Template 1099 Misc - PowerPoint by bhr20237

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									   Spring 2010
Financial Services
   Welcome &
Housekeeping items
            Future HRS impacts on
            Accounts Payable
Only Tax Reporting is affected
       •Moving to Monthly Reporting
       •Changes in Business Processes to record
       adjustments – More user friendly
       •HRS using an outside vendor for 1042s filing
       •HRS still creating specifications
       •SFS specifications on hold
Updated Mass Voucher Load

     New process available
       Fall/Winter 2010
PeopleSoft/SFS Updates and
    Maintenance Packs
 No maintenance Packs or Updates
        this Fall or Spring
                Voucher Templates
• Unique to a Vendor, not “generic”
• Useful for repetitive entry and multiple line
• Page 37 of the Accounts Payable Manual
• Navigation: Accounts
  Payable>Vouchers>Add/Update>Regular Entry
• Voucher Style – Template
• Template vouchers do not pay and can be
  updated at anytime
       Template Vouchers

Select Voucher Style – Template Voucher
       Template Vouchers

Create a unique Template ID and Description
Template Vouchers
               Voucher in
               manner as
               a regular
      Template Voucher

To use the template. Go into voucher entry as usual
but use the “Worksheet Copy Option”. From the
menu, select “Template”.
                  Template Voucher

There is a list of templates associated to this vendor.
Template ID and Description will help user to select
the correct template. Select the template by using the
“Copy from template” button.
                   Template Voucher

Template information copied into the new voucher.
Complete voucher and save.
                Holding Payments
• Hold Payments to a Vendor – IRS Lien or
  vendor dispute
• Hold Payment on a Voucher – Invoice is in
  dispute. Cancelling a payment and need to
  change remit to address, etc.
• Hold Purchase Order from Further Processing.
  A PO-related issue.
Hold Payments to a Vendor
                 Be sure to place
                 the hold an all

                       Add a new
          Hold Payments to a Vendor

Vendor will not be paid
until the hold is unchecked.
Add a new effective dated
Location Details pane. Do
not forget to save after
updating the vendor. To
take vendor off the hold,
add another new effective
dated “Details” pane and
uncheck hold.
Voucher Hold Payment
             On the Payment
             Panel of Voucher
             Entry. Check Hold
             Payment and Save
             the Voucher. You
             have to “uncheck”
             for the voucher to
             be paid.

             User must have
             security to
             “Manually Schedule
PO On Hold for Further Processing

                          Process a
                          Change Order
                          Against the PO
      PO On Hold for Further Processing

Enter Comments – Be sure to Check “Send to vendor”. Click OK.
              PO On Hold for Further Processing

Save PO and status will change to “Approved”. Then place PO on Hold.
PO On Hold for Further Processing

      Do not forget to “Save”.
         Vendor Management

How to use Equifax Vendor Information
  Still in Development (SFDEV only)
             (See handout)
                 Vendor Management - Equifax
Existing Vendors have a direct link to the bolt-on when there is a
“high confidence match” to the Equifax Vendor Database
              Vendor Management - Equifax
Navigation to Bolt-on for Equifax Vendor information
SFS Extensions > Equifax Vendors
        Vendor Management - Equifax
Equifax matches to our vendor files

                                      Campus and
                                      Vendor ID
     Vendor Management - Equifax

Includes Total
Spend (all
for the last 2
        Vendor Management - Equifax

Demographic Information
         Vendor Management - Equifax

Unique Equifax/AT Number and Parent Number
        Vendor Management - Equifax
Demographic Information –
Minority-owned, Woman-owned, Veteran-
 owned, etc.
                 Vendor Management - Equifax
Run queries to analyze vendor data

 Example of a query of the certification fields UW_89_EQU_CERT_VND
                    Vendor Management - Equifax
Search for Existing Vendors

  Navigation SFS Extensions> Equifax Vendors > Equifax Vendor Search
Vendor Management - Equifax

