Understanding Pay Type Setup for Year-End Processing

You set up pay types for 1099 processing to accurately allocate earnings, other than wages, for contract or pension employees.

You must set up these pay types before you can enter the employee's pay-in-time entry and process it through a payroll cycle.

For processing 1099s, you must enter all of the pay types in special handling for gross distributions. This entry is required for 1099-Rs to generate a form. It is also required for 1099-MISCs for electronic filing.