EAP WTHD23: Box 4 Has Incorrect Amount of 0.00 for Withholding Supplier's Corrected 1099 Copy B (Doc ID 3025758.1)

Last updated on MAY 30, 2024

Applies to:

Symptoms

Original 1099-MISC Copy B for a Withholding Supplier that has money physically withheld has the correct amount printed in Box 4 (Federal income tax withheld). After the Withholding Sent File process was run, a manual Withholding Adjustment was created for the Withholding Supplier to add a positive amount to the Liability Amt field. Adding a positive amount to the Liability Amt should increase the amount in Box 4 once the 1099 Job is run again. However, once the 1099 Job was run, the Corrected 1099-MISC Copy B printed Box 4 as 0.00. This is incorrect since Box 4 should have printed the sum of the Original 1099-MISC Copy B amount plus the Liability Amt that was added through the Withholding Adjustment.

STEPS TO REPLICATE
1. Suppliers > Supplier Information > Add/Update > Add/Update >Supplier
    a. Display Supplier ID USA1099003
    b. Location > 1099 link
    c. Withholding Supplier Information page, un-check the Default Jurisdiction box for the row where Withholding Type = 1099
    d. Withholding Supplier Information page, add the following row under Withholding Information:
    - Withholding Entity = IRS
    - Withholding Type = 1099M
    - Withholding Jurisdiction = FED
    - Check the Default Jurisdiction box
    - Default Withholding Class = 02
    - Withhold Status = WTHD
2. Accounts Payable > Vouchers > Add/Update > Regular Entry
    a. Create a Voucher for Supplier ID USA1099003 with Invoice Date and Accounting Date = 12/01/2023
    b. Payments page, click the Express Payment link to pay the Supplier
    c. Express Payment page, pay the Supplier with Payment Detail Date = 12/01/2023
3. Voucher > Payments page shows Voucher now has 2 Payments
    a. Payment 1 is to the Supplier and has been paid
    b. Payment 2 is to the IRS and needs to be paid
    c. Click the Express Payment link to pay the IRS
    d. Express Payment page, pay the IRS with Payment Detail Date = 12/31/2023
4. Accounts Payable > Batch Processes > Payment > Payment Posting > Run Payment Posting to post both Payments
5. Suppliers > 1099/Global Withholding > Maintain > Post Withholdings > Run Post Withholdings
6. Suppliers > 1099/Global Withholding > Maintain > Adjust Withholding
    a. Display Supplier ID USA1099003, which has 2 lines
    b. 1st line for the Payment to the Supplier
    c. 2nd line for the Payment to the IRS
7. Suppliers > 1099/Global Withholding > 1099 Reports > Withhold 1099 Report Job
    a. Run the 1099 Job for Fiscal Year = 2023
    b. 1099-MISC Copy B for the Supplier has Box 4 populated with the correct amount
8. Suppliers > 1099/Global Withholding > 1099 Reports > Withholding Sent File > Run Withhold Sent
9. Suppliers > 1099/Global Withholding > Maintain > Adjust Withholding
10. Adjust Withholding page for Supplier ID USA1099003, add a manual Withholding Adjustment with Liability Amt = 1000.00
11. Run the 1099 Job
12. Corrected 1099-MISC Copy B for the Supplier has Box 4 populated as 0.00, which is incorrect

Changes

Cause

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