1099 TRAINING Presented by Ruth Collins and Jerri

1099 TRAINING Presented by: Ruth Collins and Jerri Crady, Accounts Payable Jessica Kirby and Lori Dench, Accounting Services November 30, 2018

What are W -9 s? • An IRS required tax form that aides in identifying the Tax Classification of Vendors for 1099 purposes What are 1099 s? • A tax report similar to a W-2 sent to certain business classifications that are paid at least $600 cumulatively in any calendar year Why do we need them? • AP must report all JCPS 1099 data to the IRS! Incorrect or incomplete vendor data increases our chances of an IRS audit and hefty fines for non-compliance. When you know better, do better. – Maya Angelou

W-9 Basics – Is it Correct? W-9 BASICS – IS IT CORRECT?

IS THIS A VALID W-9? This form has all required fields (1, 3, 5, 6, Part I with a signature and date) completed correctly. This is a valid form and can be processed through EPES or MUNIS as needed.

IS THIS A VALID W-9? Missing Field #3 – No Tax Classification Part 1 – Can’t put #s in both SS# and EIN fields Missing date on the signature line. This form is not valid and will need to be returned to the vendor for correction.

W-9 Basics – Is it a 1099 vendor? W-9 BASICS – IS IT A 1099?

IS THIS A 1099 VENDOR? This vendor is presenting an original work during an assembly. In # 3, they check S Corporation. This vendor is not a 1099 vendor.

IS THIS A 1099 VENDOR? This vendor is selling tshirts with school logo and team name imprinted on both sides. This vendor is a LLC – Partnership and as such, meets the Tax Classification criteria. This vendor is a 1099 vendor.

IS THIS A 1099 VENDOR? This vendor is selling cheer bows with school letters and mascot added to their basic bow. This vendor is an Individual LLC Tax Classification and as such meets the criteria for 1099. This vendor is a 1099 vendor.

IS THIS A 1099 VENDOR? This vendor is selling boxes to be used for a STEM Project This vendor has a Ccorp. Tax Classification and as such does not meet the 1099 criteria. This vendor is not a 1099 vendor.

AP REVIEW OF EPES DATA Non-1099 Report Review: Find actual 1099 vendors Review credit card payments* Correct any errors

AP REVIEW OF EPES DATA 1099 Report: • Remove any vendors not meeting W-9 classification Revised 1099 Report: • Enters all applicable detail into vendor records in MUNIS (Jan-Dec) Reconciliation: • Matches EPES 1099 data to MUNIS 1099 Report monthly

QUICK TIPS Submit New Vendor Forms and W-9 for new 1099 vendors before writing a check Include Details of the product and/or service received from the vendor (including Credit Card payments) Mark checks to employees correctly when the payment represents a reimbursement or refund

QUICK NOTE ON TRAVEL… Purchasing will accept PO’s for hotel/travel expenses Always provide the most accurate backup info! Check mailed to vendor or picked up by JCPS? For hotels, invoice must show tax charges Don’t delay sending in the information!

MUNIS VENDOR INQUIRY

EPES VENDOR SET-UP

17 -18 YEAR IN REVIEW

THE BIG REVEAL!

REDBOOK REBOOT PIPELINE