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Administrator Guide
Last Updated: 2025-12-12
Setup Considerations: 1099 Reporting

Setup Considerations: 1099 Reporting

You can use this topic to help make decisions when planning your configuration and use of 1099 reporting. It explains:
  • Why to set it up.
  • How it fits into the rest of Workday.
  • Downstream impacts and cross-product interactions.
  • Security requirements and business process configurations.
  • Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is

The 1099 reporting feature generates IRS 1099 forms from your payments to suppliers, contingent workers, investors, ad hoc payees, and miscellaneous payees.

Business Benefits

  • Helps you maintain IRS compliance when filing 1099-MISC and 1099-NEC forms.
  • Reduces the administrative burden of exporting payment data to third-party applications.
  • Supports data integrity by automatically calculating the federal and state income and tax withheld amounts from your Workday data.

Use Cases

As your organization prepares for 1099 processing:
  • You run the
    1099 Audit Report
     to ensure that you've correctly configured your 1099 payees. You find 1099 payees who are missing a primary address or tax ID number. You update these payees and rerun the
    1099 Audit Report
    .
  • You preview 1099 payment details. You identify that a reportable payment that happened in a legacy system is missing. You create a 1099 adjustment so that the 1099-NEC form issued to the payee reflects everything your organization has paid them this year. You preview 1099 payment details again and continue to make corrections to your configuration, payees, and payments as necessary.
  • You generate a test file from Workday and upload it to the IRS FIRE test system during the test period.
  • You generate a file from Workday and upload it to the IRS IRIS Taxpayer Portal.
As your organization starts 1099 processing:
  • You generate 1099-MISC and 1099-NEC forms that you print and mail to all your 1099 payees. You select Copy B and print on blank paper with truncated tax IDs.
  • You generate electronic 1099-MISC and 1099-NEC forms in Workday and upload them to the IRS FIRE system or IRS IRIS Taxpayer Portal.
After you mail the 1099 forms to payees and file with the IRS:
  • A supplier contacts you because they never received their 1099 form. You reprint the 1099 for this individual payee.
  • A supplier calls your organization to let you know that their 1099 form erroneously reports them as FATCA. You create a supplier change in Workday, print a corrected form for the payee, and generate a corrected file that you submit to the IRS.
  • You realize that you missed a payee. You create an additional 1099 run, print a 1099 form that you mail to the payee, and generate an electronic 1099 file for the missed payee only, which you upload onto the IRS FIRE system or IRS IRIS Taxpayer Portal.

Questions to Consider

Questions
Considerations
What 1099-MISC and 1099-NEC boxes do you report on?
With the
Update 1099 Configuration
 task, you can:
  • Map spend categories or spend category hierarchies to boxes on the 1099 forms.
  • Specify threshold amounts across 1 or more categories.
Workday excludes forms with excess golden parachute payments from FIRE electronic files, as these amounts can no longer be submitted to the FIRE system. You must file these 1099 forms separately. See Generate 1099 Electronic Files.
How do you submit your 1099 information returns to the IRS?
Workday enables you to:
  • Generate electronic 1099 forms that you can download and manually e-file with the IRS FIRE system or IRS IRIS Taxpayer Portal.
  • Print 1099 forms for your payees.
You can file for multiple companies under a single transmitter control code.
Do you file 1099 returns to states that participate in the Combined Federal/State Filing (CF/SF) Program?
Workday can generate electronic 1099 returns that meet the CF/SF Program requirements.
When you consolidate supplier payments on behalf of multiple companies to the same supplier, which company issues the 1099 form?
Workday populates the payer on 1099 forms with the company that pays the invoice or creates the settlement run.

Recommendations

  • When you migrate to Workday midyear and load initial 1099 balances with 1099 adjustments:
    • Create 1 adjustment in Workday for each legacy payment.
    • Enter the legacy payment information in the memo field so you can refer to it later.
  • Use 1099 adjustments only when you can't correct the original transaction in Workday.

