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Administrator Guide
Last Updated: 2024-09-20
Steps: Set Up 1099 Reporting

Steps: Set Up 1099 Reporting

  • Review setup considerations for 1099 Reporting.
  • Obtain an IRS tax ID transmitter control code for companies that file 1099 returns.
  • Set up transaction and withholding tax codes and tax rates for the IRS and all the states where you report 1099 income. See Steps: Set Up Transaction Taxes and Steps: Set Up Withholding Taxes.
You can set up and review your 1099 reporting configuration every year before you start processing your 1099 returns.
  1. When you opt in to the Combined Federal/State Filing (CF/SF) program, create tax authorities for all the states that you include in your combined return.
  2. Map 1 or more spend categories or spend category hierarchies to each category box on IRS forms 1099 MISC and 1099 NEC.
  3. Map:
    • Your federal tax authority to federal withholding.
    • Your state tax authorities to state withholding.
    Workday supports the automatic withholding tax calculation only on supplier invoices.
  4. Add the federal and state tax identification numbers for each company that files 1099 returns.
  5. (Optional) Access the
    Edit 1099 and 1096 Print Form Layout
     task.
    Change the print layouts for the reporting year.
    Security:
    Reports: Supplier Accounts 1099 - USA
     domain in the Supplier Accounts functional area.
  6. Set up an integration system to generate 1099 files.
  8. Preview 1099 payment details.
  9. When you migrate to Workday midyear, adjust your 1099 spend categories and opening balances.
Workday includes payments in your 1099 returns when they meet all these criteria:
  • You issue these payments to 1099 payees.
  • They include spend categories that you've mapped to IRS 1099 categories.
  • They include a tax code that you've mapped to a federal tax rate.
  • They include a tax code that you've mapped to a state tax rate, when you report to states. When you don't withhold state tax, use a tax rate of zero percent.
  • You pay or settle these payments during the reporting year.
  • They have a status of
    Accepted
    , when you use the payment acknowledgment feature.
  • Create 1099 runs.
  • Print 1099 forms for your payees.
  • Generate 1099 electronic files for the IRS.