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PeopleSoft 1099 reporting solutions
 

PeopleSoft 1099 reporting solutions

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This webinar covers the required changes impacting 1099 reporting within PeopleSoft Financials as well as enhancements to streamline 1099 Procurement-Card Reporting. For PeopleSoft 8.4: information on ...

This webinar covers the required changes impacting 1099 reporting within PeopleSoft Financials as well as enhancements to streamline 1099 Procurement-Card Reporting. For PeopleSoft 8.4: information on a service offering to make the 2009 mandated changes is provided. For all releases: an enhancement automating 1099 reporting for Procurement Cards is presented.

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  • Deleted these 2 bullets for now:Rollback CapabilityChange Impact Reports
  • Deleted these 2 bullets for now:Rollback CapabilityChange Impact Reports
  • You need to have vendors in order to create 1099’s with the delivered process.
  • Procurement card transactions are credit card payments presented at the time of purchase of goods. They do not require PeopleSoft Vendors or Vouchers because the payment to the vendor has already been made by the P-card provider. Each month the P-card provider sends you a bill for what is owed. If you use PeopleSoft delivered processing, there will be one or more Vouchers created each month payable to the Credit Card company (i.e. JP Morgan, Chase etc.). The Vouchers are not made out to the Vendor that actually did the service so there is no way for PeopleSoft delivered processing to create 1099’s for the Vendor that actually did the service. You are, however, required to send 1099’s to the Vendor that actually did the service.
  • Procurement card transactions are credit card payments presented at the time of purchase of goods. They do not require PeopleSoft Vendors or Vouchers because the payment to the vendor has already been made by the P-card provider. Each month the P-card provider sends you a bill for what is owed. If you use PeopleSoft delivered processing, there will be one or more Vouchers created each month payable to the Credit Card company (i.e. JP Morgan, Chase etc.). The Vouchers are not made out to the Vendor that actually did the service so there is no way for PeopleSoft delivered processing to create 1099’s for the Vendor that actually did the service. You are, however, required to send 1099’s to the Vendor that actually did the service.
  • This is where Smart P-Card processing comes in. The IRS has published a list of MCC (Merchant Category Codes) that it considers to be 1099 applicable. You are required to report all transactions that have the 1099 associated MCC’s. All banks can provide a list of transactions by MCC. These files will be loaded into PeopleSoft by the Smart Loader. Next we have a setup page that has the MCC’s listed along with their 1099 applicability. The Smart Transformation process will take the raw data, create ‘shadow’ 1099 vendors and insert 1099 totals into the delivered PeopleSoft withholding records.We will discuss each of these processes in more detail in the next set of slides.
  • Here is a reiteration of the previous slide, in words.
  • This is part of a file from JP Morgan that has a payment summary of all payments. As you can see there is an MCC code associated with all of the Merchants. There is also enough information to create 1099’s. JP Morgan has also provided the Incorporation status. You will have a chance to create 1099’s for only those type of businesses you want on the P-Card configuration page. Also included in this file is the Federal Tax ID number and address of the Merchant.
  • This is part of a file from JP Morgan that has a payment summary of all payments. As you can see there is an MCC code associated with all of the Merchants. There is also enough information to create 1099’s. JP Morgan has also provided the Incorporation status. You will have a chance to create 1099’s for only those type of businesses you want on the P-Card configuration page. Also included in this file is the Federal Tax ID number and address of the Merchant.
  • We have provided a couple of Setup pages that control how the data you just loaded will be transformed in PeopleSoft.Smart Pcard does not create standard PeopleSoft vendors. Creating vendors for Procurement Card transactions could potentially make the Vendor file increase greatly so Smart Pcard creates what we refer to as ‘Shadow’ 1099 Vendors. These Vendors will not be stored in the delivered Vendor records but will be kept in bolt on records that will store just what’s needed to produce 1099’s. The Setid above will be used for the Shadow Vendors. The Prefix can be whatever you want and just helps you keep the ‘Shadow’ vendors separate from the standard Vendors. The Payment Sequence number is used to create a PYMNT_ID in the WTHD_TRXN_TBL during the transformation process. It should not be necessary to change this value going forward.Business Unit is the AP Business Unit you want the totals to be reflected in.The Las Sequence Number is used to keep track of the Shadow Vendor ID’s just like the NEXT function on the Standard Vendors. In this example Vendors WH00000001 through WH00000018 have been created. The NEXT ID will be WH00000019.ProCard User is completely optional and will only be used if you have PeopleSoft Procurement Cards installed and you wish to use the Loader to create users (Not part of the standard solution).Incorporation Status allows you to control what types of Vendors get setup as 1099 Shadow Vendors and subsequently get 1099 information inserted into the WTHD_TRXN_TBL. In the above example we are only going to create Shadow Vendors and 1099 information for Merchants listed as Individuals. This is completely up to your organization. Since different Pcard providers may have different Status’s this page is completely configurable for you to use.TIN Types can either be EIN (F) or SSN (S). You can set your default here based on the Incorporation Status but you will be able to change Shadow Vendors as needed later.
  • Next we are ready to map MCC’s to 1099 Applicability.Account is completely optional. Some of our clients have wanted the PeopleSoft delivered Pcard process modified to update the Account on Pcard transactions according to the MCC. For example if an MCC is Office Supplies, you want all transactions to inherit the account for Office Supplies. Delivered PeopleSoft allows you to only set the account default at the Pcard holder. So, if a user has a default account of Hardware, they have to remember to change it the Office Supplies during the reconciliation phase instead of letting the system automatically mark that payment from Office Depot to the account for Office Supplies. Again, this is totally optional.Next, the IRS has published a list of MCC’s that are considered 1099 applicable. We have provided these as checked for 1099 Reportable for you convenience. You can check or uncheck any MCC you wish. Next you will need to give these a default 1099 class. In the above example, if the MCC is 8351, the transaction will be given a 1099 class of 07. It is up to your organization to map these classes to the appropriate MCC.
  • The App Engine invoked from the above run control will do the following:Read the data from the staging recordsCreate new ‘Shadow’ Vendor and row in the WTHD_TRXN_TBL when:The MCC is marked as 1099 applicableThe Incorporation Status is checked in the setupThe TIN does not already exist in either the regular Vendor or Shadow Vendor recordIf the TIN already exists in the Vendor record a row will be written to the WTHD_TRXN_TBL with the total from the load.If the TIN already exists in the Shadow Vendor a row will be written to the WTHD_TRXN_TBL with the total from the load and the vendor name or address will be updated if it is different on the current file.As mentioned earlier, the Publish Date will become the Payment Date and the Withholding Declaration date on the WTHD_TRXN_TBL. Populating the WTHD_TRXN_TBL is key to the rest of the delivered 1099 process.
  • Shadow Vendors are Created. You can modify any information needed going forward. Only information needed for the 1099 process is stored.
  • This is the Delivered PeopleSoft 1099 Process Page.
  • Here is a reiteration of the previous slide, in words.

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