Additional taxation information

The formula for calculating 1099 amounts is:

TOTAL = NET - [NON-TAXEARN] + [NON-TAXDEDS] - (A + C + E - H)

NET: the sum of amounts from top grid of Drill-Down window (accessed via Step 6 in the 1099 Wizard).

NON-TAXEARN: the sum of amounts from the bottom grid of the Drill-Down window (accessed via Step 6 in the 1099 Wizard).

NON-TAXDEDS: the sum of amounts in the middle grid of the Drill-Down window (accessed via Step 6 in the 1099 Wizard).

A, C, E, H: amounts in red in the middle grid of the Drill-Down window (accessed via Step 5 in the 1099 Wizard). Boxes B, D, F, G from the Wizard are disabled, unchecked and never used. Box H is disabled, checked, and always used if the 'Yes' radio option is selected in Step 5.

If an Employee has negative pay (deductions exceed pay), an 'OWE-' deduction is automatically created for next day after the Cut-off day (as selected in the Driver Statements program). If the employee’s next pay exceeds the included deductions, the 'OWE' deductions created will be stamped as paid; otherwise, another 'OWE-' will be created and amount from previous 'OWE-' will be carried into the new 'OWE-' deduction.

For the Payroll and Returns Generator, a "paid" record means there is a 'Check_ID' and TX_DATE' value in the CHECK_MSTR table. The 'PMT_STATE' value is used to select which deductions are queried. 'TX_DATE' is the actual Check Date (selected in the Driver Statements program) and is the date the IRS is looking for.

Here is how OWE deductions are created. In all the cases deductions exceed pay so 'OWE-' deductions are created. The following are four cases:

Case A:

Case B:

Case C:

Case D: