Payroll

Dale Alspach alspach at math.okstate.edu
Wed May 21 10:17:23 CDT 2003


In addition to payments to actual employees,
 in the U.S. a business must also report to the IRS and state
various payments to unincorporated entities, e.g., independent
contractors, on 1099's. Being able to generate the information and print
it on forms for the independent contractors and the IRS each January is
a real convenience.

The computation part is simple:
The vendor needs to be tagged as a candidate for a 1099 and his
EIN/SS number recorded. Some of these have thresholds, e.g., $600
for payments to an independent  contractor for services. At the
end of the year the software just needs to add up the payments
per vendor eligible;
check that it exceeds the reporting threshold; if so, print the
individual form in the required number of copies; add the amount
to the summary for the tax agency. 

I would not try to do the whole range of these, but concentrate
on the 1099 miscellaneous. Most of the others are for investment
and banking operations and not likely to be needed by a gnucash
user.

Dale Alspach


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