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1099 Requirements and Preparation

Article ID: 203
Last updated: 16 Oct, 2016
Revision: 2
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RefTown offers the option of generating 1099's. This includes electronic distribution your officials as well as electronic filing with the IRS and most states.

1099 REQUIREMENTS

  1. Prepare your organization's account to be ready for 1099 generation.
  2. Prepare invoices on RefTown to show the accurate amounts that should be included on an official's 1099.
    • These invoices can
      • be generated within the RefTown system from game schedules
      • can include non-game related entries that can be input directly within RefTown
      • can include additional information imported from an Excel spreadsheet.
  3. Mark the invoice batches to indicate the correct Tax Year

1099 PREPARATION

  1. Go to Pay -> Officials 1099 Management
  2. If the configuration notice at the top of the page indicates your configruation is incomplete, provide the 
  3. Under Report of Official's 1099 Readiness, click on the appropriate year.
    • This will list all batches that are being included and where they are found
      • If the data is incomplete, find the missing batch (either in the live system or in an archive) and mark it with the appropriate Tax Year....you may wish to review invoice batches in your recent archives to be sure they have been marked with the appropriate tax year.
    • This will list each official that received payment in a batch marked as the selected tax year.
      • The officials will be divided into 3 groups.
        1. Officials making less than the minimum (typically $600)
        2. Officials making over $600 with all necessary information
        3. Officials making over $600 but missing some required information (SSN, Address, etc).
          • These will be listed at the top.
          • For any official missing information, obtain the necessary info and add it to the system.
  4. Once all officials have complete information, or you have obtained all information that you can, press the button labeled "Request Generation of 1099s"
    • Until we receive your request we will not process any 1099s.
      • You can pre-pay for the 1099 services with your annual subscription.

1099 GENERATION

Once your data is complete and we are notified, we will typcially generate your 1099s within 1 to 2 days. 

Once we have generated your 1099s, they will be posted to your account as follows:

  1. An individual PDF for each official.
  2. An All-in-one PDF file with all officials, 3 officials per page, for your records.
  3. An All-in-one PDF file with all officials, 1 official per page, that can be used for printing and distrubution to officials that can not download and open the form from RefTown.

Per IRS regulations, all PDF files are individually encrypted and password protected.  The password for an individual official's 1099 is the officials SSN (or TIN)...digits only, no dashes. The password for the All-in-one PDFs will be a randomly generated set of characters that will be provided directly to those that need access to those files.

1099 DISTRIBUTION

The system provides an email mechanism that notifies officials that they have a 1099 ready to be accessed.

Each official with a 1099 will need to do two things:

  1. Download their 1099
    • Log into RefTown
    • Go to Pay -> My Invoices & 1099s.
    • Click either "View" or "Download" for their current 1099
  2. Confirm Receipt
    • The IRS requires that the officials individually confirm that they were able to download their 1099 AND that they were able to open the 1099.
    • Reftown provides a mechanism where the official can confirm they were able to do these things.
      • They can also confirm reciept by email, or phone and an administrator can mark the offiial as confirmed.
    • If the official does NOT confirm receipt by some method, they will be considered to have not recieved a 1099 according to the IRS.

1099 FOLLOWUP

Periodically, it is recommended to send out reminders through Reftown to those who have not yet confirmed receipt. The system provides an email function on the 1099 managment page to do exactly that. It will only send the notice to those who have not yet confirmed receipt.

For those who have not confirmed near the end of Janurary, it is required by the IRS that you print and mail paper copies by January 31st. The All-in-one file with 1 official per page is designed for this purpose. When printing, you can either print the entire file or select specific pages to be printed.

Near the middle to end of March, we will electronically file all 1099s with the IRS and most state agencies, including: 

  • Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, South Carolina, Utah, Virginia and Wisconsin. 
  • We also support filling in Oregon through a seperate process.

We will provide a confirmation to you once we have filed your 1099s with the IRS.

Also read
item How to Create an Invoice
item Creating custom invoice items
item Using Custom Invoice Item Categories
item Preparing Your Organization, Invoices, and Officials for 1099 Processing

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Transferring Data from RefTown to Quickbooks       Using Custom Invoice Item Categories


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