Benjamin Franklin famously said, “nothing is certain except death and taxes.” If 1099s had been around in the 18th century, Mr. Franklin would have added the annual process of filing IRS Form 1099s to the list of life’s certainties for small business entrepreneurs.
In brief, each year IRS regulations require businesses to provide a 1099 to individuals and unincorporated business partners who are paid $600 or more for qualified expenses during the calendar year. Information from 1099s is shared with the IRS to help ensure that all income is reported to the IRS by individuals and businesses. What makes this process especially difficult for business owners is that the 1099 filing deadline presents itself at the end of January each year.
We experience the crush annually. The holidays end, the prior years’ books need to be closed, leaving small business owners only a week or two to file 1099s before the IRS deadline. Ceterus knew there was a better way.
In 2020, we introduced 1099 Manager in Ceterus Edge to allow our customers to comply with IRS deadlines with reduced effort by embedding this powerful tool to streamline the filing process. Ceterus 1099 Manager made it easy for our customers to verify their legal entities and the related operating units, understand the population of potential 1099 recipients, and review summary data of monies paid to those vendors in the prior year. We provided early access to this information and, as the deadline approached, Ceterus filed relevant 1099s and provided online visibility to our customers as to the status of filings.
We have now improved 1099 Manager by making current year data available in Edge starting May 1. By presenting year-to-date vendor data early in the year, our customers can begin the review process separate and apart from year-end demands. Although transaction data is not complete until the calendar year ends, visibility in Edge allows business owners to begin the review process early to get a head start and without an immediately pending deadline.
For each vendor in Ceterus Edge, these enhancements allow you to see:
a running balance of amounts paid (with details available)
whether you have provided the necessary W9 providing necessary vendor tax information required to file the 1099
prior year totals for comparison
1099 Manager and these new improvements ease the 1099 burden on our customers. To learn more, please visit the 1099 Section of our support site.