1099 Audit Process and Review

1. Audit with Custom Silvertrek Report
2. Generic Audit

- This will be comparing the 1099 Report with the 1099 Processing Program

1. Audit How To with Silvertrek Custom Report

Accounts Payable> Reports> +AP Vendor Payment Drilldown 1099

Vendor Totals will be shown, you're able to drilldown into the lines.

This will not show totals below $600.00 and this will show if a transaction is subject to a 1099.

Audit Process:

1. Run for tax year 1/YY-12/YY
2. Check that the payment total matches what's in the AP 1099 Processing Grid
3. Not
   1. Paid by Credit Card
   2. Corporations or taxes as a corporation
   3. Any sort of government or municipal agency
   4. Employees being paid for reimbursements
   5. Paid for something other than a service (such as materials/supplies) 
4. The vendors left in the list, are vendors who should be receiving a 1099.
5. What is in the AP 1099 processing grid is the total for a vendor, not individual transactions.

2. Generic Audit

Phase One: W-9 & 1099 Audit - Do you see Vendors who need W-9's and do not?

Accounts Payable> Reports> AP Vendor Totals
Full Year

Select Preview

Review Paid Column

Some things to remove on Vendors

Some people and businesses don’t need a 1099. Here’s who is exempt:

1. Corporations – Except for attorneys or medical providers.
2. Small Payments – Less than $600 for services or $10 for royalties.
3. Personal Payments – Non-business payments (e.g., personal lawn care).
4. Nonprofits/Government – Tax-exempt organizations or agencies.
5. Employees – Use a W-2 instead.
6. Credit Card Payments – Reported by the payment processor (1099-K).
7. Foreign Entities – If they provide a W-8BEN or meet IRS rules.

Phase Two:
Open your AP 1099 Totals Report on Screen 1
Accounts Payable> Reports> AP 1099 Totals
Full Year
Select Preview

Review that all of these look correct

Open your AP 1099 Processing Program on Screen 2

Accounts Payable> Programs> AP 1099 Processing

• Filter Relevant Year
• Review totals using AP 1099 Totals Report and verify correct in AP 1099 Processing Program
• Go through anything under $600.00 and delete out those lines
  • You can highlight the row and use the trashcan icon to delete
• Review 1099's based by type. If you have multiple types, they will be separate filings

You're now ready to process!