Accounts Payable Headache Remedy: Easing the pain of 1099 compliance!
Those tasked with the job of processing 1099's know the pain of compiling all the necessary information to comply with state and federal reporting regulations.
If your business handles multiple accounts with a variety of vendors, it takes a substantial amount of time for your accounts payable department to process the information required and submit the forms in a timely manner. 1099 processing is especially challenging for businesses using multiple payment systems in multiple departments. Insurance carriers, for example, often have many systems capable of issuing payments.
Is there anything available to streamline 1099 processing for companies in this situation?
Unlike issuing payments from just a single AP system, companies that have multiple application silos producing payment requests will benefit from a centralized disbursement hub. Prelude's PayPilot® disbursement hub solution includes a 1099 Processing module which works well for this purpose.
Because PayPilot integrates seamlessly with any core system you are currently using that originates the payment request, it coordinates information across your entire payables environment over your enterprise. This means that information concerning vendors to whom you owe 1099s can be accessed easily and quickly.
Rather than a painstaking, manual approach to gathering the information needed for 1099 processing, PayPilot provides a set of exports and reports which clarify and streamline the process.
As easily as PayPilot seamlessly integrates with the carriers core systems, it also can interface with 3rd party 1099 solutions, like 1099 Pro and Sovos (Convey). All of the foundation work begins withPayPilot for more efficient handling. For a listing of vendors to whom you owe 1099s, PayPilot can provide an export that can easily be handed off to your 3rd party 1099 solution. Similarly there are two reports available. The first report is a summary of all payees whose total payments for the reporting period meet or exceed the specified legal 1099 reporting threshold. Additionally, a more detailed report is available, which lists both the payees and their associated tax ID numbers. This report is invaluable to accounts payable departments, as it aids in the quick identification of information needed to fully comply with state and federal regulations. It also provides a quick way to find gaps in any information needed, such as tax ID numbers. Having this information readily available enables your payables staff to quickly reach out to any payees from whom more information is needed.
The 1099 Processing module also generates reports on non-reportable payables amounts. With the detailed version of this report, distinction is made between whether the payment itself is not reportable or the payment is reportable but the total payments for the payee for the period is under the 1099 threshold amount.