SMART Messages

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DATE November 29, 2012
Module AP
Subject IRS 1099 reporting for Petty Cash and Imprest Fund payments

If you use SMART petty cash/imprest fund functionality (as described in the paragraph below) IRS 1099 reporting is done for you. Otherwise you must submit IRS 1099 reportable payments using the procedures in Informational Circular 13-A-003. Non-SMART functionality uses one voucher payable to the petty cash/imprest fund to recognize the expenditure and reimburse the petty cash fund/imprest fund.

To use SMART functionality for IRS 1099 reporting for petty cash/imprest fund payments you must have two operator ids, and generate at least 2 vouchers:

  • Using the petty cash/imprest fund operator id you create a payment voucher using the vendor’s vendor id. This operator ID is purely for recording the expense, and 1099 reporting. No check is generated. It uses an origin code of MPX or PTX. An example of the entries in SMART are:

Debit account code 52xxxx using the vendor ID for the recipient. Keyed by the user.

Credit account code 220100 Accounts Payable. System generated.

Debit Account code 220100 Accounts payable. System generated.

Credit account code 1103XX Petty cash/imprest fund cash System generated

  • Using the normal operator id that generates a check or an ACH, create a voucher payable to the imprest fund to reimburse the petty cash fund/imprest fund.

Debit account code 1103XX petty cash/imprest fund. Keyed by the user.

Credit account code 220100 Accounts payable. System generated.

Debit account code 220100 accounts payable. System generated.

Credit account code 110100 Cash. System generated.

Resources for determining proper 1099 reporting:

Page 6 and 7 of the job aid “Create a 1099 Voucher” has Examples of payments by 1099 type and class: http://www.da.ks.gov/smart/Training/JobAid_Create_1099Voucher_Online_20100630.doc

PowerPoint review of setting up vendors for 1099 reporting and an account code guide: http://www.da.ks.gov/ar/forum/astra/mtg2011-05-1099s.ppt

IRS guide to each type of 1099, including the payments for each:

http://www.irs.gov/efile/article/0,,id=98114,00.html

SMART withholding codes:

http://www.da.ks.gov/smart/Training/JobAid_WithholdingCodes_20100720.ppt

 

 

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