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Administrator Guide
Last Updated: 2024-09-20
Map 1099 Categories to Spend Categories and Hierarchies

Map 1099 Categories to Spend Categories and Hierarchies

  • Review the IRS form 1099 MISC and 1099 NEC instructions for the current tax year to verify threshold amounts for each category.
  • Security:
    Set Up: Payee Tax Authority Information
     domain in the Supplier Accounts functional area.
You can update your 1099 configuration when:
  • You set up 1099 reporting.
  • The IRS releases new versions of the 1099 forms with new or updated:
    • Boxes.
    • Threshold amounts.
  • You change your spend categories and spend category hierarchies.
  1. Access the
    Update 1099 Configuration
     task.
    As you select a 1099 configuration, consider:
    Option Description
    Excluded Payment Types
    You can exclude the payment types on which you report separately.
    Workday excludes the payment types that you select from all the 1099 form types and all the effective periods.
    Effective Period
    Workday adds effective periods as the IRS updates their 1099 forms.
    Category Mapping
    Click this option when you meet 1 of these conditions:
    • You don't need to set minimum threshold amounts for any IRS box.
    • Each threshold applies to 1 IRS category.
    Aggregate Category Mapping
    Click this option when you need to set at least 1 threshold amount across several IRS boxes combined.
  2. As you complete the task, consider:
    Option Description
    IRS 1099 Category
    Select an IRS 1099 box on which you report for your selected effective period.
    Spend Category or Hierarchy
    You can map 1 or more spend categories or spend category hierarchies to a single IRS 1099 category.
    You can't select a spend category or spend category hierarchy that you've already mapped in either form type for your selected effective period.
    Threshold
    Enter the amount that your yearly payments to a 1099 payee in your selected IRS 1099 category must meet or exceed to be reportable.
    IRS 1099 Aggregate Threshold
    Enter the amount that your yearly payments to a 1099 payee across all your selected 1099 categories must meet or exceed to be reportable.
Workday includes in your 1099 returns the amounts:
  • That meet or exceed the thresholds that you've defined.
  • For spend categories or spend category hierarchies that you've mapped to IRS boxes.
In 2020, you pay a supplier invoice with a
Legal and Auditing Fees
 spend category on the transaction line. When you pay the invoice, Workday reports the line amount in
Box 10: Gross proceeds paid to an attorney
 on the IRS form 1099 MISC for that supplier.
Run the
View 1099 Configuration
 report to review your mapping of spend categories and spend category hierarchies to IRS boxes, including threshold amounts.