Some organizations and groups report their 1099s independently, with a separate Federal tax ID. Organizations, like community colleges, may report separately from their county. And groups, like the associated student body, may report separately from their district using their own fund. How do you handle that? How can some Federal reports use one tax Id (1099s and independent contracting) and others (payroll and W2s) use another? How can one fund (count it one, or maybe two) in an organization use a different tax Id than the rest of the funds?
Excellent questions! They couldn't have been better if I had made them up myself. :)
Escape Online has got you covered. We provide several options for defining the Federal and State Tax Ids for 1099 reporting.
1. If you fill out the Federal Tax Id for 1099 field in the Organization record, Escape Online will use that Id for 1099 reporting.
2. If you leave that field blank, Escape Online will use the 1099 Fed EIN in the fund component.
3. If that field is also blank, Escape Online will use the Federal Tax Id for Payroll Processing defined in the Organization record.
The logic also applies to the State Tax Id for 1099 field, also in the Organization record.
In a nutshell, if you have organizations or groups/funds that are independent and need to report their 1099 vendors separately, this is not a problem. So if this is the case for you, check your setup because 1099 processing season is about to open.