How to Process 1099 Forms

Follow this instruction guide to print 1099 forms for AP vendors and create electronic submission files from the Financials Management program.

If your organization uses the Horizon Section 8 program, most organizations pull Section 8 1099 information to the same area as the Accounts payable 1099 information.  This will allow you to print both AP and Section 8 1099 forms together.

VIDEO: How To Process 1099 Forms

Important 1099 Processing Notes

  1. When to start processing?
    1. Typically, you may start your 1099 Process before receiving the Horizon year end software update.  This would include Vendor W9/1099 Maintenance.
    2. Because the 1099 output requirements often change from year to year, you need to wait for the Horizon year end software update to be completed before PRINTING FORMS OR CREATING SUBMISSIONS FILES.  The update will include the output requirements changes. If you print/submit files prior to the update, they may be rejected.
  2. Section 8 1099 Data
    1. You must pull using the Section 8 Version 16 program with the menu ribbon and start page.  
    2. Do not pull using the old Section 8 Version 11 program.  It will not work correctly.    
  3. If you have AP and Section 8 1099 data, Horizon recommends that Section 8 data is pulled first, verified/corrected, then add AP data.
    1. CAUTION:  1099 data is often stored in the same file, both AP and Section 8 information will combine unless different values in Add to Reporting Group are used.  
    2. Section 8 and AP staff should coordinate who will:
      1. Run Remove ALL 1099 Information in Work File before pulling to delete last year's information
      2. Add to Work File
    3. Most steps can be run for either Financials or Section 8 with a few exceptions:
      1. Accounts payable data pull must be done in the Financials Management Module.  
      2. Section 8 data pull must be done in the Section 8 Module.    
      3. Sending Landlord 1099s to DocumentViewer can only be done in the Section 8 Module.   
  4. If you have multiple companies set up, Horizon recommends that all 1099 information for the same Federal ID, state ID are pulled into one company.
    1. If there are multiple companies in Horizon, but these are for the same Federally recognized company that has one Federal ID, combine this information into one place by using the Add to Company option.
  5. IMPORTANT: Before pulling vendor information, make sure to complete the Vendor W9/1099 Maintenance steps.
    1. Verify that all vendors that need a 1099 have the Federal ID complete and not blank. 
    2. If a vendor uses a Social Security number as the Federal ID and their personal name not a company name, make sure their name is entered in the fields for Last, First, Mid, and Suffix.
      1. This is not required if submitting paper copies to the state of Pennsylvania. 
      2. Most Horizon customers are now required by Pennsylvania to file electronically. This step must be completed.   

Step 1: Vendor W9/1099 Maintenance

This grid will show information from the Vendor Master that is used to create 1099 data.  Review and update the vendor data before pulling 1099 data for this year.  Any updates to vendor information will also update the Vendor Master.

NAVIGATION: TOOLS menu > Vendor W9/1099 Maintenance

  1. Tab through the grid to review/edit information.
  2. In the 1099 column, review the vendors that have the checkmark; these vendors will create 1099s when pulled.  
  3. If the 1099 column is checked, the vendor must have the Federal ID entered and the ID Type selected.
  4. Add/update the Name Control; this information can be entered later as well.  
  5. 1099 Name may be changed as needed.  
  6. Last Name, First, Middle Fields (May be required for PA State Electronic file)
    1. If the ID Type is Social Security Number and the Vendor Name is a person’s name not a company name, then these fields must need to be completed for the PA state electronic submission.     
  7. Click APPLY.

Step 2: 1099 Preview Report

The 1099 Preview Report will show all the vendors who are selected in the maintenance grid and the amounts to be pulled for the date range entered.  You can re-run this report as many times as needed to verify the information that will pull into the 1099 forms.  This will NOT pull the amounts into the edit area to print 1099 forms. 

NAVIGATION: UTILITIES menu > 1099 Preview Report

  1. Select a pay group or leave blank for all pay groups
  2. Start Date: Enter the beginning of the year you will be printing the 1099s for, i.e., 01/1/2021
  3. End Date: Enter the last day of the year you will be printing the 1099s for, i.e., 12/31/2021
  4. Preview/Print the report
  5. Go back to the Vendor W9/1099 Maintenance grid to update/correct any vendor information.

Step 3: Pull 1099 Information 

This utility will pull the payment information for all vendors that are marked to send a 1099.  Review more information on how this information is pulled.

 NOTE:  If you process Section 8 data, Complete the first Pull in the Section 8 Module.  When completed and verified information Complete the second pull from the Financials Module.

