Hometown Citizens - Homeland Heroes Stacy Jackson

Hometown Citizens - Homeland Heroes

Stacy Jackson


IntroductionIntroduction

Steps to TakeSteps to Take 1099-MISC1099-MISC

Prizes and AwardsPrizes and Awards Rent and Royalty PaymentsRent and Royalty Payments ServicesServices Attorney PaymentsAttorney Payments

Upcoming ChangesUpcoming Changes Final Notes & QuestionsFinal Notes & Questions


Steps to TakeSteps to Take

Be diligent with Accounts Payable Be diligent with Accounts Payable postings. postings.

OneOne vendor card for each vendor. vendor card for each vendor.

Transactions must be accurate.Transactions must be accurate.

Indicate 1099 Eligible Vendors in Indicate 1099 Eligible Vendors in QuickBooksQuickBooks


Vendor Edit ScreenVendor Edit Screen



Decide which vendors should receive Decide which vendors should receive a 1099-MISCa 1099-MISC

Obtain Form W-9 from all vendors and Obtain Form W-9 from all vendors and upload to eAccounting.upload to eAccounting.

Not required for members who are paid Not required for members who are paid reimbursements.reimbursements.


W-9 ExampleW-9 Example

Vendor should

choose one business

type.

Vendor should enter

one TIN number. This

number should match their annual tax returns.

Vendor should

sign form.



Determine the amount to be reported Determine the amount to be reported on each 1099-MISCon each 1099-MISC

Provide all information needed to file Provide all information needed to file your 1099-MISC Forms to your WFA. your 1099-MISC Forms to your WFA.

Must be provided no later than Jan 15Must be provided no later than Jan 15thth for the preceding calendar year.for the preceding calendar year.


1099-MISC1099-MISC

Required for the followingRequired for the following

Prizes and Awards Prizes and Awards

Rent and Royalty Payments Rent and Royalty Payments

Services performed by individuals who Services performed by individuals who are not are not

employees and are not incorporated employees and are not incorporated

Gross Proceeds paid to AttorneysGross Proceeds paid to Attorneys


1099-MISC Example1099-MISC Example

All of the information for the recipient must match their annual income tax return


Prizes and AwardsPrizes and Awards Reportable amount:Reportable amount:

$600 per calendar year$600 per calendar year Information needed:Information needed:

Individual’s name, address, and Social Individual’s name, address, and Social Security NumberSecurity Number

Total amount of all prizes and awards paid to Total amount of all prizes and awards paid to the individual or on the individual’s behalfthe individual or on the individual’s behalf

Example:Example: Flight scholarships or any cash awards to Flight scholarships or any cash awards to

membersmembers


Rent and Royalty Rent and Royalty PaymentsPayments Payments made to corporations and Payments made to corporations and

governments are exemptgovernments are exempt Reportable amount:Reportable amount:

$600 per calendar year for Rent & $10 per $600 per calendar year for Rent & $10 per calendar year for Royaltiescalendar year for Royalties

Information needed:Information needed: Name, address and Taxpayer Identification Name, address and Taxpayer Identification

Number that the vendor uses to file their annual Number that the vendor uses to file their annual tax returntax return

Total amount of all rent or royalty payments Total amount of all rent or royalty payments paid to the vendorpaid to the vendor

Example:Example: Hangar rental, office rental, or storage rentalHangar rental, office rental, or storage rental


ServicesServices Payments made to corporations are exemptPayments made to corporations are exempt Reportable amount:Reportable amount:

$600 per calendar year$600 per calendar year Information needed:Information needed:

Name, address and Taxpayer Identification Name, address and Taxpayer Identification Number that the vendor uses to file their annual Number that the vendor uses to file their annual tax returntax return

Total amount of all payments made for services to Total amount of all payments made for services to the vendorthe vendor

Example:Example: Catering, facility cleaning, lawn care, or pest Catering, facility cleaning, lawn care, or pest

controlcontrol


Attorney PaymentsAttorney Payments Payments made to corporations Payments made to corporations must still be must still be

reportedreported.. Reportable amount:Reportable amount:

Reportable for any amount paid per calendar Reportable for any amount paid per calendar yearyear

Information needed:Information needed: Name, address and Taxpayer Identification Name, address and Taxpayer Identification

Number that the vendor uses to file their annual Number that the vendor uses to file their annual tax returntax return

Total amount of all payments made to the vendorTotal amount of all payments made to the vendor Example:Example:

Retainers and legal fees paid to law firmsRetainers and legal fees paid to law firms


Upcoming ChangesUpcoming Changes

Corporate exemption expires Corporate exemption expires December 31, 2011.December 31, 2011.

Goods exemption expires December Goods exemption expires December 31, 201131, 2011

Payments on credit cards will be Payments on credit cards will be reportable by payment card reportable by payment card processor after December 31, 2010.processor after December 31, 2010.

Penalties will increase to $250 per Penalties will increase to $250 per formform


Some Final NotesSome Final Notes

All forms must be filed with the same All forms must be filed with the same information as the individual or information as the individual or business uses to file their income business uses to file their income taxes each yeartaxes each year

All information should be reported by All information should be reported by calendar yearcalendar year

The Wing is responsible for obtaining The Wing is responsible for obtaining all information via Form W-9all information via Form W-9


Need Help?Need Help?

Contact your Wing Financial Analyst Contact your Wing Financial Analyst or Financial Management at or Financial Management at National Headquarters!National Headquarters!

QUESTIONS?QUESTIONS?

Documents

Hometown Citizens - Homeland Heroes Stacy Jackson