1099 Year End Services (2023 Update)

Overview

• SDP's 1099 Services
• 1099 Service Pricing

• 1099 Service Enrollment Requests

• Customer Service Support Steps

• Attached Excel Spreadsheet

SDP's 1099 Services

We offer 1099 Year End Services by our Accounting team supporting the following IRS 1099 Forms via E-Filing. IRS has changed their Filing options starting January 1st, 2024 to require all Information Filings including 1099 Series and W-2s to be filed electronically for 10 or more consolidated filings. 
For other 1099s forms, check with Accounting if supported

• 1099 NEC - Use Form 1099-NEC to report nonemployee compensation.
• 1099 MISC - File Form 1099-MISC for each person to whom you have paid during the year:
  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
  • At least $600 in:
    • Rents.
    • Prizes and awards.
    • Other income payments.
    • Medical and health care payments.
    • Crop insurance proceeds.
    • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
    • Payments to an attorney.
    • Any fishing boat proceeds.

  • In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

This service is NOT an automatic process and there request is our only trigger to process these forms. Clients who processed last year have been notified, but confirmation from each client is required before 1099 services are provided.

1099 Service Pricing

• 1099 Processing Fee for All Clients: $125.00 Base plus $10.00 per Each 1099
  •  To match the accountability and commitment to serve our clients with unrivaled performance, SDP has raised prices for 1099 Services from previous years. 
  • Please Notify a Supervisor if client has a complaint about the increase in pricing.

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• Delivery Fee: 
  $18.00 Courier Fee for next Day Delivery (All Clients are subject to delivery fee, unless client specifies for Pick Up) 

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• Late Submissions received after the 12th of January:
  • Delivery by 31st of January is guaranteed
  • $75.00 Late Additional Fee (Base Fee + Late Fee + per Form Fee) 

• Any request on/after the 22th of January:
  • $150.00 Late Additional Fee (Base Fee + Late Fee + per Form Fee) 
  • Delivery by 31st of January is guaranteed

• Requests on/after the 26th of January:
  • Delivery is not guaranteed to be provided before IRS deadlines. 
  • Estimated turn around time for all requests, is Five (5) Business days   
    • • $200.00 Late Additional Fee (Base Fee + Late Fee + per Form Fee) 
      • Delivery not guaranteed by 31st of January 

• ADJ Fee for Corrections: 
  $150.00 ADJ Fee + per 1099 fee (see clients 1099 billing) and includes updated E-File Submission
  Ex:  1 1099 Correction Need:  $150.00 + $10.00 + $18.00

1099 Service Enrollment Requests

We can assist clients with 1099 for Contractors within our Payroll System as well as those never added to Payroll.  Enrollment Request and Contractor Payment Information must be received by January 12th of each year for the prior year (example: Enroll by 1/12/24 for 2023 tax year)

1. Contractors that are in Payroll System and paid 1099 Wages - Accounting Team will create Report Writer report for 2023 1099 Wages that Client will need to confirm accuracy prior to 1099s being filed.
   It's important that for 1099s paid out of payroll system they have the following:

• • • 1099 compensation can only be paid on a "1099 Wages" Earning Code that is blocked from all taxes.
    • Tax Form Information (EE Profile > Misc tab) is set up as 1099M or 1099R
      • Any employee that received 1099 Wages but are recorded as W2 employees must be adjusted to create separate employee profiles for recording the separated wages. Please contact a Supervisor if you need assistance with this Adjustment. 
    • Verify that Contractor profile Demographics includes valid FEIN(Federal Employer ID Number) or SSN(Social Security Number), Full Legal Name, and Address prior to requesting enrollment.

2.  Contractors not in Payroll System - Client will need to provide us with an excel spreadsheet that includes the employee’s full name, complete address, social security number, and gross wages (i.e. box 1 on the 1099 form).  Client can use last column to note 1099 box information as needed
Note that each part of the address must be in a separate cell as we import this spreadsheet into the 1099 software (below is a sample).

Attached below is a blank 1099 spreadsheet that you can forward to the clients for them to complete. Or the clients can use their own excel as long as the following columns are defined

(1099 Template Attached)

Customer Service Support Steps

1) Ensure to follow all Ticket Documentation Standards and include all details in ticket.  

2) Obtain Confirmation through email in regards to SDP Filing on the client's behalf as well as the applicable fees associated with this service.

3) Send the ticket to Tax Queue:

• Contractors Not In Payroll System: Send ticket once you receive the full and completed excel spreadsheet from client. 
• Contractors that are in Payroll System and paid 1099 Wages: Send ticket once you receive the confirmation that all system information is accurate. 

4) For clients wanting to be added to AUTO List, please task Tax Queue "Please Add Client to 1099 Auto List for future 1099 Services"

Attached Excel Spreadsheet