            Search for
            across UW-
           Vendor Management - Equifax
• What roles will have access to this Information?
All users with access to:
Vendor Identifying Information
                  Minority Vendors
• Use Vendor Reporting Elements handout as a
• Types of Minority Vendors
  – Wisconsin Certified Minority Business
  – Wisconsin Certified Woman Owned Minority Business
  – Other Certified Minority Business (recognized by
    another authority, state or federal, as a minority
  – Self-Certified Minority Business (We would direct
    them to State for state certification)
                Minority Vendors
Where to maintain the vendor record?
Navigation – Vendors>Add/Update>Vendor
Identifying Information
Scroll down to Addition Reporting Elements
                    Minority Vendors
Additional Reporting Elements:
Scroll Down record and click on “Expand All”

Vendor entry drop-down menu for vendor (contractor) type
          Minority Vendor Reporting
• Query for Minority Vendor List
  – UW_89_MIN_VNDR
• Query for Minority Vendor Vouchers

  Public Query
  Respect public queries
Vendor W-9
                      W-9 Alternate Names

                                       Line 1 Withholding Alternate Name1
                                       Line 2 Vendor Name1



This example applies when the vendor
returns a W-9 with information in
both Line 1 and Line 2.

                                               See handout
                   W-9 & Alternate Names
   W-9 Line 1 Name – If different from the Business Name on Line 2
   – Enter this on the Withholding Alternate name under the
   Address Tab

The Vendor W-9
Line1 Name
should not be
entered in
Vendor Name 2.
     Vendor: John Smith Root Removal
     Owner: Leroy Jones        SSN: 123-45-6789
     123 3rd Street
1)   Madison, WI 53715
     Vendor: Global Rental LLC             EIN: 39-6549328
     Owner: Ginger Smith (sole proprietor) SSN: 987-65-4321
     894 9th Ave
2)   Milwaukee, WI 53211
     Vendor: ABC Company    EIN:39-1234567
     Owner: Rebecca Smith   SSN: 654-12-3789
     541 Smith St
     Fremont, WI 54940
            Paying Employees of Other
• Communicate Policy with campus
• Now have a unique search tool, Employee Full
  Search. Select vendor classification of
               Vendor Name2/Withholding
• 1099 Issue in 2009
   –   Misunderstanding of Name1 and Name2
   –   Problems with programming
   –   Names had to be fixed
   –   New rules

• 1. Use Withholding Name1 and Withholding Name2, if
  Withholding Name2 is not populated, stop. If
  Withholding Name1 is not populated, use Name1.
• 2. Use Name1and Name2, if Name2 is not populated,
Vendor Name 1 and Name2
                Bad Example - In
                this case, vendor
                Name1 is
                individual name
                but tax id is an
                FEIN. 1099 name
                is combination of
                individual name
                and business
Vendor Name 1 and Name 2
Vendor Name 1 and Name 2
             In this example – can
             not be sure without
             the W-9 – but the
             vendor is entered as
             an individual/sole
             proprietor with an
             FEIN and Withholding
             Control name of HLIN
             but 1099 name is
             Leaning Pine Native
                      Vendor Cleansing
• There is currently no system policy
• Recommendations
  1. Inactivate vendors with no vouchers in the last 3 – 5 years
  2. Request new W-9 periodically (3 to 5 year rotation)
     especially withholding vendors
• Vendor cleanup may become more important because:
   – “Beginning in 2012, under a little discussed mandate of the
     health care reform legislation, businesses will be required
     to report all payments in excess of $600 for services or
     merchandise to the Internal Revenue Service on a Form
     1099.” --- Accountingweb.com
   – Legislation is being proposed to repeal this provision
• Wisc DOR publication 508
• Stage and real name of nonresident entertainer
  doing business in Wisconsin
• Include SSN if individual or EIN for partnership or
   – No SSN, still required to withhold
      • Will delay “matching” when nonresident tax return is filed
• File within 5 days after the performance
• Do NOT send a copy to UWSA
• IRS Vendor Name / TIN Mismatches
• 1099 Reporting
   – Entertainer Tax
   – 1099-MISC cleanup
• Paying Vendors with Tax Levies
• Payment / Tax Reporting of Legal Settlements
• 1042S Non-Resident Alien Reporting
        IRS Name/TIN Mismatch
•B Notices (Per IRS Publication 1281)
•28% Back-up Withholding
•File on UW System Administration secure Net
Storage site. Please contact your Controller’s
Office for access and login information.
•IRS e-services on-line name / TIN matching
•Registration steps
    •    Apply at http://www.irs.gov/
    •    UWSA adds campus rep under UW EIN
Sample Interactive Matching Request Page
Results Page (returned instantly)
                1099 Reporting
• 1099-MISC Form and Associated Instructions:
   – Form:
      • http://www.irs.gov/pub/irs-pdf/f1099msc.pdf
   – Instructions:
      • http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

