Enterprise 1099 Consultants Set up (17R1)

1099 Consultant Employee Set up

Before a 1099 consultant can be Assigned to an Order their Employee record must be set up so that Enterprise overrides the Tax calculations and pulls information from their Vendor record instead. The first step is to set up a new Vendor record for the consultant. Creating and editing Vendor records is part of the Administration form as well as part of the Vendor form under All Options in the navigation tree. This form is accessed from the All Options expansion menu in the lower left of the Enterprise screen.

*Note - Only users that have been given access to Administration functionality will have this option available in the expansion menu to the left.

If users do not have access to the Administration functionality, use the Vendors option.

When the Administration form is selected the screen below is displayed with the navigation menu on the left. Select the Company form to set up new, or edit existing, Vendor records.

Current Vendors will be listed in a menu on the left side of the form. Enter the name of a Vendor into the Find a Company look up menu at the top of the list to filter out non-matching Vendors.

Click on a record from the list to display the information for that Vendor. At this point the user can make any changes to the Vendor as needed. To add a new Vendor, in this case a 1099 consultant, click on the button in the upper right of the screen.

Enter the Employee's social security number in the Fed Employer ID field. Then enter the Employee's Name and address information including State and Zip code. Clicking on the button (circled above) will copy the main address into the local and remittance address, and vice versa, which allows for you to not have to re-type the information if they are the same. It is imperative that the remittance address be completed so TempWorks know where to sends checks and 1099's at the end of the year.

*Note - The address information included in the remittance address area will be printed on the consultant Employee's Paycheck as well as their 1099 form at the end of the year.

The company ID number will be populated once you have entered the Fed Employer ID and Name. From the Company Type dropdown, for 1099 employees, select Vendor. For 1099 employees, be sure to check the box under miscellaneous options Generate 1099. This is what tells TempWorks at the end of the year to create a 1099. For 1099 employees, select "NA - Not Apply" from the Payment Terms drop down menu.

*Note - The consultant Employee will be paid based on the Pay Periods selected in the Order, not upon the Payment Terms selected in the Vendor record.

When the consultant Employee's Vendor record is complete it should look similar to the one displayed above. Once the Vendor record is set up, navigate to the consultant's Employee record (or create a new Employee record for them) and open the Details form.

*Note- Do not create a Psuedo Aident for 1099 Consultants

On the Employee Details form select the consultant's Vendor record from the Vendor drop down menu. This is the step that transforms this record from a taxable W2 Employee to a non-taxable 1099 consultant. The SSN field can be populated with the consultant's social security number, but it's not necessary to have the number documented on the Employee record if it's been added to the Vendor record.

*Note - The Vendor must be selected and saved to the consultant's Employee record prior to creating an Assignment for them on the Order. If the Vendor record is not attached the Assignment will be created as if this was a taxable W2 Employee.

Once the Vendor field has been populated with the correct, the icon circled above will be displayed in the avatar area noting that they are a vendor employee.

From the drop down menu on the Employee Actions Bar select View Vendor Record to navigate to the Vendor record associated with this consultant's Employee record. The rest of the Employee record can be populated with the information that will be needed to search on and place the consultant.

When the consultant Employee is placed on an assignment the Details screen for their Assignment should look similar to the one above. Most of the information on this form will be completed exactly as it would be for a W2 Employee. The difference is that in the Financial Details section the Company field will display the Vendor record associated with the consultant's Employee record and the W2 check box will not be checked.

Note: This information cannot be changed at the Assignment record level. That is why the consultant's Employee record must always have the Vendor selected in the Vendor field before the Assignment is created.

Note: If the Company and W2 fields on the consultant's Assignment record do not look similar to those shown above, change the Status to "Deleted/Mistakenly Entered" and duplicate the date used in the Start Date field into the Actual Date Ended field. Then update the consultant's Employee record with the Vendor information (as explained previously in this document) and re-assign them to the Order.

If you choose Vendors from All Options in the navigation tree, you will see the screen below which will list your current Vendors.

To add a new Vendor or 1099 Consultant, click the button in the upper right hand corner.

 

The vendor quick add form will appear. Fill in the Company Name with the employee's social security number. Fill in the Full Company Name with the employee's name.

It is important to choose "Vendor" from the Company Type List dropdown menu.

After filling out the employee's corporate address, click the symbol to copy it to the local address and the remittance address.

After these fields are filled out, click Save.

