Processing 1099 and T5018 Forms

Comsense Enterprise can help you streamline your 1099-NEC-01 and T5018 forms for IRS and CRA purposes.

Enterprise refers to these forms generically as Contract Payment Forms. The system populates the 1099-NEC-01 or T5018 report for those suppliers that are designated as 1099 suppliers, and where payments to that supplier exceed an amount you can specify.

Update to the 1099 Form

As of tax year 2020, the IRS has separated the 1099 form into two forms. The 1099-NEC-01 form reports independent contractor compensation and the 1099-MISC reports miscellaneous compensation such as rent or attorneys. For all independent contractors, Update the supplier from the 1099-MISC form to the 1099-NEC-01 form.

Configuration - Supplier

On the Supplier window, on the Profile tab you can identify the supplier as a 1099 supplier, add their Identifier, and select which box of the Contract Payment Form their amount should appear in.

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Updating the Supplier Configuration for the 1099-NEC-01 Form

If you have many suppliers that require the 1099-NEC-01, the quickest way to access those suppliers is to filter a list in the Supplier Management window and Update each supplier individually.

*Note: If an existing supplier requires the 1099-MISC form and the Supplier window already reflects that, do not update to the 1099-NEC-01 form.

Accessing Supplier Management

Enterprise > System Options > Supplier Management

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Filtering 1099 Suppliers

In the Supplier Management window, Scroll right and Check the 1099 Account checkbox on the filter line item. All 1099 account suppliers will display.

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Updating the Supplier Configuration

In the Supplier Management window:

  1. Click the Supplier Code
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In the Supplier window:

  1. Click the Profile tab
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In the Profile tab:

  1. Select 1099-NEC-01 from the Contract Payment Box drop-down list
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  1. Update the Identifier field (if necessary)
  2. Click Save & Close
  3. Repeat steps 1-5 for each 1099 supplier

Configuration - Report Management

In Report Management window you can specify defaults for the report, by division. Open Report Management at Reports > Report Management. In the treeview on the left portion of the window, locate the division you wish to work with, and select Type - ContractPaymentForm. This will open the settings for the report for this division on the right portion of the window.

Expand the options of the report by clicking the plus sign at the left side of the Contract Payment Form row. Ensure that the Visible and Print Dialog Visible options are checked on the Contract Payment Form row.

The list of parameters that appear when the row is expanded are optional parameters that can be configured here in the Report Management window as defaults, and when the parameter has the Visible option checked, it will also appear and be editable when printing the report.

For example, you may want to set a default Minimum Amount to $600. The user can override this amount when running the report if the parameter is set to visible. The Minimum Amount parameter is used to filter which suppliers will be included by default when running the Contract Payment report. 

Since this report is designed to print on the pre-printed government forms, alignment is important. The four page margin variables allow you to make adjustments to the alignment of the form. It is important that the sum of the top and bottom margins equal 0.5" and the sum of the left and right margins equal 0.5" when making adjustments to the margins. 

Report Management window.

Ensure that the appropriate security roles have access to the report. The roles can be seen at the bottom right corner of the window.

Running the Report

To run the report navigate to Reports > Reports and choose Contract Payment Form. 

The Generate Report dialog will appear and display Criteria at the top, with Parameters below.

Generate Report window.

Verify the Company and Year selected are correct.

The number of suppliers selected automatically will be displayed. This list can be viewed and modified by clicking the button that appears when you hover your pointer over the Selected count. Suppliers who have the 1099 box checked on their profile and have been paid an amount that exceeds the specified Minimum Amount are automatically included on the report.

Click Preview toolbar item to preview the report, and Print to print out the report. 


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