NAVIGATION: UTILITIES menu > Pull 1099 Information

  1. Starting date:  Enter the beginning of the year you are reporting for, i.e., 01/01/2021
  2. Ending date:    Enter the date for the end of year you are reporting for, i.e., 12/31/2021
  3. Vendor Pull Options. The vendor pull option depends on where you have the information entered in the Vendor Master for your 1099.  Select the vendor pull options. Review the description of each option More information
    1. Main Vendor Name and Address (if you only use the main vendor Check Information address lines, select this option)
    2. Attention Line and Main Address
    3. 1099 Name Line and Address (if you have the 1099 Address tab in the vendor master completed, select this option)
  4. Work File Options See Work File More Information
    1. If your company uses Section 8:
      1. The first pull should be in the Section 8 program. Place the dot in Remove ALL 1099 Information in Work File before Pulling.  This will erase all existing information in the 1099 file and pull new information based on the date range.
      2. The second pull should be in the Financials program, place the dot in Add to Work File.  This will keep all the Section 8 information generated during the first pull and add the AP information.
    2. If your company does not use Section 8:
      1. In Financials place the dot in Remove ALL 1099 Information in Work File before Pulling. This will erase all existing information in the 1099 file and pull new information based on the date range.
  5. Select Combine Payees By Tax ID is Recommended.
    1. Any vendors with the same Federal ID will be combined on one 1099.  
    2. This is useful when a vendor has more than one company name for payments, but has only one Federal ID.  
    3. The IRS considers these as one entity and should be combined on one 1099.
  6. Click PULL
  7. You can repeat this process using the Work File Options.
    1. If you are not satisfied with the outcome, you may go back and edit the Vendor Master or Void checks.  
    2. Then repeat the Pull 1099 Information steps using the Recreate or Remove All options.  
    3. Be careful if Section 8 information has already been pulled as you could wipe out that information as well.

Step 4: Edit the 1099 Information

This step will allow you to any information that will appear on the 1099. Review Edit 1099 More Information.

NAVIGATION: UTILITIES menu > Edit 1099 Information

  1. In the CONTROL NUMBER field, click the browse icon.  Select the vendor you want to edit.  Click OK.
  2. Edit/change vendor information
    1. Edit any recipient information that was not corrected in Step 1.
    2. Use the MISC, NEC, and Interest tabs to view/edit data for the type of form to be submitted
  3. Click SAVE.
  4. To delete a record from the 1099 file:
    1. In the CONTROL NUMBER field, click the browse icon.  Select the vendor you want to delete.  Click OK.
    2. Make sure your cursor is in the CONTROL NUMBER field.
    3. Click DELETE.
    4. Click YES when prompted.
  5. To manually add a 1099 to the file:
    1. Click Clear/Add
    2. Leave the CONTROL NUMBER field blank.
    3. Enter all necessary information.
    4. Click SAVE.
  6. NOTE: The electronic 1099 (S8 Only) checkbox will flag the 1099 to not print the vendor copy and only send to the Horizon DocumentViewer Service.  This should only be used for Section 8 Landlords that will access their 1099 from DocumentViewer.   

Step 5: Review Name Control Information

The Name Control should be a four (4) character ID using the first four letters of a person's last name or the first four letters of the company name.  Do not use special characters such as spaces, -, !, @, #, etc.  Please review IRS Publication 1220 for complete instructions on name control rules.

If you are submitting the 1099s electronically to the IRS, the name control fields are required.

NAVIGATION: UTILITIES menu > Review Name Control

  1. Manually enter name control information for vendors missing the information.
  2. You may also click on the GENERATE NAME CONTROL INFORMATION (BEST GUESS) button at the bottom left.
    1. Review the grid results for errors.   
    2. This program makes a best guess at the name control and should be reviewed.  
  3. Click SAVE

Step 6: Final Edit List

NAVIGATION: UTILITIES menu > Final Edit List

  1. Enter a Reporting Group or leave blank for all
  2. You can customize the report based on the options.
    1. Select up to three different report options from the column selections available to print on the report.  
    2. If your company uses Section 8, always include Rents.
  3. Dollar Limit
    1. Enter a dollar amount to preview or print a report for 1099s above the amount entered.
    2. For example: if 600.00 is entered as the limit, only 1099s with totals above 600.00 will be shown on the report.
  4. Electronic: Select
    1. All
    2. NOT Electronic
    3. Electronic Only 
  5. File Mode: Select
    1. All
    2. 1099 NEC Only
    3. 1099 MISC Only
    4. 1099 Interest Only
  6. Print/Preview the report to review.
  7. If any of the information is incorrect on the report, correct the vendor information in Step 4.

Recommended NEC Report Options

  1. Dollar Limit:  Enter 600.00
  2. Electronic: Select All
    1. You may run also as the electronic and not electronic if you want this data.
  3. File Mode: Select 1099 NEC Only
  4. Column 1: Select Non-Employee Comp

Recommended MISC Report Options

  1. Dollar Limit:  Enter 600.00
  2. Electronic: Select All
    1. You may run also as the electronic and not electronic if you want this data.
  3. File Mode: Select 1099 MISC Only
  4. Column 1: Select 1. Rents
  5. Column 2: Select 2-15.  Use which ever category that may have data  
  6. Column 3: Select 2-15.  Use which ever category that may have data  

Step 7: Verify Financials/Section 8 Program Versions

REQUIRED: Users should verify they are using an updated versions of the programs to ensure that the printed 1099s comply with current requirements.  

NAVIGATION: ABOUT

  1. To print correct 1099 forms and create the correct electronic files, refer to the program start page for current recommended version numbers. 

