance.

Vendor Tab of PEUPPE

Customize vendor details for 1099 purposes within the Vendor tab. A few common settings are described within the 1099 section of PEUPPE's Vendor tab.

Associations Tab of PEUPPE

Associations are first defined with NU Common Codes and then added to the vendor's record within the PEUPPE Associations tab. Associations may be found within the Common Code Reference Manual by searching for the Code Category of "PEAS". The following are a few examples of supported Associations.

• Create the Association code(s) PEAS/XXXXXXXX within NUUPCD.

• Add the Association to the Vendor's record in PEUPPE, Associations tab. Select the code from the drop-down list.

• Update the various columns and then press <Enter> to save.

Q. How do I run 1099 data on multiple ledgers at one time?

A. You can specify multiple ledgers to be processed at the same time on common code CK99/FILEINFO. In the 3rd Associated Description field you can specify up to 10 ledger codes separated by commas OR specify all ledger codes by entering "LEDGER." If the field is left blank, then only the ledger code specified in the Preferences will be processed.

Q. How do I enter 1099 data if we "went live" mid-year?

A. If you converted to BusinessPlus mid-year and did not convert any Accounts Payable or Check History, or if you have a vendor that needs a 1099 but was not paid using BusinessPlus, you will need to manually input the relevant 1099 information into BusinessPlus. You can use the direct update function in Bank Reconciliation (BKUPCD) to enter a total for each vendor who needs the history amount added to their 1099. There are also two utilities (BKUTBK, BKUTZZ01) that can be used to upload these records.
To keep these transactions separate from normal BusinessPlus transactions, we suggest creating a dummy Check Stock ID. This will allow processing to continue with normal Check Stock IDs and will maintain a history of the 1099 entries that have been entered. To create a new Check Stock ID, define the NU Common Codes Category/Value of CKID/xx=Check Stock ID (e.g., "99" used as the Bank ID in the following example).

Enter Data for Bank Reconciliation (BK)

Use the following steps to enter the 1099 data for the Bank Reconciliation:

1. Use BKUPCD to enter the Bank Reconciliation direct update function.

2. Enter 99 in the Bank ID field. Enter an unused check number in the Doc Number field.

3. Enter CHK in the Document Type field.

4. Enter CX in the Check Status field.

5. Enter a check date within the tax year in the Date field. (e.g., 12/31/2019, or the day before you went live)

6. Enter MW or HW in the Check Type field.

7. Enter the amount of the Reference in the Amount field.

8. Enter the vendor's PE ID in the PE ID field.

9. Under the Details tab, enter the Invoice number in the Ref field and the Invoice amount in the Amount field.

10. Enter a valid Relate To code in the Relate To Code 1 field. Because the BK Only 1099 process only looks at the first field, do not enter the 1099 Relate To code in the Relate To Code 2 field.

Important: If you enter 1099 data using the method described above and then run 1099s from both databases, you will receive the following warning message: "Missing matching OH entry for the following BK entry"

If you choose to process the 1099s from BK only, then make sure there are no invoices in OH with multiple Relate To codes paid by a single check. The reason for this is that the BK database will only be populated with one Relate To code for the entire Invoice on the check.

Q. Where do I tell BusinessPlus what method I will be filing to the IRS and what type of printer/forms I will use for the recipient copy?

A. Common code CK99/FILEINFO is relevant for the overall processing of 1099 forms. One aspect of the common code is the value in the Medium Description, which is defined for two things (the 2-character code is required):
1. The first character of the Medium Description is for "What method you will use to file to the IRS." The first character: F = Electronic File.
2. The second character of the Medium Description is for "What type of printer/forms" you are using. Options for the second character: R = Laser, or Z = Z-fold forms on laser printer.
The other aspect is that the Med Desc field correlates with a special form commonly called SPFM forms. The following special forms are used with 1099 printing.  While you may have other SPFM99 forms defined on your system, these three forms are the only ones that are really used, based on common code settings that tell the system which format to choose:

• CK99/FILEINFO with a Medium Desc: "FR" will use the "SPFM99MR" special form. This format is used for electronic filing and uses pre-printed Laser forms.

• CK99/FILEINFO with a Medium Desc: "FZ" will use the "SPFM99MZ" special form. This format is for electronic filing and printing on Z-fold pressure-sealed forms, either pre-printed Laser forms.

Q. How do I use a form other than those supported by PowerSchool?

A. If you choose to use a 1099 form with a different format than one of the supported forms, you may need to alter one of the form definition files stored in the database. You can use the Special Forms Update function (SYSPUB) to edit the form definition file most closely matching your form. You may also request PowerSchool Services for a charge to assist.

Q. Why does BusinessPlus state the program was designed for a previous tax year?
"This program was designed for the 2024 tax year. This may or may not be valid for the 2025 tax year requested!"

