In this article, we’ll go over how to get started using Payable to file 1099s for recipients. We’ll break the process into 6 steps:

1. Understand your particular tax form obligation
2. Set your default tax forms settings in Payable
3. Gather all the recipient and payments data needed for generating complete 1099 forms
4. Import additional recipient and payments information into Payable
5. Have recipients choose their form delivery method
6. E-file and E-deliver or mail forms

1. Understand your particular form tax obligation

Before starting the 1099 form tax process in Payable’s dashboard, it’s important you know your company’s particular tax obligations to your recipients. There are several key questions you need to answer, for example:

• Do you plan on filing forms 1099-MISC or 1099-K?
• What state tax obligations do you have?
• Will you give recipients the options to choose e-delivery or opt for default mail delivery?

You should talk with a tax advisor if you have any questions regarding you 1099 obligations.

2. Set your default tax form settings in Payable

Now it’s time to sign into Payable and head to the (#1) “Taxes” page and click the button (#2) "Set Up Tax Forms."

From here, you’ll be guided through a series of steps to set the defaults for all of your forms. We’ve created an additional guide to walk you through this process: How to Set Your Company’s Tax Filing Information

3. Gather all the recipient and payments data needed for generating complete forms

If you used Payable for payments during the year, you may need to import additional data into Payable to supplement the transactions we already have on our platform. Here is a complete explanation of why and how to import your data into Payable. 

In order to successfully import this data, you must prepare CSV files according to the formats prescribed for each import 1099 tax form type. Once you’d prepared this, you’re ready to continue to the next step of importing your CSVs.

Payable's form generation engine takes care of summing and allocating the transactions, specifically gross transaction amounts.

What if I’m only filing a few 1099s — do I still need to prepare an import?

If you only have a few new recipients whom you will file 1099s for, then you can always manually input information into the forms’ fields. You will select this option after finishing the “set up tax forms” settings flow.

4. Import additional recipient and payments information into Payable

If you plan on importing additional data, then you’ll do that in this step after completing your tax default settings. Here’s a guide we made and sample CSVs to help you understand this step: Importing your Tax Forms into Payable.

5. Have recipients choose their delivery method

You can invite recipients to join in order to choose their preferred delivery method and also to confirm their tax identification information. For existing workers on Payable, they’ll see a banner when they sign in alerting them to add or verify their required tax information in their account settings.

In order to e-deliver forms, the IRS requires you to first let form recipients choose their desired method. After the forms are generated and all the recipients are in Payable, you can invite them to Payable to select their preferred delivery method, either e-delivery or mail delivery. If any recipients do not provide e-deliver, the IRS requires mail delivery.  See more information about the recipient tax onboarding process.

Remember! The deadline to deliver forms is January 31st. For mail delivery, you must initiate all mailings through Payable by January 24th in order to ensure forms are postmarked and mailed to recipients by the January 31st deadline. See 1099 tax deadlines for companies.

6. E-deliver, mail and E-file forms

Once you’ve completed your review and approval of the forms, it’s time to click on "E-deliver & E-file All" and "Mail & E-file All." Whenever you’re ready, hit the button on the taxes page to bulk e-file all forms or you can select forms to deliver and e-file individually.

We’ll provide confirmation within the app that forms have been successfully e-filed.

7. You’ve done it!

You’ve successfully used Payable to generate, deliver, and file 1099 forms. Until next year, friend!