Last updated: March 7th, 2024
Printing 1096 and 1099 Forms in Sage 50
With the advancements in accounting technology, small businesses can now operate from anywhere at any time. Sage 50, formerly known as Peachtree, is one of the most advanced accounting software available today. It allows wholesale distributors to easily manage payroll, bookkeeping, and payments, along with many other innovative features that simplify annual tax filing. In this blog post, we will guide you on how to print 1096-1099 forms in Sage 50.
Understanding 1096 and 1099 Forms
Form 1096 is used to summarize the 1099 forms that you send to the IRS for your 1099-type vendors. A vendor, also known as a 1099, is someone who works for you but is not classified as an employee. If you pay any of these vendors more than $600 in a fiscal year, you are required to send them an IRS Form 1099. This is why these vendors are commonly known as 1099 vendors. You must provide Form 1099 to maintain your accounting records, even if they are paid only up to $600.
Printing Form 1096 in Sage 50
Form 1096 is generally required when submitting paper 1099 forms and is mandatory in most cases. To mail your 1099s to the IRS, bundle them together and include a separate 1096 for each set. The 1096 form is machine-readable and should always be printed on preprinted paper rather than plain paper. Follow these steps carefully to print the form accurately and avoid errors:
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Insert the preprinted blank 1096 form into your printer. Sage 50 provides both a preprinted form and a preaddressed form. Learn how to order preprinted federal forms.
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Go to the Reports & Forms menu and select Forms.
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Click on Tax Forms.
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In the Select a Report or Form window that appears in Sage 50, choose either Form 1096 – Preprinted or Form 1096 – Preaddressed Preprint from the Forms list. Sage 50 will display the Preview and Print filter screen.
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Verify that the payroll year is correct.
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Enter the name of your company's contact person, which will appear in the "Name of person to contact" field on the printed 1096.
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If you want to manually change the lower limits set by the federal government, click the Alter Limitations option.
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In the 1096 Lower Limits window, set the lower limits as desired. In the Payment Method filter, include the same payment types that you specified when creating the 1099s.
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After configuring the filter pane, click Print/Email.
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Sage 50 will show the default printer in the Print dialog box. To print to a different printer, click the drop-down arrow in the Name column and select a new one. Otherwise, click OK to start printing the forms.
Printing Form 1099 in Sage 50
Before printing 1099 forms, make sure your Sage 50 forms are up to date with federal standards by installing the latest Sage 50 updates. Generate your vendor 1099 forms before the end of the payroll (calendar) year. Follow these steps carefully to print the 1099 form correctly:
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Load your printer with pre-printed blank 1099 forms.
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From the Reports & Forms menu, select Forms, then Tax Forms.
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Choose between the IRS-required 1099-MISC and 1099-INT forms (used to generate 1099 interest income statements for vendors).
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In the Select a Report or Form window, click the Preview and Print button below the sample image.
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Confirm that the payroll year is correct.
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Use the Alter Restrictions tool to manually change the lower restrictions set by the federal government.
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In the "Filter vendors by" section, select or enter a range of vendor IDs or leave it as "All Vendors."
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In the Payment Method filter, select the types of payments to include when generating 1099s.
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After setting up the filter pane, click Print/E-mail.
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Sage 50 will display the default printer in the Print box.
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To print to a different printer, use the drop-down arrow in the Name column to select one.
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Finally, click Ok to begin printing the forms.
If you receive a message stating that there are no forms to print, it might be because you don't have vendors set up as 1099-type vendors or the 1099 vendors don't meet the minimum payment requirements. To print multiple copies, repeat the above steps.
Important Points to Remember
- Form 1096 is required when submitting paper 1099 forms. When mailing 1099s to the IRS, bundle them together and include a separate 1096 for each batch.
- Form 1096 is machine-readable and should always be printed on preprinted paper, not plain paper.
Frequently Asked Questions
1. Can I create my own 1099 forms?
The official printed version of this IRS form is scannable, but a copy printed from their website is not. Do not print and file a Form 1096 downloaded from the IRS website, as a penalty may be imposed for filing information returns forms that cannot be scanned.
2. What is included in Sage 50 predefined 1096 forms for printing 1099 forms?
Sage 50 provides two predefined 1096 forms for printing 1099 forms:
- 1096 Form Preprinted: Use this form if you want to fill in your address or attach an address label to the form's area.
- 1096 Preaddressed: This form has your company name and address preprinted on it.
3. How do I enter the Tax ID or Social Security Number for a 1099 vendor?
To enter the Tax ID or Social Security Number for a 1099 vendor, follow these steps:
- Enter the Tax ID Number for a 1099 vendor.
- Enter the Social Security Number for a 1099 vendor.
- The 1099 vendor tax payer identification number (TIN) should be entered in the designated field.
- Enter the Federal ID for a Vendor in the appropriate field.
- Enter the vendor's tax ID number that needs to print on the 1099 form in the specified field.
- The Employee Identification Number (EIN), Social Security Number (SSN), or tax number for the 1099-MISC or 1099-INT form should be entered in the designated field.
By following these steps and understanding the importance of 1096 and 1099 forms, you can easily print these forms in Sage 50 and maintain accurate accounting records for your business.
