Adjusting the 1099 Agent Amount Reported

 Most companies report the agent’s “MISC 1099” earnings based on the total gross commissions paid for each transaction. This is the amount shown below as the “Total” of the list and sell side agent gross commissions.  When printing 1099’s in REAL/Easy, this is the “default” method.

A number of companies have indicated that they adjust this gross commission up or down based on their commission contracts with the agents or other criteria they have in place. As illustrated above, this could involve one or more of the additional entries made for a commission including the transaction deduction for the admin. fee or the transaction fee, a payment of a bonus, or the deduction of an override.

The screen above is used to prepare agent checks. The operator enters the amount to be deducted from the agent’s check drawing down the agent account balance. The 1099 adjustment setups will allow this amount to be subtracted from the agent gross commission for 1099 reporting purposes.

Normally, the Agent Gross commission is summed for 1099 reporting. If any of the adjustments illustrated above are desired, they can be indicated in the Company Setup “Bank/Revenue” tab above.

The adjustments for 1099’s affect reports produced by the above three commands:

• 1099/1096 Print (printing 1099’s for agents and government agencies)
• 1099 Disk (magnetic reporting)
• Create 1099 Spreadsheet (for using 3^rd party services)

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