USAS USAS 2011 Calendar 2011 Calendar

Year End Year End Closing Closing

ProceduresProcedures

Overview

Calendar Year-End Closing Review

TR1099Creating/Submitting Test and Final

Submission File

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Resources

Generic closing procedure available on SSDT website at:

http://ssdt.oecn.k12.oh.us/content/usas-closing-procedures

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VENSSN – Verify 1099 DataCheck Data for 1099 Vendors

VENSSN Option 4 or 6Review carefully!

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VENSSN - Verify 1099 VendorsCheck that all vendors that should

be are flaggedVENSSN Option 5Review list for any vendors that should

get 1099

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Vendor Names

If the vendor uses a different name for 1099 reporting, the district may enter the 1099 reportable name on the “2nd Name” field.

Enter the digits 1099: followed by the IRS-1099 name.

The F1099 program will strip off the “1099:” and use the name following it as the primary name on the 1099 reporting form and submission file

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To display the individual’s name on the 1099 but keep the business name as the first name on the PO, you can enter 1099:individual’s name on the 2nd name field of the vendor record.

1099 will display:

KARA JONES123 MAIN STREETSAMPLEVILLE, OH 55555

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Legislative Change Affecting 2011 Instructions for Form 1099-MISC 24-May-2011

Section 3 of Public Law 112-9 repealed section 6041(h) of the Internal Revenue Code, which would have required the reporting on Form 1099-MISC of rental property expense payments made after December 31, 2010.

Therefore, in the 2011 Instructions for Form 1099-MISC, please disregard:Treatment of rental property expense payments

under What's New on page 1,The second paragraph under Trade or business

reporting only on page 1, andRental property expense payments on page 3.9

Month-End Closing

Proceed with closing out for the month of December as normalEnter all transactions for the current monthPerform Bank Reconciliation procedures from the

USAS User Guide “USAS Useful Procedures” chapterExamine recommended reports to ensure you are

in balanceUSAEMSEDT – Cash Reconciliation – Option 1PODETLBALCHK

MTD, FTD, YTD expended amounts are identicalMTD, FTD, YTD received amounts are identicalOutstanding encumbered amount agrees with

outstanding PODETL encumbered amount. If they don’t, run FIXENC.

Run FINSUMM selecting “Y” to generate FINDET at the same time. The current fund balances should be identical on each report.

Run SM2CALC option (if tracking SM12 figures). Print off and check the resulting report.

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Month-End Closing

Run MONTHLYCD/Generate December’s reportsMinimum month-end reports recommended:

BUDSUM, APPSUM, REVSUMDETAILED PODETL – ALL FUNDSFINDET & FINSUMMRECLEDDETAILED CHEKPYCASH RECONCILIATION FROM OPTION 1 OF USAEMSEDT

Generate any additional Calendar Year-End reports desired

Create a copy of the files

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VENHIRE/VHRESETRun VENHIRE/VHRESET

Resets all vendors flagged as “Reported” to “Reportable”

Vendor will be reported again the next year if they are paid at least $2,500.

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Month-End ADJUST

Run ADJUST and select “month-end”You must NOT be running any other

programs during this process.

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Calendar Year-End ClosingRun the program F1099 which creates

1099s for the current calendar year

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2011

Calendar Year-End ClosingUpon completion, the F1099 generates the

following:F1099.TXT – report of 1099 vendors sorted

by miscellaneous income typeF1099.DAT – file containing the 1099 data

that is to be used with laser-generated formsF1099.FRM – file containing vendor 1099

information to be printed on blank pin-fed 1099 forms

F1099.TAP – tape file containing the vendor 1099 information to be sent to the IRS

Print and check F1099.TXT report carefullyNotify ITC that forms are ready to be printed and

data submitted to IRS

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Calendar Year-End ClosingRun ADJUST again from your NORMAL

accountSelect “Year-End” and run for

“Calendar”You must NOT be running any other

programs from your normal account during this process

May begin processing for January

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NWOCA 1099 ProceduresAfter NWOCA receives email that the

district has completed the F1099 program, we check to see that the F1099 files were created properly during the district’s F1099 run.

We rename the files to a different extension in order to save them for later use.

We take the F1099.DAT file and use it with the EDGE software to generate 1099 forms to print on self-sealing 1099-MISC laser forms.

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NWOCA 1099 ProceduresAfter the 1099s are printed and the district

copy of the 1099 is made, we run the 1099s through an envelope sealer to seal the 1099s.

Each district will receive the following: Copies of each 1099 (vendor copy and

district copy) The F1099.TXT reportInstructions on how to distribute the 1099s

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Creating and Transmitting the 1099 data to IRS

TR1099 Program

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1099 Reporting Requirements250 or more 1099-MISC forms must be

reported on magnetic media or electronicallyFirst time transmitters must send in 4419

Form before submitting 1099’s on magnetic media or electronicallyTransmitter Control Code will be assigned by IRS

A test file is required before 1st submission under the Combined Federal/State reporting programHighly recommended but not required in future

yearsThe IRS form 1096 transmittal form is NOT

required for magnetic/electronic reporting

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Creating the Test FileMust create test file to get approval for

Combined Federal/State Filing program (Recommended but not mandatory if you

submitted a test file for this last year)Follow the normal TR1099 and submission

instructions except:May include one or more district F1099 files Must be at least 11 vendors (“B” records) per

districtIn TR1099, MUST enter “Test” for Type of FileSubmit via FIRE system

Will receive an approval letter from IRS – must receive this approval before submitting actual file with state records21

Creating the Transmittal File Refer to TR1099 chapter in USAS System

Manager Manual

1. Append district files into a single file Various formats of the append command

may be useful for this, one example is:

APPEND disk1:[*]F1099.TAP,disk2:[*]F1099.TAP F1099.XXX/NEW

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Creating the Transmittal File2. Run TR1099 Program to add “T”

(Transmitter) and “F” (Final) records to file. You will need to enter:

Appended file name (i.e. F1099.XXX) Output file name Transmitter’s Taxpayer Identification Number

(TIN) Transmitter Name Company Name and Address for correspondence Contact Person name, phone #, email address for

problems with file or transmission Type of file

Original / Replacement / Correction / Test Transmitter Control Code received from IRS Approved for the Combined Federal/State Filing

Program (Y/N)? Prior Year? - Enter P if prior year data only!!!

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TR1099

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TR1099 Program Output TR1099.TXT

Summary report Recommend keeping on file at your site

Output file to submit

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Completing the Transmittal3. Print and check TR1099.TXT4. Submit file electronically

Use instructions found in Part B of IRS Publication 1220 for electronic filing of 1099 forms using their FIRE system

HTTP://fire.irs.gov connects you to FIRE System which is where you will upload your output file (created from TR1099) from your PC to their website

5. Be sure to keep a copy of the transmittal file and report for your records

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Questions?

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