To jump directly to the step-by-step video tutorial, click here.
Important: When you file your 1099 electronically, your 1096 automatically gets filed electronically.
If you have not yet done so, you will need to create a Nelco account.
Filing Electronically
- Navigate to the Ledger and Payables module > Reports.
- Under Standard Reports, expand the Vendor option.
- Select from the two options for E-Filing: 1099-MISC E-file and 1099-NEC E-file.
- Configure the Report and transmit the 1099s.
There are two 1099 forms for Vendors. Review IRS Guidelines to determine what type of 1099 the Vendor needs.
- 1099 NEC for non-employee compensation.
- 1099 MISC
Important: For vendors to show up correctly on the tax forms, they must be set up before filing. For more information, please see the separate article: How to set up a vendor to show on the correct 1099 form (1099-NEC or 1099-Misc)
Printing the Tax Forms
- Navigate to Ledger & Payables > Reports > Vendors > 1096/1099-Misc. or 1096/1099-NEC:
- In the Configure Report screen, select the Calendar Year to align with your reporting needs.
- Under Vendors, select one, multiple, or all.
Important: The system will only include ALL vendors on the report when there is no selection made. To select multiple vendors, press and hold the CTRL (Windows) or CMD (Mac OS) while making the selections.
- In the Form Name section, select from the following options:
1099-MISC /1099-NEC 4-Up Blank Paper
1099-MISC 2-Up Preprinted/1099-NEC 3 Up Preprinted
1096 Preprinted
The blank paper option prints both the form and the data. The preprinted option prints the data, as it is already on the form.
Note: There is no blank paper option for 1096 forms. For these, you must use the preprinted IRS forms. Also, there is no electronic processing of 1096 forms.
Blank Paper Option
When you choose 1099 4-Up Blank Paper, you will get all four necessary forms:
- Copy 2
- Copy B - For Recipient
- Copy 1 - For State
- Copy C - For Payer
Important: The 1099 Copy A must be purchased, just like the 1096, and you must use the preprinted option of the form you are printing from.
You must print the 4-up blank paper forms once for each Vendor. Although you still need to follow our protocol for proper alignment, using the blank paper option eliminates the minuscule alignment issues that may present themselves to specific printers.
Preprinted Form Option
When you choose the 1099-Misc 2-Up Preprinted or the 1099-Nec 3-up Preprinted option, you must use the forms provided by the government, and two/three vendors will print per page.
For each run, you must print the forms four times, sort them by Vendor, and then divide them in half before sending them out.
You must also follow the protocol for proper alignment to ensure the forms line up properly.
As mentioned above, there may be a few exceptions. If, after following our protocol, your forms are not in alignment, most customers have success when using a different printer.
Click the following link for information on the criteria for determining to whom you should send a 1099: Vendor 1099: Reporting Requirements.
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