Define Additional United States 1099 Income Tax Regions.

Prerequisites

• If you are doing business within the United States, refer to federal or state tax publications to obtain information regarding the 1099 reporting requirements for each participating tax region. 

• For example, you need to identify the reporting limits for each of your income tax regions. You also need to define region codes for all states that have recently started participating in the Combined Filing Program.

• Enable your Combined Filing Program Payables option.

Defining Income Tax Region

• Navigation: Payables > Setup > Tax > Regions

• In the Income Tax Regions window, enter the region Abbreviation you are defining or locate the region Abbreviation you are updating. Enter the region's Internal Revenue Service Code.

• Enter a Description for the region if it is not predefined.

• After you save a tax region, you cannot update or delete it, but you can specify effective dates if you want to make it inactive.

• Enter for the Reporting Limit Amount the minimum amount Payables uses to determine whether to report on a supplier's payments. If you do not enter an amount, Payables assumes the limit is zero.

• Select the Method that Payables uses to compare actual payments to the Reporting Limit Amount:

• Compare Individually. Compare to the Reporting Limit Amount the sum of payments for each 1099 MISC Income Tax type. For example, region X's reporting limit is $600. If you make a total of two $400 payments to a supplier in region X and classify each payment as a different 1099 MISC Type, Payables will not report this supplier to region X because neither individual payment type exceeded region X's reporting limit. In this case, Payables only reports the supplier to the Federal tax authorities.

• Compare Sum. Compare to the Reporting Limit Amount the sum of payments for all 1099 MISC Income tax types. For example, region X's reporting limit is $600. If you make a total of two $400 payments to a supplier and classify each payment as a different 1099 MISC Type, Payables will report this supplier to the region X tax authority because the sum of the payments exceeds region X's reporting limit. In this case, Payables reports the supplier to both federal and state tax authorities.

• Same as Federal. Ignore the region Reporting Limit Amount, and instead use the Federal reporting limit, which Payables has predefined as $600.