Designating a Vendor as 1099 Eligible
Each vendor must be designated as 1099 eligible in order to appear in the 1099 export file.
- Navigate to Manage > Vendor Management > Vendor Management, or Accounting > Payables > Vendors (Both areas take you to the same area within the site)
- Search for, then select the Vendor by clicking the row
- Select the Edit button
in the upper-right corner of the Vendor drawer
- Select "More details"
- Tax ID Number: Enter the Tax ID Number for the vendor
- Send 1099: Check this box to mark the vendor as eligible for 1099 reporting. When selected, the vendor will be considered for inclusion in the 1099 export file. Whether the vendor actually appears in the export will depend on the total dollar amount of payments made during the year and any minimum threshold you have set.
- Calculate: Select "For each HOA" to receive a 1099 for this vendor in each applicable association/HOA or "At Management Level" to receive one consolidated 1099. This designation determines whether the vendor will be included in the management company’s 1099 export or in the association’s 1099 export.
- Select the "Save" button
Note: The 1099 export will only include payments recorded in Smartwebs. Any payments made in a prior software must be generated separately.
Association Settings
Each association or entity must be configured individually with its own 1099 settings for each tax year.
- Navigate to Manage > Vendor Management > 1099's > 1099"s Settings
- Select where you will generate your 1099's from.
a. Export to Yearli: Upload your file directly to our partner, Yearli.
b. Export to Standard Format: Generate an Excel spreadsheet to upload to another 1099 processor. - Select "Save"
- Select "Add New Year & Form"
- Form Name: This field is no longer used in Smartwebs, so you may enter any text (previously, users entered “YYYYYYYYYYYY Form 1099-NEC”).
- Year: Select the applicable tax year
- Min Amount: Enter the minimum payment amount required for a vendor to be included in the export (e.g., $600.00).
- Choose Files to Upload: Although forms are no longer used in Smartwebs, a placeholder PDF must still be uploaded. Select any PDF to complete this step.
- Select "Save"
- Close the drawer. This form creator is not in use.
- You will now see the setup listed and available for future edits if needed.
Exporting Your 1099 Information
Summary and Best Practices
Following these steps ensures that your vendor and association 1099 information is accurate, compliant, and ready for submission. Before completing your exports, review the following best practices:
- Verify Vendor Information:
- Confirm that all vendor records include a valid Tax ID Number and correct mailing address.
- Ensure the Send 1099 checkbox is selected for all eligible vendors.
- Check Payment Data:
- Review all vendor payments in Smartwebs to confirm they are accurately recorded.
- Remember: Only payments made within Smartwebs are included in the 1099 export. Any payments made in previous software systems must be processed separately.
- Validate Association Settings:
- Confirm that each association or entity is configured for the correct Tax Year.
- Double-check the Minimum Amount threshold (e.g., $600) to ensure all applicable vendors are captured.
- Export with Care:
- Preview your export before sending to verify totals and vendor inclusion.
- Use the Email, Download, or Post options to securely distribute your export file.
- If uploading to Yearli, confirm that your Yearli credentials are current and that the correct tax year is selected before submission.
- Maintain Documentation:
- Save a copy of all exported 1099 files in your Association Documents folder for future reference.
- Retain confirmation emails or upload receipts from Yearli as part of your annual tax documentation.
Tip: Completing your 1099 setup and exports early allows time to verify data and resolve any discrepancies before filing deadlines.
End of User Guide