NetSuite Changes Impacting your 1099-MISC Processing
NetSuite is deprecating the 1099-MISC form with the upgraded to 2018.2. As a result, Oracle strongly advises NetSuite users to find a 1099-MISC provider. Yearli by Greatland, Sovos, and Track1099 are all recommended by Oracle. Regardless of which provider you select, NetSuite provides customized saved searches to help you export 1099–MISC vendor payments to nearly any third-party provider.
Track1099 is a simple and cost-effective solution for smaller companies who do not have complex tax compliance requirements or companies who already have a sales/VAT tax solution provider and are looking for a provider only for 1099-MISC processing.
Forms supported by Track1099:
How does it work?
Track1099 supports 1099-MISC processing via upload with their pre-defined CSV Templates, here. First, export your 1099-MISC saved search from NetSuite, cut and paste it into Track1099’s form-specific template, and then import. Track1099 will walk you thru an error-checking process and allow you to select either paper or electronic filing methods.
What about security?
The IRS approves Track1099 to e-file 1099-series, 1042-S, Affordable Care Act, and by the Social Security Administration to e-file W-2 and W-2C. Their site uses 256-bit Secure Socket Layer (SSL) encryption, and they separately encrypt tax identification numbers within their database. They host their servers on Amazon’s Web Service, which are SOC2, ISO 9001 and SSAE16-compliant.
Track1099 uses Stripe for their credit card processing, which is PCI-compliant. In other words, they do not store your full credit card number on their servers.
How much does Track1099 cost?
One real benefit of Track1099 is that you can sign up for free and pay at the time of filing with any major credit card, allowing you to see if Track1099 works for you before purchasing, and there is no long-term commitment. The cost is based purely on the number of forms you need.
Who should use Track1099?
NetSuite users that don’t have a large number of 1099-MISC vendors will benefit from Track1099’s simplicity and low price point. The templates are easy to use, but your accounting team will have to export saved searches and manipulate the data in Excel. Don’t expect a fully automated solution or any integration. If you have 1099-MISC vendors in states that do not participate in the Combined Federal and State program, Track1099 is probably not for you. We recommend you check out the state limitations here, but by all means, sign up for a free account and see if it works for you!
Yearli is a complete federal, state, and recipient W-2, 1099 and 1095 filing program designed to help generate, file, print, and mail all related forms.
Forms supported by Yearli:
How does it work?
Yearli has made it easy to use NetSuite to file your 1099-MISC forms. All you need to do is create a Yearli account, import your data directly from NetSuite, review your data and checkout. It’s that easy. Yearli will file your forms to the IRS, applicable state agency and send copies to your recipients.
Follow this link for more details on the Yearli bundle and steps to process your forms.
What about security?
Yearli is SOC2 compliant but does not provide information around ISO 9001 or SSAE16 compliance on their website. Yearli’s electronic data is stored on secure servers behind firewalls, protected by ISP with up-to-date anti-virus and monitored with alerts to potential threats. Their systems are housed in a secure data center and monitored 24/7 by security cameras with monthly security scans.
While there is not a governing body that certifies that vendors are HIPAA compliant, Greatland has aligned with ISO 27002:2013. This set of standards maps to the HIPAA security rule.
Yearli does not list their available credit card processors, and neither Yearli or Greatland publish any information around PCI compliance on their sites.
How much does Yearli cost?
With three subscription options designed to fit your budget, Yearli can be cost-effective for all NetSuite users. Of these, either Core or Performance works with NetSuite. Abaci recommends using the Performance subscription to provide your accounting team with phone support, 1095 (ACA Forms), 1098 Forms and unlimited TIN matching. For a 15% discount on your annual Yearli subscription use the following link.
Who should use Yearli?
Yearli is an excellent solution for companies with a large number of 1099-MISC vendors across multiple states. The critical difference between Track1099 and Yearli is the availability to process 1099s in all 50 states.
Sovos offers a lot more than 1099-MISC processing, additional features include VAT & Fiscal Reporting, Sales and Use Tax, Tax Information Reporting, and eInvoicing compliance. NetSuite OneWorld users with tax nexus in other countries may find that Sovos is the best fit.
We haven’t listed all the forms provided by Sovos because they support all the forms listed for both Track1099 and Yearli, plus many, many more.
How does it work?
Like Yearli, you will need to install a NetSuite bundle to run the saved searches for 1099 vendor payments. Next, export, save and import the file to Sovos with no manual manipulation.
What about security?
As a global business, Sovos adheres to the EU-U.S. and the Swiss-U.S. Privacy Shield Frameworks. Sovos follow the Privacy Shield Principles published by the U.S. Department of Commerce.
Additionally, Sovos aims to satisfy the obligation of transparency under the EU General Data Protection Regulation 2016/679 (“GDPR”) and national laws implementing GDPR. Under the General Data Protection Regulation, Sovos is required to inform you if they transfer your information to countries outside the European Economic Area (“EEA”).
Sovos has put in place appropriate physical, electronic and managerial procedures to safeguard and secure the Information from loss, misuse, unauthorized access or disclosure, alteration or destruction.
How much does Sovos cost?
Sovos doesn’t provide pricing information on their site, and the price will vary depending on all the functionality needed, such as sales and VAT tax processing or eInvoicing. Follow this link to see a demo of Sovos and request a quote.
Who should use Sovos?
In summary, Sovos is a good option for international companies looking for tax processing and compliance beyond 1099s. This is particularly true for companies who require eInvoicing in Latin America or Europe.
What are your other options?
Track1099, Yearli, and Sovos are all excellent options for 1099-MISC processing. However, unless you have eInvoicing requirements we have found that a combination of Avalara for Sales Tax and VAT, in conjunction with Yearli for 1099 processing, is the most efficient and cost-effective combination.
Luckily, users can create saved searches in NetSuite to export data and import or manually enter the data into any 1099-MISC processor. Simply follow these steps!
To set up a vendor as 1099 eligible:
- First, go to Lists > Relationships > Vendors.
- Click Edit next to the vendor whose record you want to make eligible.
- NetSuite reports the total you paid to these vendors. The total includes payments made by paying existing bills or by writing checks.
- Next, on the vendor record, click the Financial
- Under Tax Information, check 1099 Eligible
- Finally, click Save.
To use the 1099 saved searches to report vendor payments:
- First, go to Customization > SuiteBundler > Search & Install Bundles
- In the Keywords field, enter 1099 Vendor Payment Report.
- Click the name of the bundle for your third-party provider and click Install.
- Next, click Install Bundle.
- After the saved search is installed, go to Reports > Saved Searches > 1099 Vendor Payment Report – Yearli > Edit.
- Edit the search according to your needs.
- Export the search to a CSV or Excel.
- Finally, open the CSV or Excel file and remove any instances of the word – None – and delete the last row that starts with the word Total.
If you have questions about which third-party providers will best meet your tax requirements, don’t hesitate to reach out to our team of accounting experts. We are always happy to help!