Requirements

To file electronically with the IRS:
Set up transaction and withholding tax codes that contain tax rates for these tax authorities:
  • The IRS.
  • States where you report 1099 income.
See Steps: Set Up Transaction Taxes and Steps: Set Up Withholding Taxes.
For Workday to include a payment in a 1099 form for a reporting year and a federal or state tax authority, you must:
  • Include the payment in 1 of these transactions:
    • 1099 adjustments.
    • Ad hoc payments.
    • Miscellaneous payments.
    • Supplier invoices.
  • Set up the recipient of your payment as a 1099 payee.
  • Select spend categories and amounts that you've mapped to IRS 1099 categories.
  • Use a tax code that you've mapped to:
    • A federal tax rate.
    • A state tax rate, when you report to the state.
    Workday uses the tax code on your payment to determine the tax authority to which you report the payment. Example: You report payments with no withholding tax to California. You use a tax code that contains the federal tax rate and a California state tax rate of zero percent.
  • Pay or settle the transaction during the reporting year.
    Workday uses the payment date for 1099 reporting, not the transaction date. Example: An independent contingent worker submits a supplier invoice on December 25 and your company pays it on January 2. The payment applies to 1099 reporting for the new year.
  • Ensure that the payment has a status of
    Accepted
     when you use the payment acknowledgment feature.

Limitations

Workday only supports these forms:
  • 1099-MISC.
  • 1099-NEC.
  • 1096.

Tenant Setup

No impact.

Security

Domains
Considerations
Reports: Supplier Accounts 1099 - USA
 and
Set Up: Payee Tax Authority Information
 in the Supplier Accounts functional area.
Users with access on both domains can select 1099 and 1096 form layouts.
Reports: Supplier Accounts 1099 - USA
 in the Supplier Accounts functional area.
Users can:
  • Use the
    1099 Work Area
    .
  • Run the
    1099 Report
    .
  • Run the
    1099 Audit Report
    .
  • Create 1099 runs.
  • Create corrected 1099 runs.
  • Print 1099 and 1096 forms.
Reports: Supplier Accounts
 in the Supplier Accounts functional area.
Users can run the
Duplicate Supplier Taxpayer ID Number Report
.
Set Up: Payee Tax Authority Information
 in the Supplier Accounts functional area.
Users can map:
  • 1099 categories to spend categories and hierarchies.
  • A tax authority to 1099 federal or state withholding.
Set Up: Tax
 in the Common Financial Management functional area.
Users can set up company tax details for 1099 reporting.

Business Processes

Business Process
Considerations
1099 Adjustment
Users can adjust 1099 spend categories and opening balances.
1099 Electronic Filing Run Event
Users can generate electronic 1099 forms.

Reporting

Reports
Considerations
1099 Audit Report
View 1099 payees with invoice or payment activity who require additional tax information to display on the 1099 forms, such as:
  • A United States tax ID.
  • A tax-reporting or primary address.
1099 Payment Details
Review all payment transactions to 1099 payees, including payments:
  • Below 1099 thresholds.
  • In spend categories and spend category hierarchies that you haven't mapped to any IRS box.
  • With payment types that you exclude from 1099 reporting.
You can access the report from the
Create 1099 Payment Details
 task and the
Find 1099 Payment Details
 report. See Steps: Preview 1099 Payment Details.
We recommend that you don’t access the
Run
 or
Schedule
 tasks from the related actions menu of the
1099 Payment Details
 report, as this might return incomplete information.
You can't copy the
1099 Payment Details
 report.
Duplicate Supplier Taxpayer ID Number Report
Identify suppliers that might have duplicate taxpayer ID numbers.
Find 1099
View 1099 form details for the selected company and tax year.
Find 1099 Adjustments
View 1099 form adjustments for 1 or more companies, tax years, or payees.
Find 1099 Runs
View the 1099 runs that you've already generated for your selected companies and calendar years.
View 1099 Configuration
View the mapping of spend categories or spend category hierarchies and thresholds to 1099-MISC or 1099-NEC boxes for the selected year.

Integrations

Web Services
Considerations
Get 1099 MISCs
Retrieve data from a 1099-MISC or 1099-NEC run, optionally filtered by company.
Get Company 1099 MISC Data
Retrieve all the data from an entire 1099-MISC or 1099-NEC run, including summary information by payer.
Put 1042-S Income Code
Add or update 1042-S income codes as well as withholding spend categories or hierarchies.
Submit 1099 Adjustment
When you migrate to Workday midyear, you can use an EIB and create adjustments to load your initial 1099 balances.

Connections and Touchpoints

Features
Considerations
Cash
Workday uses the data from your ad hoc payments to suppliers, contingent workers, ad hoc payees, and investors to calculate your 1099 amounts.
Settlements
  • Workday only includes the amounts from paid or settled documents in your 1099 amounts.
  • When you use the payment acknowledgment feature, the payment acknowledgment must be in
    Accepted
     status from the financial institution.
  • Workday uses the data from miscellaneous payments to miscellaneous payees to calculate your 1099 amounts.
Supplier Accounts
Workday uses the data from supplier invoices and supplier invoice adjustments to suppliers and contingent workers to calculate your 1099 amounts.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.