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Vendor, W9 and 1099 Questions

Here are some fast answers to questions recently asked through the Fathom site.

Use our contact form to submit a question for Fast Answers.

 

Show/Hide AnswerHow do I enter a W9?

When a vendor returns a W9, go to the Vendor Center (or Vendor List in older versions) and edit the vendor name. Go to the Additional Info tab and fill in the Tax ID and check the Vendor eligible for 1099 box. Review the Address Info to be sure that the information you have entered matches the information provided on the W9

Show/Hide AnswerDoes a cash payment of $100 to an employee require a 1099?

All payments to employees for work should be recorded through the payroll system and have the required taxes applied. If you have made a cash advance to an employee, it should be posted to an asset account named Employee Advances. When the employee is paid for that work (that is, a paycheck is created), the advance can be repaid.

Show/Hide AnswerAre there changes in 1099 rules coming?

For payments to vendors made after December 31, 2011, you must provide and file 1099-Misc for payments made to all non-profit companies regardless of corporate status. Payments for all goods, materials, merchandise, supplies, and other property must be reported as well as payments for services. Per record penalties will double to $100.00 per record. Here are some links to articles covering these changes:
About.com and ThomsonReuters.com

 

Advice and tips provided on the Fathom Graphics website are not a substitute for advice from your CPA, tax preparer or attorney. We are not CPAs or attorneys and do not provide legal or tax advice.