Update Income Tax Details Utility and Report
Submit this utility to report on or update the Income Tax Type and/or Income Tax Region fields on invoice distributions. These fields are required for all invoice distributions of United States Federally Reportable suppliers because the fields are necessary for 1099 reporting.
You can correct inaccurate or missing Income Tax Type or Income Tax Region fields for 1099 suppliers. First, ensure that the supplier site has accurate 1099 information (Income Tax Type and Income Tax Region), then submit the utility.
You can also use this utility to correct invoice distributions of non-1099 suppliers that have Income Tax Types assigned. If the supplier is a non-1099 supplier but you have inadvertently assigned Income Tax Types, first, ensure that the supplier is not federally reportable in the Suppliers window, and that the site Income Tax Type field is blank. Then submit the Update Income Tax Details utility. If the supplier should be a 1099 supplier, update the supplier as Federally reportable in the Suppliers window. In this case, the invoice distributions are accurate, so you do not need to submit the Update Income Tax Utility. Payables will then include the invoices for the supplier in 1099 reports.
For more information about how this utility works, please refer to the Selected Report Parameters section for this utility and report.
The report is divided into two sections and ordered by supplier within each section:
The Income Tax Type section lists the supplier name and number of invoice distributions that do not have income tax types for your 1099 suppliers. It also lists the invoice distributions that have income tax types for non-1099 suppliers.
The Income Tax Region section lists the supplier name and number of invoice distributions with incorrect or missing income tax regions.
You can choose to run this utility in one of two modes. If you submit the utility in report mode, for each section, the report lists the number of distributions that will be updated when you submit the utility in update mode. If you run the utility in update mode, the report lists the number of distributions updated by the utility.
Prerequisites
Submit the 1099 Invoice Exceptions Report to review invoice distributions with inaccurate or missing income tax information for 1099 suppliers. (Optional) See: 1099 Invoice Exceptions Report.
Correct the Income Tax Type in the Tax region of the Supplier Sites window.
Update the Income Tax Region. Either correct the State field for the address of the supplier site you designate as the Reporting Site, or specify the correct value for this field in the Update Income Tax Region to parameter when you submit the utility.
Correct the Federally reportable status of a supplier in the Suppliers window, if applicable.
Suggestion: To ensure correct Income Tax Region fields for the supplier site's future distributions, correct either the Payables Options Income Tax Region default value, if you have one, or correct the State field for the address of the supplier site you designate as the Reporting Site.
Utility and Report Submission
You submit this utility from the Submit Request window. See: Submitting Standard Reports, Programs, and Listings.
Selected Report Parameters
Supplier Name. Supplier name, if you want to submit this program for a particular 1099 supplier's invoices. Leave the field blank if you want to submit the program for all 1099 suppliers. In this case, Payables either reports on or updates the 1099 information for all 1099 supplier invoices.
Start/End date. Range of invoices with 1099 invoice distribution exceptions that you want to update. Payables includes all invoices with invoice dates on or between the Start Date and End Date.
Income Tax Type action. The action you want to perform on the income tax type for the invoice distributions for the suppliers you specify.
- No Action. Payables does not update invoice distributions with incorrect or missing income tax types or print the Update Income Tax Details Report.
- Report. Payables does not update invoice distributions, but prints the Update Income Tax Details Report, listing the number of invoice distributions with incorrect or missing income tax types for the suppliers you specify.
- Update. Payables updates the income tax type for invoice distributions with incorrect or missing income tax types and prints the Update Income Tax Details Report.
The program updates the income tax type for each invoice distribution to the default income tax type for the supplier site.
Income Tax Region action. The action you want to perform on the income tax region for the invoice distributions for the suppliers you specify. You can choose to take no action or you can choose to submit the utility in report or update mode.
- No Action. Payables does not update invoice distributions with incorrect or missing income tax regions or print the Update Income Tax Details Report.
- Report. Payables does not update invoice distributions, but prints the Update Income Tax Details Report, listing the number of invoice distributions with incorrect or missing income tax regions for the suppliers you specify.
- Update. Payables updates the income tax region for invoice distributions with incorrect or missing income tax regions and prints the Update Income Tax Details Report. This report lists the number of invoice distributions updated by the program.
The program updates the income tax region for each invoice distribution depending upon your choice for the next parameter.
Update Income Tax Region to. The income tax region that you want to use to update 1099 invoice distributions that have incorrect or missing income tax regions.
- No change. Choose this option if you select No Action or Report for the Income Tax Region action parameter.
- Supplier Site Tax Region. Income tax region (state) in the address of the supplier site for the invoice.
Choose any tax region defined in the Income Tax Regions window. This option is available only if you have selected Update as the Income Tax Region action parameter.
Selected Report Headings (Income Tax Types and Income Tax Regions)
Supplier Income Tax Type. For invoice distributions with incorrect income tax regions, Payables prints the default income tax type for the supplier site. You define a default income tax type for a 1099 supplier in the Supplier Sites window.
Distributions Eligible for Update. Total number of invoice distributions for a supplier site that are eligible for update. Payables only prints this information if you choose to submit the utility in report mode.
Number of Updated Distributions. Total number of updated invoice distributions for a supplier. Payables prints this information only if you choose to submit the utility in update mode.
See Also
1099 Reporting Overview
Entering Suppliers
1099 Invoice Exceptions Report
Setting Up Supplier Tax Information
Income Tax Regions