• UW-Madison Tax Information Web Page
             1099 for Entertainer Tax
• Enter name of whoever the check is issued to
• Likely to be Agent
  – Agent, acting as nominee/middleman, will in turn,
    issue 1099 to Nonresident Entertainer less Agent
    share, also without State Tax Withheld box completed
• 1099 equals amount of fee for service
  – Do not include travel reimbursement accounted to the
    campus or direct billed from 3rd party vendor
• Do not enter WT-11 estimated tax (withheld)
  amount in State Tax Withheld box 16
                  1099-MISC Cleanup
• Add or Update Records in the Tax database bolt-on
   – Adding 1099-MISC records:
      • Navigate to “Add a New Value.”
      • Enter Tax Year, Tax ID, Payment Date, Taxpayer
        Name, and Business Unit.
   – Update an Existing 1099-Misc:
      • Navigate to “Find an Existing Value.”
      • Enter the Tax Year.
      • Enter any known information to search.
              New Levy Procedures
• Vendor Levies are one time levies so no levy
  list is maintained
• When UWSA receives a levy they:
  • Check 1099 detail record to see when vendor was
    last paid and by what campus
  • If an individual, check to see that the individual is
    not currently an employee
  • Check SFS to see if any recent payments have
    been made
  • Email campuses to see if there are any
    outstanding invoices or check not mailed
           New Levy Procedures (cont.)
• If no payments are due, UWSA will complete the levy
  and return to the IRS
• If payments are due, UWSA will fax a copy of the levy
  to the campus to be enclosed with the invoice and a
  note to the vendor stating we have received this levy
  and are forwarding the payment of this invoice to the
  IRS. The campus will then issue a check payable to
  the United States Treasury and forward the check to
  UWSA, Attn Levy Accountant. UWSA will complete
  the levy and send the check to the IRS.
“For income other than wages and salaries and benefit
  and retirement income …, this levy is effective only
  for funds you owe the taxpayer now.” -- Levy
  instructions on Part 1 of the Levy notice
Withholding, Tax Levies, Entertainer Tax, 1042S
  and Creating a Voucher with Split Payments
               for Deducted Tax
                                     IRS Tax Levies
Type of Withholding               Pay to and                         Additional Information
                      send tax W/H check and/or forms to

