How Sunrise generates your 1099 export
Written by Success-Team
Updated over a week ago
1099 reports are available in the Sunrise Tax Assist. Navigate to More > Tax Assist, then look below the tax liability summary.
When you click on Generate 1099 Report in Sunrise here's what happens:
Sunrise reviews all your Vendors and selects those you paid $600 or more during the year you specified.
Next, we filter out vendors residing outside of the USA so all that remains are those within the United States and those whose address isn’t specified
Finally, we provide an alert on any vendor that does not have a Tax ID number, email address, or mailing address since these are required to file.
In short, the list you receive is all vendors you paid $600 or more in the USA or in an unknown country.
What’s the next step? Filtering out those who are (1) not a contractor or (2) not eligible to receive 1099’s.
Keep reading to determine who should be removed from this list.
Vendor vs Contractor: Contractors get a 1099, Vendors do not.
A contractor is a non-employee who has performed some service for the delivery of your product or service.
For instance, your graphic designer is a contractor. They created the menu, website, etc. for your business. Their input helped you deliver the product/service to market.
A vendor is a person who does your landscaping or washing the windows. While it looks nicer to have clean windows, it’s unlikely this work went into your product or delivery of your services, so there’s no need for them to get a 1099.
Once you have selected only contractors in the 1099 report, you need to then deselect the ones in Sunrise who you paid with Paypal or another online payment processing system. Rules for this are constantly changing and, if still in doubt, we suggest you contact the contractor to confirm if they require a 1099 from you.
For a detailed description of who a contractor is and who needs to get a 1099, visit this article:
So far, Sunrise has presented you with a list of eligible vendors. You've deselected the ones that do NOT need a 1099. Now you click Generate. Here's what you do next.
Open the CSV file to make sure the data entered is correct and the fields match up.
Chose a recommended 1099 filing service, we will suggest a few below.
File your 1099s by the January 31st IRS deadline to avoid paying penalties.
Sunrise recommended 1099 filling services
Note: we are not affiliated with these services in any way. Our bookkeepers use them and can stand by them.
Sunrise and Lendio do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal, or accounting advice. You should consult a tax, legal, and accounting professional before engaging in any transaction.