Adding or Updating an Employee 1099 Record

Use the Add/Update 1099 form to add or update an employee's 1099 record.

Note: Client Access Group Security is enabled on this form.

To add or update an employee 1099:

On the Work Centers panel, select Tax > 1099 Processing > 1099 Processes > Add/Update Employee 1099.

In the Add/Update Employee 1099 section, complete these fields as required.

Field	Description
Employer	The Employer ID for whom to generate 1099 data.
SBEA Entity	An optional field that is available only when Build W2s from Client Federal Tax Registers is checked in the Global Configuration form. This is a client federal entity who represents a client of your organization that is included in SBEA reporting.
Employee	The employee whose record is being added or updated. If a 1099 record is found for the specified employer ID and employee ID, the record is displayed so that you can make the necessary changes. If a 1099 record is not found for the specified employer ID and employee ID, the system prompts you to specify whether to add a 1099 record for that employee. Click Yes or No.
Tax Year	The tax year for which to generate 1099 data. Typically this is the year before the current year.
1099 Manually Updated	When the record is manually updated. The system selects this option when you make manual changes to the record.

In the Federal Form 1099 Misc section, add or change these fields as necessary.

Field	Description
Recipient's TIN	The recipient's tax ID number.
Recipient's Name	The recipient's name.
Employee Address	The employee's street address.
City, State & Zip	The employee's city, state, and zip code.
Non-employee Compensation	Whether the record was manually updated. The system selects this option when you make manual changes to the record.
Federal Income Tax Withheld	The amount of federal income tax withheld.
Federal Income Taxable	The amount of taxable federal income.
State Tax Withheld	The amount of state tax withheld.
State Income	The amount of state income.
State/Payer's State No.	The number for the state or payer.

Click Save and then Yes when prompted to continue. When the data is saved, the system writes these changes to the status change log and flags the 1099 as manually updated. See Viewing the 1099 Record Change Log

Click Delete to delete the record.

Note: From tax year 2024, for an employee who is a 1099 contractor and has federal or state income tax withheld by the employer, the employee 1099 Build process in PrismHR will include the following information apart from Non-Employee Compensation:

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Federal Income Tax Withheld

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Federal Income Taxable

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State Tax Withheld

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State Income Taxable