1099 POWERLUNCH DUE DILIGENCE DURING THE YEAR 2 DURING THE YEAR - PowerPoint PPT Presentation

1099 POWERLUNCH

DUE DILIGENCE DURING THE YEAR 2

DURING THE YEAR MSBSD FOLLOWS THE SAME PRACTICE AS OUTLINED BELOW FOR ACCOUNTS PAYABLE VENDOR PAYMENTS, AS WELL AS DE-CENTRALIZED STUDENT ACTIVITIES VENDOR PAYMENTS • REQUIRE A SIGNED AND COMPLETED W9 FOR ALL VENDORS • PERFORM A TIN MATCH WITH THE IRS BEFORE ENTERING A VENDOR INTO THE ACCOUNTING SYSTEM • PAY FOR ALL SERVICES DIRECTLY TO THE VENDOR • MSBSD DOESN’T ALLOW FOR REIMURSEMENT OF SERVICES WITH PETTY CASH OR PAYROLL • PAY FOR ALL EMPLOYEE SERVICES THROUGH PAYROLL • COLLECT W9 INFORMATION FOR STUDENTS WHO RECEIVE NON CASH PRIZES/AWARDS THROUGHOUT THE EYAR • NO GIFT CARDS 3

DURING THE YEAR DECEMBER • REVIEW THE CURRENT YEAR 1099 – MISC INSTRUCTIONS SUBMIT A BULK TIN MATCH SPREADSHEET TO THE IRS . CORRECT ANY TIN • MATCH ISSUES BEFORE THE END OF THE YEAR VOID AND REISSUE STALE DATED CHECKS BEFORE THE END OF THE YEAR • PAY ALL APPROVED ACCOUNTS PAYABLE AND STUDENT ACTIVITIES INVOICES BY • THE END OF THE CALENDAR YEAR VERIFY THAT ALL ACCOUNTING SOFTWARE UPDATES HAVE BEEN INSTALLED • THAT RELATE TO THE CURRENT YEAR’S 1099 PROCESSES 3

1099 PROCESS 5

1099 VENDORS Form 1099-MISC, Miscellaneous Income File this form for each person to whom you have paid during the year: at least $10 in royalYes or broker payments in lieu of dividends or tax-exempt interest; at least $600 in: rents; services performed by someone who is not your employee; prizes and awards; other income payments; medical and health care payments; crop insurance proceeds; cash payments for fish (or other aquaYc life) you purchase from anyone engaged in the trade or business of catching fish; generally, the cash paid from a noYonal principal contract to an individual, partnership, or estate; payments to an adorney; or any fishing boat proceeds, In addiYon, use this form to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment REFERENCE: h<ps://www.irs.gov/uac/about-form-1099misc 3

1099 VENDORS CURRENT PRACTICES • 1099 SOLE PROPRIETORS WHO WERE PAID $600.00 OR MORE • 1099 LLC’S WHO WERE PAID $600.00 OR MORE • SOME LLC’S CAN BE CONSIDERED SOLE PROPRIETERS IF ONLY ONE MEMBER EXISTS. MSBSD DOES NOT ANALYZE TO THIS LEVEL. INSTEAD ALL LLC’S RECEIVE A 1099. • ALL PAYMENTS FOR MEDICAL AND HEALTHCARE • ALL ATTORNEY’S FEES/LEGAL SERVICES • STUDENTS WHO RECEIVE A NON CASH AWARD/PRIZE OF $600.00 OR MORE 3

1099- MISC FORM 4

1099- MISC FORM RECEIPENTS NAME LEGAL BUSINESS NAME ON LINE 1 DBA NAME ON LINE 2 (OPTIONAL) BOX 1 RENTS BOX 3 OTHER INCOME (PRIZES AND AWARDS) BOX 6 MEDICAL AND HEALTH CARE PAYMENTS (PAYMENTS FOR MEDICAL SUPPLY AND SERVICES) BOX 7 NON EMPLOYEE COMPENSATION (PAYMENTS MADE TO NON EMPLOYEE IN THE COURSE OF BUSINESS) 4

1099- MISC FORM BOX 7 1099’S (NON EMPLOYEE COMP) (THE MOST COMMON BOX) DEADLINE TO SUBMIT 1099’S TO VENDORS,AND THE IRS IS 1/31/2017 New filing date. Public Law 114-113, Division Q, secYon 201, requires Form 1099- MISC to be filed on or before January 31, 2017, when you are reporYng nonemployee compensaYon payments in box 7. Otherwise, file by February 28, 2017, if you file on paper, or by March 31, 2017, if you file electronically. The due dates for furnishing payee statements remain the same. REFERENCE: hdps://www.irs.gov/pub/irs-pdf/i1099msc_16.pdf?_ga=1.223631195.1752921684.1478738360 4

QUESTIONS? Alicia Campbell, MSBSD Alicia.Campbell@matsuk12.us (907)746-9225 4