A.The software has the year embedded into the program and this message will appear if you are not using the program written for the current tax year. The displayed year updates after installing the current year BusinessPlus Tax Release. Regardless, the report should still run correctly, and the forms should still print. However, your results may not be acceptable to the IRS if recent tax law changes affect you. This message is expected throughout the year as you verify your 1099 data and will no longer appear once you have installed the current year BusinessPlus Tax Release. Therefore, you must wait until after the BusinessPlus Tax Release is installed before you run your final 1099 forms.
The first run of a BK99XX utility will automatically update BusinessPlus with the needed updates for the current tax year. After this first run, review the tail sheet for content that may need review, such as missing State Code within a vendor's address or a duplicate TIN number was found, and more.
Once the program is installed, you will see a similar message for 2019 within the tail sheet (screen shot below). However, if the tail sheet is warning that the tax year is not current, contact PowerSchool Support.

Q. How to populate Box 15a?  

A.  Verify the common code PEAS/409AXXXX is defined where XXXX is the current tax year to be reported.  Then add that Association code to the vendor's PE record within the Associations tab.  Add a Value that will be the desired dollar threshold for reporting purposes as needed. Note that Box 15b will be populated with a Relate To code, typically "DI," per CK99/RELATE03. However, Box 15a relies on the Association code within the Association tab of PEUPPE.

Q. How to apply Federal Withholding to a vendor?

A. If you need to have Federal Withholding applied to a Vendor, there are two methods, via APOHBTUB or APOHININ. Please consult a BusinessPlus expert for best evaluation.

Method applied during Tax Year

First you need to enable withholding. This is done by setting up NU Common Code with a Code Category/Value of CK99/2TIN-NOT. Next, remove any tax ID numbers from the Vendor's PE record within PEUPPE, i.e., Social Security Number (SSN) or Tax Identification Number (TIN).
While these Tax ID fields are blank, withholding will be performed automatically by the system during the processing of disbursements within the APOH system, providing the common code CK99/2TIN-NOT is defined (also see common code CK99/WITHHOLD).  The funds withheld will also be reported in the Federal Withholding Box 4 of the 1099 form for qualifying vendors who meet the threshold for reporting miscellaneous income.  Stop withholding by applying a TIN or SSN to the vendor record within PEUPPE.

Method after Tax Year is complete

Method for withholding is to use a "Relate To" code "FW" for Federal Backup Withholding. This will tell BusinessPlus to place the transaction's value into the Vendor's 1099 form, Box 4. 
A way to globally send all Invoices to Federal Withholding Box 4 would be to choose FW as a Default within PEUPPE's 1099 Dflt field.  Be aware that the value of all transactions will be placed 100% into Box 4. 
To effectively use the "Relate To" code "FW" on a single transaction of an invoice, calculate the percentage to withhold and reduce the original transaction accordingly. Create a second transaction referencing this withholding amount and set the "Relate To" code to "FW."  
Note: If a letter was received from the IRS requesting withholding, the letter may likely state a percentage to withhold. With the configuration stated above, toggle the vendor's PE record with a checkmark in the PEUPPE, Vendor tab, 1099, "2^nd Tin Notice" box. This will place a checkmark in the 2^nd TIN NOT box within the 1099, Copy A.

Q. What setup is necessary to print Laser 1099 Forms?

A. There are three main steps for setting up to print on laser forms; all three steps must be coordinated.

1. Set up common code CK99/FILEINFO per the instruction above.

2. Verify Common Code CK99/CK666xx that will contain escape sequences to control the printing of the forms.

3. Define common code SYFC/SPFM99xx (where xx represents the 1099 form definition file you are using, e.g., SPFM99MR, SPFM99MZ, SPFM99NE, SPFM99NZ). This common code will allow you to adjust the vertical alignment of the form.

Additional Steps for Printing Setup
Set Printer to 60 Lines The printer should be set to 60 lines, either on the printer itself or in the spooler control software. If this still does not work after exhausting all other possibilities, then try 61 lines.
Helpful Hint When testing the forms, use selection criteria for Payee ID in BK99CC to print about five 1099s. This will help verify page breaks and spacing without printing all your 1099s forms. Getting the forms to print on the laser forms may take some trial and error. There are many variations available in the above steps so be prepared to try different setups before successfully printing the forms. 
Note: The characters _ /* indicates the "escape" keystroke combination. (UNIX clients using VI should press Control-V, then the escape _ key.)

Q. When printing duplex on 1099 Pressure Sealed forms the page feed is not correct?

A. Make sure that the common code SYFC SPFM99MZ or SYFC SPFM99NZ is present and setup correctly, need to have 1 in Associated Numeric Values, Value 1. Also the latest SPFM99MZ and SPFM99NZ definition file in SYSPUB.