1099 Withholding Tax

Malcolm_Clarke

Hi,

I have a client that deals with Vendors subject to 1099, but they actually withhold tax.

Vendors are set as MISC-01, and if I look at the form to print there is a space for withholding tax, but when you print the form from NAV it does not pick up the withheld tax portion.

Any idea how one does this?? If I look at the form, there is no space for any other code exept MISC, so I am a little lost on this.

Thanks

ara3n

It's MISC-04 Federal income tax withheld.
And MISC-16 State income tax withheld.

I'm guessing you have to create a credit

Malcolm_Clarke

I know that those codes are the withheld tax codes, but my question is if the Vendor is MISC-01, because he is a rental Vendor, and we withhold tax, how does NAV calculate the withhold portion to show on the report?

I cannot change my vendor to Misc-16, because that is not what group he falls under.

Law states, if you do not supply correct tax info then you have to withhold tax, but he is a MISC-01 Vendor. I don't see how it calcualates this without me modifying the report.

Thanks for your help anyway...

ara3n

you change the codes on the order/credit memo. or at vendor ledger.

Murray9046

Enter an invoice for the Invoice and let the 1099 Code default into the header as MISC-7 for the full amount. You cannot mix a document into two 1099 codes so you also need to enter a credit memo only on the header of that you specify the MISC-16 or whatever other box you need it to go into on the 1099. then when you cut them a check you can see the Invoice and the Credit memo in the detail so the vendor can see what you did in taking the tax. The 1099 report comes out fine!