1. explore engage elevate 1099 Reporting Best Practices Authored by Mike McDowell, Mekorma & Molly Van Kampen, Greenshades Software

2. exploreengage elevate Agenda Common 1099 errors 1099 deadlines Missing or incorrect TIN TIN Matching 1099 Filing

3. exploreengage elevate Understanding how GP records 1099 amounts 1099 amounts are stored in the vendor summary records AP determines transaction by transaction where amounts record Prior to GP 2010 need PSTL to update 1099 amounts GP 2010 - Update 1099 Information & amounts all or nothing GP 2013 – edit 1099 transactions by transaction

4. exploreengage elevate Most common 1099 errors that cause IRS penalties Failure to file on-time Failure to electronically file when required Incorrect name/TIN Failure to withhold back-up withholding

5. exploreengage elevate Penalties Penalties are charged for late or incorrectly filed returns (both recipient and government copies) and are based on when the CORRECT return is received. $30 per return filed within 30 days of due date $60 per return if filed by August 1 $100 per return filed after August 1

6. exploreengage elevate Important deadlines February 2, 2015 – 1099 recipient copies must be distributed March 2, 2015 – 1096 and 1099 paper copies due to the IRS March 16, 2015 – 1042 recipient copies and IRS copies/files due March 31, 2015 – electronic file(s) due to the IRS (in 2015, January 31, February 28 and March 15 all fall on weekends and the due dates move to the next business day)

7. exploreengage elevate Who Needs to File Electronically Organizations filing 250 or more returns of a same type must file electronically Requirement is per EIN This requirement is per type of 1099 ( if a company files 400 1099- MISC and 200 1099-INT returns, only the MISC returns MUST be filed electronically) When correcting returns, 250 or more corrected returns must be files electronically

8. exploreengage elevate Incorrect Name/TIN The vendor name must be entered into Name Line 1 on the 1099 exactly as it is registered with the IRS. D.B.A. or aka names can be entered into Name Line 2 Sole proprietors must use their full name as their legal business (Name Line 1) name regardless of their D.B.A. TIN an SSN are both 9 digits and contain no letters, are not consecutive numbers and should be formatted properly TIN XX-XXXXXXX SSN XXX-XX-XXXX

9. exploreengage elevate Back-up Withholding Back-up withholding is required when a vendor has not provided a valid TIN Back-up withholding rate is 28% Reported in box 4 of the 1099-MISC form and is included on form 945 Starting in 2015, the 945 will be available for electronic filing

10. exploreengage elevate I Received a No-Match Letter A CP2100 or CP2100A notice is a that indicates that a payer may need to start back-up withholding. It includes a list of missing, incorrect or not issued TINs and the names that were associated. Compare the TIN/name with your records W-9 System records Previous “B” notices

11. exploreengage elevate Missing TIN If missing TIN, immediately begin backup withholding and request correct TIN information from payee (form W-9). Begin withholding within 30 days of receipt of CP2100/CP2100A Suspend back-up withholding within 30 days of receiving TIN information You must complete three requests for TIN in order to prevent penalty for incorrect TIN. Initial request 1 st annual 2 nd annual

12. exploreengage elevate Incorrect TIN Corrected TIN numbers do NOT require a corrected 1099 to the IRS or vendor Corrected 1099s are only required if there is a need to correct financial information Correct TIN in your records and keep record of the change

13. exploreengage elevate TIN Matching TIN Matching is a free service available to authorized payers An authorized payer is one who has filed forms 1099-B, 1099-DIV, 1099-INT, 1099-K, 1099-MISC, 1099-OID or 1099-PATR with the IRS in at least one of the two past tax years. An application must be completed by a principal of the company after registration Legal name (verified with IRS & SSA records) Social Security Number (verified with SSA records) Date of birth (verified with SSA records) Telephone number E-mail address Adjusted Gross Income (AGI) from either your current year or prior year filed tax return (verified from IRS records) Home mailing address (verified from IRS records)

14. exploreengage elevate TIN Matching There are two methods of TIN Matching Up to 25 records can be matched in real time through the Interactive TIN Matching service Bulk TIN Matching is available for submission of up to 100,000 records. Results are available within 24 hours of submission. Account lock-out If the same TIN is submitted with various names OR the same name is submitted with various TINs, your account will be suspended for a period of 96 hours.

15. exploreengage elevate How To E-File Dynamics GP does not offer the electronic file for 1099 Federal E-file must comply with IRS publication 1220 E-file must be received by the IRS no later than March 31 st E-file can be edited and submitted through the Greenshades Tax Filing Center Recipient 1099 forms and E-file can be created and submitted through the Greenshades Year End Forms Recipient 1099 forms and E-file can be submitted through 1099Pro

16. exploreengage elevate Greenshades Tax Filing Center www.Greenshades.com www.Greenshades.com An integrated GP Module for W2 and 1099 printing and efiling Allows for electronic viewing of 1099s Easy editing to form data

17. exploreengage elevate Greenshades E-File Wizard

18. exploreengage elevate Select Files to Build

19. exploreengage elevate Edit 1099 Information

20. exploreengage elevate Review Built Files

21. exploreengage elevate Greenshades Year End Forms

22. exploreengage elevate Edit Form Information

23. exploreengage elevate Simple E-file Wizard

24. exploreengage elevate 1099Pro  http://www.1099pro.com http://www.1099pro.com  Stand-alone software alternative  Allows you to print on plain paper  Turnkey Service Bureau offering  Web presentment  SAS 70 certified (if you have SOX/IT/Audit requirements)

25. exploreengage elevate

26. exploreengage elevate 1099Pro Import Template (tab delimited files from Excel)

27. exploreengage elevate 1099Pro Software Interface

28. exploreengage elevate 1099Pro Form Edit Screen

29. exploreengage elevate Any Questions on the new 1095-C?

30. explore engage elevate Questions? Challenges we want to discuss?