  IRS Tax Levies        Check Payable to U S Treasury      Vendor Levies are one time levies so no
                                                           levy list is maintained.
                         Send the check to UW-System
                                                           When UWSA receives a levy they:
                            Attn: Levy Accountant
                                                           Check 1099 detail to see when vendor
                                                           was last paid. If an individual, check that
                                                           they are not currently an employee.
                                                           Check SFS for recent payments. Email
                                                           campuses to see if there are outstanding
                                                           invoices or checks not mailed.
                                                           If no payments are due, UWSA will
                                                           complete the levy and return to the IRS.
                                                           If payments are due, UWSA faxes copy
                                                           of levy to campus to be enclosed with the
                                                           invoice and a note to the vendor stating
                                                           we are forwarding payment of the invoice
                                                           to IRS. Campus issues check payable to
                                                           US Treasury and forward to UWSA, Attn
                                                           Levy Accountant. UWSA completes levy
                                                           and sends check to the IRS.
                           28% IRS Back-up Withholding
     Type of Withholding                    Pay to and                        Additional Information
                                send tax W/H check and/or forms to
28% IRS Back-up Withholding              Check Payable to            UW-System manages all payments to
when vendor will not supply a              UW-System                 the IRS. Be sure to include vendor
  Tax Identification Number
                                                                     information. All Vendors must be
                                   Send the check to UW-System
                                       Attn: Tax Accountant          marked withholding and we must
                                                                     issue a 1099-MISC. IRS Link:
                                                                     ,id=110339,00.html The UW Tax
                                                                     Information web page at
                                                                     html has the UW Backup Withholding
                                                                     (28%) for Payments to U.S. Tax
                                                                     Residents procedure. This Tax
                                                                     Information web page has more easily
                                                                     understood specific information for
                                                                     campus users
   Type of Withholding                 Pay to and                         Additional Information
                           send tax W/H check and/or forms to
         1042S                      Check Payable to            UW-System manages all payments to the
Non-Resident Alien (NRA)              UW-System                 IRS. Be sure to include vendor
       payments                                                 information when sending a payment for
                            Send the 1042S worksheet and the    taxes withheld to UW-System. Follow
                           check for NRA tax deduction to UW-   instructions on the Tax Information web
                              Madison, Attn: Jose Carus, Jr.    page at
                                                                under the flowchart in the How-To
                                                                section. This flowchart will guide you
                                                                through (1) what documentation is
                                                                required for payments to NRA’s, (2) what
                                                                taxes are applicable if no tax treaties exist
                                                                between the U.S. and the NRA’s country
                                                                of residence for tax purposes, and (3) if a
                                                                tax treaty exists then what forms are
                                                                required to take advantage of the tax
                                                                UW-System must report all payments
                                                                made to NRA’s. See The UW Tax
                                                                Information web page at
                                                                under Year End Tax
                      Wisconsin Entertainer Tax
Type of Withholding                 Pay to and                           Additional Information
                        send tax W/H check and/or forms to
   Wisconsin            Check Payable to and send check to   Institutions must deduct 6% of payments to
  Non-Resident           WI DOR with a completed WT-11.      nonresident entertainers if accumulated
 Entertainer Tax          (Do not send a copy to UWSA.)      payments for entertainment services exceed
                                                             $3,200 (including travel reimbursements) in a
                                                             calendar year and the entertainer has not filed
                                                             WT-11 with a surety bond or cash deposit, or
                                                             provided a waiver from the Department of
                                                             Revenue. Each institution must institute a
                                                             procedure for accumulating payments to
                                                             nonresident entertainers to determine if the
                                                             $3,200 limit has been reached.
                                                             The 6% tax deduction must be sent to the
                                                             Department of Revenue with a completed WT-
                                                             11 and a copy of the WT-11 must also be sent to
                                                             UW-System. The WT-11 and instructions are
                                                             located at
                                                             See Appendix 4 for additional information.
                                                             The status of the Payee (Entertaine r or
                                                             Agent) determines if the payee also must be
                                                             set up for withholding and will also receive a
               Voucher with a Split Payment

voucher as
usual. Then
go to
Payment tab
to split the
Voucher with Split Payment

                    Add another
                    payment pane
Voucher with Split Payment
              Payment / Taxation of Legal Settlements

• Federal Tax News article July/August 2009
   – Step 1: Determine character of payment and nature of
   – Step 2: Determine whether payment constitutes item of
     gross income.
   – Step 3: Determine whether payment is wages for FICA and
     income tax withholding purposes.
   – Step 4: Determine appropriate reporting for payment and
     any attorney’s fees that may be paid to or on behalf of

• http://www.irs.gov/pub/lanoa/pmta2009-035.pdf
Payment / Taxation of Legal Settlements
Payment / Taxation of Legal Settlements
             Non-Resident Alien (NRA)

• Three (3) most important things to remember when
  dealing with Nonresident Aliens (NRA’s):

   – Proper planning, asking questions, and research are the
     most important things to remember to do before inviting
     an NRA to your campus.

   Note: Campus personnel have a tendency of inviting people
     before asking the business office about requirement for
     NRA’s. Educating, training, and informing your campus
     personnel on NRA requirements are critical so your
     campus does not invite someone that we cannot pay.
           Non-Resident Alien (NRA)

• The Visa status of the NRA on their current
  trip to the U.S. regulates what can and can’t
  be paid to the visitor.

• Keep track of information to payments to
  NRA’s. This is needed for reporting NRA
  income at calendar year end for tax reporting
                 Non-Resident Alien (NRA)
Resources Available to Address Nonresident Alien (NRA) Issues

• University of Wisconsin-Madison Tax Information web page:
• http://www.bussvc.wisc.edu/acct/tax.html

Tax Information Web Page

• This web page is meant to address items that are important to campuses
  and departments. Comments are always welcomed so that this is a useful
  tool for you and your campus to use.

