Banner Finance Plain and Simple – Preparing for 1099s
created in Banner Finance
Do you struggle with 1099s in December and January? Are you concerned about receiving notices from the IRS regarding your 1099 submission? We all try to be proactive with obtaining the appropriate vendor information in a timely fashion and have many vendors in various stages of providing that information to manage. For some of us though, no matter what we do, we still seem to scurry during December and January ensuring everything is accurate. With the Banner Finance 8.8.0.8 patch and release 8.9, you now have functionality on FTMVEND to record a tax form status and a tax status date to help you better manage the data collection process. This functionality and a few changes to procedure may help you be better equipped for the 1099 preparation process.
FTMVEND
Two new fields have been added to FTMVEND – Tax Form Status and Status Date. You can record the current status for collection of tax forms in the Tax Form Status and enter the status date in the Status Date field. The Banner Finance 8.9 release creates a status code for U.S. customers’ IRS Form W-9 being on file and you have the option of creating additional Tax Form Status codes in FTMSDAT.
One key thing to remember is to enter the Status Date after a Tax Form Status is updated. For example, if the vendor has a Tax Form Status of “W-9 Requested” and you’ve now received the requested form, you should change the Tax Form Status to “W-9 On File” and then enter the new Status Date. If not, the status date will not be updated.
Possible Changes to Procedures
Some schools choose to request the W-9 at the beginning of the requisition process. As soon as it is determined that the vendor is not a current vendor, the W-9 is requested and the FTMVEND record is created with a Tax Form Status of “W-9 Requested.” Upon receipt of the W-9, the tax form status is changed to reflect its receipt and the status date is also re-entered. Receiving the W-9 early in the process allows you to validate the TIN/SSN as well as the legal name so the 1099 is accurate.
Another decision made by some institutions is to create a vendor record for every vendor rather than using the Check Vendor field for one-time vendors. This prevents issues with a “one-time vendor” actually needing a 1099 because they’re not truly one-time vendors and have met the requirement for 1099 reporting.
Finally, the owner ID field on FTMVEND is an easy way to handle “doing business as” (DBA) vendors. If a vendor operates multiple businesses under the heading “Doing Business As,” create the legal name of the vendor (owner vendor) as the 1099 vendor. When the DBA vendor is created, enter the owner vendor’s ID number in the Owner ID field on FTMVEND. Now, the owner vendor’s name and tax ID will be referenced on the vendor records and 1099s of the associated DBA vendors.
For more information:
- Banner Finance 8.9 User Guide: Creating a Vendor: Additional Information Window (page 2-275)
- Banner Finance Release Guide 8.9: FTMVEND Tax Form Status (page 44)