Step 8: Print 1099 Forms

Before printing, make sure you verified and reviewed all vendor information in the previous steps.  

WARNING:  Make sure you are not set to print double sided to your printer.  You can use Print with Setup to select your printer Then Preferences to select options, i.e., 1-Sided.

NAVIGATION: UTILITIES menu > Print 1099 Forms

Review the Recommended Printing Steps

  1. Company Information - If the correct company information is not displayed, enter it in the appropriate lines.
    1. This information is pulled from the SYSTEM menu > Company Information.  Make sure to update for future 1099 processing.
    2. Verify the correct Federal ID is entered with no spaces or hyphen.  
  2. Sequence
    1. Year to Print:  Enter the year to print at the top of the 1099 forms.
    2.  Electronic: Select one of the following:
      1. Not Electronic Only (paper)
      2. All
      3. Electronic Only
  3. Form Mode
    1. Select the Form to Print:  MISC, NEC, or INT
    2. Warning: Changing this selection will also change the Format information selected to the Pre-Printed version.
  4. Format Information
    1. Use the drop down to elect which form you want to print.  Formats with COMPLETE in the name may be previewed to review before printing.
      DESCRIPTION FOR PRINT ON

      Preprinted Form

      		 Use for IRS RED or for preprinted forms Pre-Printed Red Form 
      MISC
      NEC
      INT
      Complete Copy B For Recipient Blank Front, pre-printed 
      Instructions on back
      MISC - use Form LMBL
      NEC - use Form NECLMBL 
      Complete Copy C For Payer Blank Front, no instructions 
      MISC - use Form LMRNB
      NEC - use Form L9BL
      Complete Copy 1 For State Tax Department Blank Front, no instructions 
      MISC - use Form LMRNB
      NEC - use Form L9BL
      Complete Copy 2 File with Recipient's State Tax Return Blank Front, no instructions 
      MISC - use Form LMRNB
      NEC - use Form L9BL
    2. Dollar limit:  Enter a dollar amount to print 1099s above the amount entered.  For example, if 600.00 is entered as the limit, only 1099s with totals above 600.00 will be printed.
  5. PRINT: When all information has been entered and all selections are made you may Print.
    1. Click PRINT to allow default to your default printer/use PRINT WITH SETUP to select the printer and options.
    2. Test print the first two vendors (enter control number in Starting/Ending control field) to plain paper (or on an extra form) hold it up to a form to see if it is aligned.   If the form is not printing in the boxes properly, use the adjustments.  Horizon recommends test printing the 1099 IRS Red Copy and other pre-printed forms not purchased from Horizon.  
    3. Review your pages for any alignment problems.  Increase or decrease the adjustment values until the printing aligns within the boxes.
    4. Once you are satisfied with the test print, print the information on the tax forms.
  6. Adjustments: There are two sets of adjustments:  Top form and Bottom form.
    1. If both forms need to move the same amount, then use the same amounts for both forms.    
    2. Entering an amount in the Top form will not move the bottom form.
    3. Up/Down - If printing to low on page enter -25, if printing to high enter 25.  
    4. Left/Right - If printing to far to the right enter -25, If to far to the left enter 25.  
  7. Recommended: Horizon strongly recommends saving a PDF copy of the 1099 forms.
    1. Use format information Use the Complete Copy B For Recipient or Complete Copy C for Payer.  so you can easily reprint any vendor 1099 if needed.  
    2. Use the Export – PDF or Email options
    3. The file should be saved on your server where it is backed up and can be found if needed in the future.  
  8. Repeat the steps for printing the 1099 forms until you have all of the MISC, NEC, and Interest forms that you need printed.
  9. The 1096 form is not available to print and must be completed by hand.

Step 9: Section 8 Publish 1099 to DocumentViewer

This process will publish the 1099 forms to the Document viewer so landlords can log in and download/print.

If your company uses Section 8 and the DocumentViewer for Landlords, this step is required.  

In the Section 8 program:

NAVIGATION: UTILITIES menu > Publish 1099 Form

  1. Verify all Company Information is entered as in previous steps.  
  2. Enter the Year to Print.
  3. Click Publish Forms.
  4. When complete you may view Published 1099s in the Landlord Master Attachments.

DocumentViewer will publish 1099 MISC forms only.  If a Landlord also requires a 1099 NEC a paper copy must be sent.  NEC forms will not appear on DocumentViewer.

VIDEO: How To Send Landlord 1099 Forms to the Document Viewer

Step 10: Create Electronic 1099 Files

  1. If you are submitting your 1099 information electronically to the IRS, there is no need to print the red copy of the 1099 or the 1096.
  2. NOTE:  The name control field is required when submitting electronic files.  Make sure the name control field is filled in on all 1099 records.  See Review 1099 Name Control Information
  3. There a four file types created in this process based on the field selections in Agency Mode and in Form Mode.
  4. Follow the directions in How To Process Electronic 1099 Files to create the electronic files needed to submit to the IRS and Pennsylvania.

11/2021

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