Actions Available from January 8th for Tax Year 2023 in Wingspan

Beginning on January 8th, the following actions for tax year 2023 will become accessible:

• Bulk Import of Off-platform Payments: Import payment records for recipients who were paid outside of Wingspan. (Administrators only)
• Calculation of 1099 Amounts and Statuses: Determine the 1099 amount and status for each recipient eligible for a 1099 form. (Administrators only)
• Editing Recipient Information: Update recipient details, their status, and the amount of non-employee compensation.

Generating 1099 Amounts & Statuses

Once all 1099 recipients and their off-platform payments are imported into Wingspan, administrators can proceed to calculate the 1099 amounts and statuses.

Pre-requisites

Before generating 1099 amounts and statuses, ensure the following:

• Calculation Settings: Your calculation settings must be properly configured.
• Off-platform Recipients: All recipients who are expected to receive a 1099 must be uploaded to Wingspan.
• Off-platform Payments: Upload all payments made to recipients outside of Wingspan for accurate calculation.
• Review Status Documentation: Familiarize yourself with the 1099 Status to understand Wingspan's status mechanism.
• Recipient Information Documentation: Understand the criteria for determining recipient 1099 status in Wingspan through this documentation.
• Administrator Privileges: Remember, only administrators are authorized to generate 1099 statuses and amounts.

Procedure to Generate

To generate 1099 amounts and statuses:

1. Navigate to Actions > Generate amounts & status.
2. Allow 3-5 minutes for Wingspan to calculate and determine eligibility for each recipient.
3. Upon completion, your dashboard will display a list of recipients, including their 1099 status and amount. Full details of each 1099 recipient will be accessible.

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Caution: Regenerating amounts & statuses will override manual edits.

You can generate 1099 amounts and statuses multiple times, but be aware that this will overwrite any manual adjustments made to 1099 statuses or amounts. Manual updates to recipient information will not be overwritten. Confirm your intention to overwrite these details before re-running the generation.

Understanding the 1099 Details Page

Filing Statuses

Each filing status on the 1099 form represents a specific stage in the submission process:

1. Needs Action: Indicates missing or mismatched criteria that the payer must address. A 1099 form shifts to this status if any "Needs Action Criteria" is unmet.
2. Ready: Signifies that all "Eligibility Criteria" are met, and the form is prepared for submission.
3. Submitted: The form has been sent to the IRS but has not yet been accepted.
4. Accepted: The IRS has received and accepted the form or its correction.
5. Rejected: The IRS has rejected the 1099 submission.
6. Excluded: The form is not filed due to specific reasons outlined in the "Eligibility Criteria."

For more details on Filing Status, refer to the detailed documentation.

Sync Status

The sync status in the 1099 detail view indicates the current state of a 1099 form regarding automatic updates and manual edits:

• Automatic: This status indicates that your 1099 form remains unmodified by you or your team. This encompasses no alterations in amounts, recipient details, or manual updates to its status. In this 'Synced' state, the 1099 form dynamically updates itself based on any changes in the underlying data before it's sent to the IRS. This update process is governed by the Recipient Information Determination Logic. As an example, should a recipient revise their tax details before you file, the 1099 will automatically incorporate these changes.
• Overwritten: This status appears if you or your team has made any manual adjustments to the amount, recipient information, or status of a 1099 form. These changes could include manual edits to the 1099 details or overrides of the automatically generated information. It's important to note that once a 1099 form is marked as 'Overwritten,' it will no longer automatically update based on changes in underlying data. This is to preserve the integrity of the manual edits made.

For guidance on how to update tax forms, including reverting payer edits, refer to Updating Tax Forms.

Recipient Confirmation Status

This status helps understand the recipient's position regarding their tax information confirmation for tax year 2023:

• Not Eligible for Invite: No invite will be sent as the recipient hasn't received any payment in 2023.
• Invite Queued: An invite is ready to be sent for tax information confirmation.
• Invite Sent: An invitation has been sent for tax information confirmation.
• Signed-up: The recipient has registered on Wingspan.
• W-9 Shared: The recipient has provided their W-9 information.

Grouped Forms

Following IRS regulations, Wingspan calculates the filing eligibility of forms with the same Tax Identification Number (TIN) based on their combined total. Even if an individual form is below the IRS threshold, it may still require filing if the aggregate total exceeds the threshold.

Wingspan files each form separately, even if they share a TIN. If an account is grouped, it will be indicated on the Dashboard as shown below:

History

Wingspan simplifies tracking changes made to your 1099 forms. This feature provides a comprehensive history of all events related to your 1099s, facilitating better understanding and collaboration.

Payments

The payments tab presents a detailed compilation of all transactions factored into the Non-Employee Compensation Amount. The tab is organized into three line items for ease of review and reconciliation:

1. Off-Platform Payments: This section itemizes payments made outside of the Wingspan system, each marked with the specific date of the transaction.

2. Adjustments by Team Members: Here, any manual adjustments to the compensation amounts made by team members are recorded, showcasing the name of the individual who made the adjustment and the exact amount modified.

3. Processed Payments via Wingspan: All payments that have been processed through the Wingspan platform are listed.

For analytical and reporting purposes, a CSV file encompassing all payment details can be downloaded as well.