• For payments to NRA’s the most important link on the Tax Information
  web page is the first link in the How-To section labeled Determine Which
  Tax Related Documents are Required When Making Non-Payroll Payments
  at UW-Madison. If you had only one document this would be the one you
  would want!
                   Non-Resident Alien (NRA)
• 1042-MISC Form and Associated Instructions:
   Form:                     http://www.irs.gov/pub/irs-pdf/f1042s.pdf
   Instructions:             http://www.irs.gov/pub/irs-pdf/i1042s.pdf

• Tax Reportable Transaction Listing:

• Scholarships/Fellowships (Account Codes 57xx):
  Reporting for U.S. Residents:                Not Required on 1099-MISC
  Reporting for Non-Resident Aliens (NRA’s):    Report on 1042-S Form

• Keeping track of and identifying 1099-MISC vs. 1042-S
  Transactions on SFS and SFS Tax Table.
                Non-Resident Alien (NRA)
• Do we take out both Federal and State Taxes for NRA’s?

    No, with one exception. This exception is that we must withhold
      Federal Taxes and the 6% required if the NRA is also a Non-
      Resident of Wisconsin Entertainer. For these, we take out both
      Federal taxes and if required to complete a WT-11, then we
      must also take out the 6% tax required by DOR on the WT-11.

• Federal Tax Rates for NRA Transactions:
               Services = 30%
               Scholarships/Fellowships = 14%
               Prizes/Awards = 30%
               Royalties = Based IRS Publication 901, Table 1
               Other Income = 30%
               Non-Resident Alien (NRA) Cleanup
•   During the year SFS users must mark all Tax Reportable Transactions as
    Withholding (Must mark both the Vendor and the Transaction as Withholding for
    the transaction to be downloaded to the SFS Tax Table for 1099-MISC and 1042-S

•   Once the SFS Withholding transactions are downloaded at the end of each
    calendar year, users will receive an e-mail asking them to go into the SFS Tax Table
    and change the designation of all Non-Resident Alien tax reportable transactions
    from 1099-MISC to 1042-S.

•   After changing the designation the users are also required to complete the 1042-S
    screen of the SFS Tax Table for each transaction.

     Important Notes:
     Users must keep track of and be able to identify the NRA transactions and
        relevant 1042-S required information because SFS does not.

     The amount report on the 1099 panel should be the total gross amount including
       the federal and/or state tax withheld. Then on the 1042S panel the Federal
       and/or State tax amounts are recorded.
•   1099-MISC Reporting:                  Bryan Peters, Eric Engbloom, Janet Larson

•   1099-MISC Cleanup:                    Bryan Peters, Eric Engbloom, Janet Larson

•   W-2 Reporting:                        Janet Larson, Bryan Peters, Eric Engbloom

•   W-2 Cleanup:                          Janet Larson, Bryan Peters, Eric Engbloom

•   Moving Expense Reporting:             Eric Engbloom

•   Support Org / Foundation Reporting:   Eric Engbloom

•   Value Added Tax:                      Terri Gill

•   Tax Levies:                           Bryan Peters

•   Entertainer Tax:                      Bryan Peters, Eric Engbloom

•   Non-Resident Entertainer Reporting:   Bryan Peters, Eric Engbloom

•   Non-Resident Entertainer Cleanup:     Bryan Peters, Eric Engbloom
•   Jose A. Carus, Jr. (UW Madison, Tax Compliance Manager, jcarus@bussvc.wisc.edu)

•   Eric Engbloom (UW System Administration, Accountant Advanced, eengbloom@uwsa.edu)

•   Terri Gill (UW System Administration, Accountant/Systemwide Policies/Travel, tgill@uwsa.edu)

•   Ginger Hintz (UW System Administration, Financial Reporting Director, ghintz@uwsa.edu)

•   Janet Larson (UW System Administration, Accountant Advanced, jlarson@uwsa.edu)

•   Bryan Peters (UW System Administration, Accountant Advanced, bpeters@uwsa.edu)
                                WISDM - Help

Help – reference documentation on-line
WISDM - Voucher Search
WISDM - Voucher Search
WISDM – PO Search
WISDM – PO Search
             WISDM Enhancements
• PO Display Buyer Name instead of Buyer ID
• Vendor – W9 on file available at vendor search
  (coming soon)
• Image Now link for Invoice images – working
  with UW- Stout. Opportunity to allow other
  campuses to also use this functionality.
• Questions?
• Comments on WISDM Help.
• What other training would be useful?

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