1099 Vendors

1099 is a United States tax form used for, among other purposes, reporting payments made to Independent Contractors. The Pentagon system allows you to designate certain vendors as independent contractors and to pay them via 1099 forms. This offers you the opportunity to work with new vendors/contractors without establishing contracts and lengthy agreements.

1. Select the vendor from your list and go to the Financials tab. Click the Edit button and check the 1099 flag, then select from the list which category of service you intend to pay them for. The categories are predefined based upon IRS regulations and are listed below for your reference.
1. Rent
2. Royalties
3. Other Income
4. Federal Income Tax Withheld
5. Fishing Boat Proceeds
6. Medical/Health Care Payments
7. Non-employee Compensation
8. Substitute Payments in lieu of Dividends or Interest
9. Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale
10. Crop Insurance Proceeds
11. Excess golden parachute payments
12. Gross proceeds paid to an attorney
13. State tax withheld
14. State income
2. The next step would be to create a Miscellaneous Invoice for your 1099 vendor. When filling in the invoice, check to be sure that the 1099 category is the proper one.
3. Once the invoice is complete and approved you may navigate to the Financials Menu and head to the 1099 Forms section.
1. “List Vendor With 1099 Forms” will show you a searchable list of every vendor that is set up as a 1099.
1. Upon selecting a vendor, you will see a list of all the 1099 forms that vendor has available as sorted by fiscal year and company. If there are none present, simply press the Add+ button. To view an existing form, highlight the desired fiscal year and click 1099Form.
2. The following is the 1099 form as it appears in Pentagon. Here you may review all of your 1099 invoice totals for that particular vendor. Pressing the Recalculate button will automatically tally and display the values in each category from the invoices in the system. If you wish to manually edit the amounts, you may do so here as well by typing directly into the fields. [image pending]
3. The Print button will allow you to print you choice and style of the form.
4. Recalculate 1099 Forms for current fiscal year will update all of the outstanding 1099 vendors. When doing so you will receive the following confirmation window. [image pending]
5. Clicking OK will carry out the recalculation.
   
   NOTE: Running this process will eliminate any manual entries you have made and will recalculate solely from the invoices.
2. “Create 1099 Forms For The Current Fiscal Year and Recalculate” will first create the vendor forms for any vendor that does not have them already and then recalculate them.
   
   A finished 1099 Form printed from Pentagon will appear as thus: [image pending]