11-NEW and Enhancements: Processing Printed and Electronic 1099’s

 In REAL/Easy BOS version 14.5, the 1099 forms, calculation setups, and reports have been adjusted for 2005 reporting. Samples of the 1005 1099 and 1096 forms are illustrated below. Following the illustrations, the location and description of the 1099 report and supporting reports are listed.

 

Above, sample 1099 for in-house agents.

 

 Above, sample 1099 printed for an outside broker.

 

 Above – sample 1096 for 2005. 

 

     The 1099 reporting options are found within “Standard Reports” on the “Agent” tab.  There are three commands:

• 1099/1096 Print – this command prints the 1099 copies on the 2-per-page 8-1/2 x 11 forms.

• 1099 Disk – this command creates the IRSTAX file for electronic filing.

• Create 1099 Spreadsheet – this command places the 1099 data and payee information into an MS Excel worksheet for import into third party 1099 processing/reporting programs.

        A number of supporting reports for staff editing, and both company and agent records should be used to provide details needed for verification and backup for tax reporting.

•  Edit Agent Data 1999 – this command prints the key information needed for 1099 reporting so the staff be sure that information complete.

• ·Summary 1099 Amounts – this command prints the 1099 total amounts for each agent including figures detailed from closings or checks and figures for 1099 history adjustments.

• ·Detailed Check Register – this command is perfect for the agents – it details all commission check gross pay, deductions, key award statistics, and totals deduction by deduction type.

• ·Vendor Data Edit 1099 – this report should be printed prior to 1099 editing, and after for records. It totals all 1099 amounts paid to brokers and other outside commission payees who require 1099’s. Included also are key mailing and ssn/ein information so the staff can be sure this information is complete.

• ·The “Office” level reports are handy for companies with multiple offices where the office staff is responsible for data completeness or for printing reports for distribution to the offices.

 Above, illustration of the run screen for printing 1099/1096.

      Note:

•  1099s can be printed for all or a selected agent, all or a selected outside broker, for any paid date range (or close date range)

•  1099’s and 1096’s can be printed office by office.

•  The 1099’s can be printed based on the close date or paid date. For close date – the commissions from closed sales are totaled, for paid date – the commissions from paid fees are totaled (check printed).

•  The 1096 form can also be printed – this form includes the total 1099 amount.

In version 14.5, a separate tab within Company Information is accessed to adjust the 1099 calculation. The above options can used to adjust the calculation of the 1099 amount to be reported for the agents.

 

If no option is checked, the 1099 commission amount is the gross earning paid to the agent. This is the amount calculated or entered within each sale transaction on the Agent Commission Entry “CA4” form.

Changes to the “Edit Agent Data 1099” report.

This report should be run prior to 1099 printing to help insure that the agent records are complete. Each 1099 requires all agent address information including state and zip code. Further, the agent social security number or EIN (for incorporated agents) is required.

The report format for 2006 has been changed help with the edit. The state and zip are placed in columns and a column following “STABBR?” has been added. This column indicates if the state abbreviation is “ok” or if not found an indication of “valid?” is printed.

     If the new agent incorporation fields are utilzed in agent setup, a second line will print showing the assignments of:

• The incorporation date

• The incorporation name

• The corporate EIN/Federal ID.

Note that these items are can be used by companies when an agent incorporates so that two 1099’s can then be printed for the same person. In the above example, two agents have this setup. Note that all three items must be entered to print two 1099’s. If one is missing, only one 1099 will be printed.  Further, the incorporation name can also be printed on commission checks.

 

Notes for using the Incorporation Items:

For agents who have been working as independent contractors and decide to incorporate, three new items have been added to the agent setup to assist. Shown above are the items:

• Agent Incorporation Date

• Agent Corp FedID

• Inc. Name for Checks

By using these items it enables the company to have the previous social security information and also to print the incorporated name on commission checks issued after the incorporation date. Further, for the year the agent incorporated, two 1099’s will be issued by REAL/Easy.

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