Manage Tax Reporting (30.6)

1

Review 1099 Setup

The setup should be reviewed for: the calendar; Withholding Entities; Withholding Rules; Withholding Types; Withholding Codes; and set up or review of Report Control Information. The DFS AP 1099 Maintainer has access to the 1099 withholding-related configuration and validates the 1099 withholding setup.

2

Run Withholding Post

This step combines voucher and payment information to generate 1099 reportable data which is used to generate 1099 reports. All payments must be posted to be included. The applicability of tax withholding and reporting is identified in the supplier records via the Set Up and Maintain Supplier business process. State payments are marked as applicable for tax withholding or reporting through the supplier record configuration and/or the Account values recorded on the voucher in the Enter and Process Vouchers business process. Account values have a 1099 Reportable Attribute value.

Process Step ID Process Step Title Description of Process of Y (yes) or N (no), which indicates if the account value is 1099 reportable.

3

Perform Review of 1099 Items

After posting withholdings, there are various reports and on-screen inquiries available to review the reportable 1099 voucher and payment information. During the review, vouchers or suppliers may be identified that require marking for withholding. The 1099 Detail, the 1099 Mismatch, the Employee Suppliers, and the 1099 Updates reports are used to identify any updates that are required to the supplier records or voucher accounting.

4

Manage Updates

The DFS AP 1099 Processor or the DFS AP 1099 Maintainer can coordinate with an agency, as needed, for making 1099 corrections and adjustments.

5

Update Withholdings

The DFS AP 1099 Processor or the DFS AP 1099 Maintainer enters adjustments on the Withholding Transaction page. These users can also coordinate with the DFS AP Supplier Approver to update the supplier record for the 1099 withholding-related items, such as withholding applicability, withholding entity, type and class, jurisdiction and/or business designation. The DFS AP 1099 Maintainer updates 1099 Withholding-related configuration items, as necessary. Once the updates have been made, the DFS AP 1099 Processor reviews reports and inquiry screens to determine if any further adjustments or corrections need to be made.

6

Run Withhold 1099 Report Post

After all adjustments have been made, all items are reconciled to make sure there are no more corrections required. The Withhold 1099 Report Post step populates the Withholding 1099 table by extracting data from the Withhold Transaction table and inserting data into the Withholding Report tables.

7

Generate Withhold 1099 IRS Report

The DFS AP 1099 Processor selects the parameters to generate the 1099 IRS Report.

8

Outbound 1099 IRS (API008)

Florida PALM creates a file with the 1099 information for the IRS or other external users.

9

Generate/ Review 1099 to Send Detail Report

This delivered report is a replica of the data in the file prepared for the IRS. This report can be used to reconcile with the IRS file prior to printing the final report for the supplier. After the 1099 to Send Detail report has been generated, there is one final opportunity to make adjustments and corrections, as needed.

10

Create 1099 Copy B Report

After all final adjustments and corrections have been made, the 1099 Copy B Report is generated.

11

Review/Print/ Send 1099 to Suppliers

Generated 1099 forms are reviewed, printed, and mailed to the suppliers.

Process Step ID Process Step Title Description of Process The 1099 Summary report is available for review to verify all required 1099s have been printed and allows an opportunity to identify and print any 1099s that were missed.

12

Upload 1099 IRS File to the IRS

The DFS AP 1099 Processor uploads the file to the IRS site.

13

Finalize/ Update Records

The Withholding Sent File finalizes the 1099 reporting by marking the transactions as included in the reported 1099s.

14

Review 1099 Spreadsheet

The DFS AP 1099 Spreadsheet Upload Processor receives a 1099 spreadsheet outside of Florida PALM for review. The 1099 spreadsheet contains 1099 corrections, adjustments, beneficiary 1099s or backup withholding once backup withholding functionality is implemented in Florida PALM. If the spreadsheet does not contain the appropriate information for upload to Florida PALM, the DFS AP 1099 Spreadsheet Upload Processor works with the requester outside of Florida PALM to resolve the issues with the spreadsheet. For 1099 corrections submitted via spreadsheet upload, corrected 1099 forms will be generated in Florida PALM once the 1099 process is run again.

15

Inbound 1099 Spreadsheet Upload (API128)

The DFS AP 1099 Spreadsheet Upload Processor uses the Inbound 1099 Spreadsheet Upload to import the submitted and reviewed 1099 spreadsheet.

16

Perform Interface Error Checking

Edit validations are performed on each interface before the data is allowed to load to the Florida PALM tables. If the file is rejected, all transactions in the file are rejected and the file must be resubmitted once the issue is resolved. If the file is not rejected, edit validations are performed on each transaction before the data is allowed to load for processing in the AP module. Edit Validations include: · Business Unit Validation · Chartfield (Account) Validation · Withholding Entity Validation · Withholding Type Validation · Withholding Class Validation · Amount Validation · Supplier Validation Additional Interface exceptions may occur when the data is validated against specific interface edits. Examples include: duplicate data in the file, incorrect

Process Step ID Process Step Title Description of Process data, missing required fields, and inactive chartfields. Agencies will need to resend any transactions that error in a future interface.

17

Load Inbound 1099 Data

Florida PALM loads the 1099 data and runs the Withholding Post process. The uploaded 1099 data is ready to be reviewed in the next step of the 1099 process.

N/A

R1

APR036

1099 Detail Report – a report that provides 1099 payment details

Data Warehouse

Periodic

DFS

R2

APR046

1099 Mismatch Report – a report that lists suppliers without a valid business designation that have vouchers with 1099 reportable account values

Data Warehouse

Periodic

DFS

R3

APR047

Employee Suppliers Report – a listing of employees doing business with the State as a supplier

Data Warehouse

Periodic

DFS

R4

APR103

1099 Updates Report – a report that lists all 1099 adjustments and corrections and expenditure refund deposits with 1099 applicable account values

Data Warehouse

Periodic

DFS

R5

APR104

1099 Summary Report – a report of 1099s that have been generated

Data Warehouse

Periodic

DFS

API008

Outbound 1099 IRS – Outbound interface containing 1099 tax reporting information to the IRS

Annually, Periodic

Florida PALM

IRS

API128

Inbound 1099 Spreadsheet Upload – spreadsheet upload for enterprise users to make corrections for supplier payments and to load beneficiary 1099s

Periodic

Agencies, BOSP

Florida PALM

N/A

N/A

N/A

N/A

07/08/2024

Original Version