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1099 for a one time vendor

Hello All

How do we handle 1099's for one time vendors? As far as I know this is not supported in SAP and needs to be done manually. Can someone please comment on this.

Thanks

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  • Best Answer
    Posted on Dec 01, 2011 at 05:12 AM

    It comes under GAP....not supprted in standard SAP

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    • Hi

      As you may be aware of the Businesses will need to fill out a Form 1099-MISC for persons, vendors, subcontractors, independent contractors, and others in the following circumstances:

      $600 or more per year is paid for

      u2022 cash payments to fishermen

      u2022 crop insurance proceeds,

      u2022 medical and health care payments,

      u2022 prizes and awards,

      u2022 proceeds paid to attorneys,

      u2022 rents,

      u2022 services (including parts and materials), and

      u2022other types of payments not covered by another information reporting document.

      $10 or more per year is paid for

      u2022 broker payments in lieu of dividends or tax-exempt interest, and

      u2022 royalties

      Reporting such payments is required if the recipient of the payment is not a corporation -- for example, when the recipient is an individual, partnership, a limited liability company treated as a partnership or sole proprietorship. Payments made to corporations are required in the case of medical and health care payments and in the case of legal fees paid to attorneys. Other types of payments made to corporations may be reported using Form 1099-MISC, but is not required.

      You will need to know whether the payment falls under any of the categories listed above for reportable payments, whether your payments to a particular recipient reaches the $10 or $600 threshold for reporting, and finally you'll need to know the exact amount you paid the recipient for the year.

      If your vendor's are falling under this, you should not create them as one time vendor

      Thanks and Regards

      Siva

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