Hometown Citizens - Homeland Heroes Stacy Jackson

Hometown Citizens - Homeland Heroes Introduction Steps to Take Steps to Take 1099-MISC 1099-MISC Prizes and Awards Prizes and Awards Rent and Royalty Payments Rent and Royalty Payments Services Services Attorney Payments Attorney Payments Upcoming Changes Upcoming Changes Final Notes & Questions Final Notes & Questions

Hometown Citizens - Homeland Heroes Steps to Take Be diligent with Accounts Payable postings. Be diligent with Accounts Payable postings. One vendor card for each vendor. One vendor card for each vendor. Transactions must be accurate. Transactions must be accurate. Indicate 1099 Eligible Vendors in QuickBooks Indicate 1099 Eligible Vendors in QuickBooks

Hometown Citizens - Homeland Heroes Vendor Edit Screen

Hometown Citizens - Homeland Heroes Steps to Take Decide which vendors should receive a MISC Decide which vendors should receive a MISC Obtain Form W-9 from all vendors and upload to eAccounting. Obtain Form W-9 from all vendors and upload to eAccounting. Not required for members who are paid reimbursements. Not required for members who are paid reimbursements.

Hometown Citizens - Homeland Heroes W-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.

Hometown Citizens - Homeland Heroes Steps to Take Determine the amount to be reported on each 1099-MISC Determine the amount to be reported on each 1099-MISC Provide all information needed to file your 1099-MISC Forms to your WFA. Provide all information needed to file your 1099-MISC Forms to your WFA. Must be provided no later than Jan 15 th for the preceding calendar year. Must be provided no later than Jan 15 th for the preceding calendar year.

Hometown Citizens - Homeland Heroes 1099-MISC Required for the following Required for the following Prizes and Awards Prizes and Awards Rent and Royalty Payments Rent and Royalty Payments Services performed by individuals who are not Services performed by individuals who are not employees and are not incorporated employees and are not incorporated Gross Proceeds paid to Attorneys Gross Proceeds paid to Attorneys

Hometown Citizens - Homeland Heroes 1099-MISC Example All of the information for the recipient must match their annual income tax return

Hometown Citizens - Homeland Heroes Prizes and Awards Reportable amount: Reportable amount: $600 per calendar year $600 per calendar year Information needed: Information needed: Individual’s name, address, and Social Security Number Individual’s name, address, and Social Security Number Total amount of all prizes and awards paid to the individual or on the individual’s behalf Total amount of all prizes and awards paid to the individual or on the individual’s behalf Example: Example: Flight scholarships or any cash awards to members Flight scholarships or any cash awards to members

Hometown Citizens - Homeland Heroes Rent and Royalty Payments Payments made to corporations and governments are exempt Payments made to corporations and governments are exempt Reportable amount: Reportable amount: $600 per calendar year for Rent & $10 per calendar year for Royalties $600 per calendar year for Rent & $10 per calendar year for Royalties Information needed: Information needed: Name, address and Taxpayer Identification Number that the vendor uses to file their annual tax return Name, address and Taxpayer Identification Number that the vendor uses to file their annual tax return Total amount of all rent or royalty payments paid to the vendor Total amount of all rent or royalty payments paid to the vendor Example: Example: Hangar rental, office rental, or storage rental Hangar rental, office rental, or storage rental

Hometown Citizens - Homeland Heroes Services Payments made to corporations are exempt Payments 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 Number that the vendor uses to file their annual tax return Name, address and Taxpayer Identification Number that the vendor uses to file their annual tax return Total amount of all payments made for services to the vendor Total amount of all payments made for services to the vendor Example: Example: Catering, facility cleaning, lawn care, or pest control Catering, facility cleaning, lawn care, or pest control

Hometown Citizens - Homeland Heroes Attorney Payments Payments made to corporations must still be reported. Payments made to corporations must still be reported. Reportable amount: Reportable amount: Reportable for any amount paid per calendar year Reportable for any amount paid per calendar year Information needed: Information needed: Name, address and Taxpayer Identification Number that the vendor uses to file their annual tax return Name, address and Taxpayer Identification Number that the vendor uses to file their annual tax return Total amount of all payments made to the vendor Total amount of all payments made to the vendor Example: Example: Retainers and legal fees paid to law firms Retainers and legal fees paid to law firms

Hometown Citizens - Homeland Heroes Upcoming Changes Corporate exemption expires December 31, Corporate exemption expires December 31, Goods exemption expires December 31, 2011 Goods exemption expires December 31, 2011 Payments on credit cards will be reportable by payment card processor after December 31, Payments on credit cards will be reportable by payment card processor after December 31, Penalties will increase to $250 per form Penalties will increase to $250 per form

Hometown Citizens - Homeland Heroes Some Final Notes All forms must be filed with the same information as the individual or business uses to file their income taxes each year All forms must be filed with the same information as the individual or business uses to file their income taxes each year All information should be reported by calendar year All information should be reported by calendar year The Wing is responsible for obtaining all information via Form W-9 The Wing is responsible for obtaining all information via Form W-9

Hometown Citizens - Homeland Heroes Need Help? Contact your Wing Financial Analyst or Financial Management at National Headquarters! Contact your Wing Financial Analyst or Financial Management at National Headquarters!QUESTIONS?