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Administrator Guide
Last Updated: 2024-09-20
Create 1099 Adjustments

Create 1099 Adjustments

  • Set up 1099 payees.
  • Configure the
    1099 Adjustment
     business process and security policy in the Supplier Accounts functional area.
When you can't update transactions directly in Workday, you can create 1099 adjustments with positive or negative amounts to:
  • Correct 1099 amounts:
    • Federal and State.
    • Income and tax withheld.
  • Move amounts from an IRS category to another.
  • Move amounts from a 1099 form to another 1099 form.
  • Include balances in your 1099 forms for payments that you've made in third-party applications.
1099 adjustments don't impact accounting. You can make 1099 adjustments regardless of the status of your ledger periods.
  1. Access the
    Create 1099 Adjustment
     task.
  2. As you complete the task, consider:
    Option Description
    Adjustment Date
    The
    Adjustment Date
     that you enter determines in what calendar year Workday reports the 1099 adjustment.
    Memo
    Include a memo that describes the adjustment, such as:
    • A reclassification of spend categories.
    • A reclassification of spend category hierarchies.
    • An opening balance for a 1099 recipient that you added to Workday midyear.
    Federal Tax Withheld
    You can enter a positive or negative amount.
  3. Complete the
    Federal Income
    ,
    State Income
    , and
    Attachments
     tabs as applicable.
  • You realize that you've reported travel expenses in the
    Legal and Auditing Fees
     spend category on a supplier invoice that you've already paid. You don't need to report travel expenses in 1099 forms, so you create a 1099 adjustment with:
    • A negative
      Federal Income
       amount.
    • The
      Legal and Auditing Fees
       spend category.
    • A memo that indicates why you created the adjustment.
    • A copy of the receipt in the
      Attachments
       tab, for auditing purposes.
  • You want to move amounts from the 1099 MISC form to the 1099 NEC form. You create:
    • A negative adjustment on the 1099 MISC form.
    • A positive adjustment on the 1099 NEC form.
  • Preview 1099 payment details to verify your 1099 amounts and categories after adjustment.
  • Run the
    Find 1099 Adjustments
     report to locate adjustments that you need to change or cancel.
  • When you're ready, create 1099 runs.