                                                       

Once the Vendor record is set up, navigate to the consultant's Employee record (or create a new Employee record for them) and open the Details form.

On the Employee Details form select the consultant's Vendor record from the Vendor drop down menu. This is the step that transforms this record from a taxable W2 Employee to a non-taxable 1099 consultant. The SSN field can be populated with the consultant's social security number, but it's not necessary to have the number documented on the Employee record if it's been added to the Vendor record.

*Note - The Vendor must be selected and saved to the consultant's Employee record prior to creating an Assignment for them on the Order. If the Vendor record is not attached the Assignment will be created as if this was a taxable W2 Employee.

Processing 1099 Consultant Payroll

Once the Assignment has been set up correctly, Payroll and Invoicing can be processed for these Transactions. The Time Entry and Proofing process for a 1099 consultant does not differ from that of W2 Employees. The hours, unit pay, salary, one-time adjustments, etc. will be added to the Time Entry spreadsheet. Once Time Entry is done, complete the Proofing process and fix any errors that need to be addressed, and then close the session. Once you have completed Proofing, you are now able to process payroll.

 Begin the Payroll process as you normally would by selecting the Payroll icon within Pay/Bill.

To start the payroll run, click on the following: 

Clicking on Start or Continue a Payroll Run from the Payroll options in the Payroll and Invoicing form will open the Payroll Wizard. Select Create a New Payroll Run.

Verify and change the Check Date, Bank Account, and Run Type.

The Check Date is the date that will print on all Paychecks in this run.

The Bank Account is the account that the funds will be withdrawn from for the 1099 consultant PayrollThe Run Type for 1099 consultant checks should be "SubPay".

                                  Once you have completed the Setup, click on Next in the bottom right of the Wizard.

The next step is to select the transactions you wish to process. View available Transactions by selecting Branch, Customer, Check Delivery or Session under the Groups section and then click in the box in front of the Transactions to be included in the run. Once Transactions are selected, click Next.

*Note - By choosing a Run Type in the previous form of "SubPay", Enterprise will only display Transactions that are set up correctly for this type of Payroll run.

 

Troubleshooting Tip: If the Time Entry and Proofing are complete and the Transaction is still not displaying, the Assignment or Vendor record may not be set up properly. Refer back to earlier in this document to verify that the records are correct. If not, make the appropriate changes and continue processing. If all record set up seems to be correct and the Transaction is still not pulling in then contact the TempWorks customer support group at 877-452-0327 or by sending an email to support@tempworks.com.

Verify that the correct Transactions have been selected and then click Next. Choose Back to return to the previous screen and select different TransactionsTo remove a Transaction from the run, right-click and select Remove Transaction or highlight the line and click on the button in the upper right.

When calculation is completed the Payroll Wizard will display the following message:

*Note - If any errors occur, refer to the appropriate Enterprise Back Office Training Manual for your version of Enterprise to ensure they are corrected accurately.

Click on the button in the upper right to view the Staged Checks report. 

Click Next to continue and view the PaychecksVerify that checks look correct and then click Next.

To view the check details right-click on the line for the Paycheck and select View Check or click on the button in the upper right. To remove a check from the run highlight the line and click the button or right-click and select Remove Check. Removing a check will simply put it back to the beginning of the payroll process by taking it out of this run. This is not deleting the transaction.

Enterprise will automatically pull the next available Check Number and place it in the Starting Check Number field. Verify that this number is accurate. Select the Check Sort, in which manner you want the checks to print in, and if desired, add a Stub Memo that will print on all Paychecks in the run. Then click Next.

*Note - If pre-printed check stock is being used you will need to verify that the Starting Check Number matches the first number on your check stock. Select Use EPay Check Numbers Only if this is a run that includes only ACH (direct deposit) Transactions and if you use pre-printed check stock.

Select the button to bring up the printer select prompt and print checks. Click the button if Paychecks are going to be printed remotely at another location.

Select the printer from the list and then click Print.

Once checks are done printing verify that there wasn't a paper jam and then match the first and last check numbers to the ones listed on this screen. If everything is correct, click on the button to post the Paychecks. Posting the run will close the Payroll Wizard. Payroll is now complete.

The screen shot below displays a sample of what a Paycheck should look like when the "SubPay" Payroll Run Type is selected. Notice that there are no Taxes listed.

*Note - There is no difference between Invoice processing for W2 Employee'sand 1099 consultants. For more information on Invoice processing refer to the Invoicing help document.

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