Exporting 1099 Information
The WP1099 plugin creates a CSV export file for all vendors and/or affiliates who have received payments that exceed the minimum threshold for the year.
In the case of Affiliate Commissions, that threshold is $600.
For royalty payments in multi-vendor marketplaces, that threshold is $10.
Generating the CSV Export File
- At the end of the year, visit the WP1099 settings page.
- Click WP1099 in the left menu
- Click the Settings tab at the top
Make sure that the year you want to export information for is selected in the Tax Year setting.
For example, if you are exporting payments in January 2018, you would want 2017 to be selected, since 2017 is the tax year you are exporting payments for.
Review your business information found on the settings page. This information will be included in the export file along with your vendors and affiliate's payout information.
- Click on the Payouts tab on the WP1099 screen.
On the payouts page, you will see sub-tabs for each compatible plugin that you have installed. On each sub-tab, there is a summary of each vendor and the total payouts made to them during the year.
Click the Export button at the top of the page, and you will be prompted to save the CSV file somewhere on your computer. Repeat this for each sub-tab that is visible.
You can open the CSV file in a spreadsheet editing program like Microsoft Excel, Apple Numbers, Open Office Calc, or Google Sheets. You can also use a plain text editor, however, it is not as easy to read the information in the file this way.
- If you have multiple compatible plugins installed, you may need to combine the data from the export files that were generated.
- For example, if "Joe Smith" is an affiliate in AffiliateWP, and also a vendor in EDD Commissions, it is possible that he will have a payout recorded in both export files. You would want to combine the amounts for Joe Smith into one record so he doesn't get two 1099-MISC forms from you. While it wouldn't technically be incorrect for him to receive two 1099-MISC forms from you, it could save you some administrative costs in preparing and sending two separate forms
- Fill in any additional information in the CSV export files.
Most web hosts will not allow sensitive personally identifiable information to be stored on their servers. This information includes things like social security numbers, and other taxpayer identification numbers. For this reason, we do not provide a setting to store this information in the plugin's settings and it will need to be entered manually into the export file.
- Your Business Taxpayer ID number: This is your business' taxpayer identification number, and should be the same number for all records in the export file. This is a 9 digit number provided to you by the IRS when you registered your business, and usually looks something like this: 12-3456789. If you are operating as a sole proprietor, you may need to use your social security number here instead.
- Your Vendor's Information: During the year you should have been requesting information from your vendors on the IRS form W9. The information contained on this form will include their name, possibly a business name, the type of entity they are (sole proprietor, LLC, corporation, etc.), their address, and their taxpayer identification number. The taxpayer identification number will either be their social security number or employer identification number depending on the type of entity that they are. You will need to fill this information in for each vendor or affiliate that is included in your export file.
- TIP: During the year as you get W9s from your vendors or affiliates, create a spreadsheet where you enter the information from their W9. You can then use built-in lookup functions in your spreadsheet program to populate the CSV file with the vendor's address, taxpayer ID number, etc.
- Additional Payments: If you happened to make additional payments to any of the individuals listed in the export file for payments that were not included in the affiliate or multi-vendor marketplace plugin, you will need to add those payments to the export.
- Example: You have an affiliate who earned $600 or more in commissions during the year, who you also hired to design your company's logo. You would need to add the amount you paid for the logo to the export file.
Submit 1099-MISC to IRS
You can submit the 1099-MISC information found in the CSV file to the IRS in one of the following ways.
- Do It Yourself: This option may be practical if you only have a handful of recipients. If you choose to e-file, you would need to purchase special software that will create the data in the proper format for the IRS to process. If you have fewer than 250 forms to file, you can also take the information from the export file and hand-write or type the 1099-MISC forms on your own. To do this you would need to order special paper forms from the IRS - you cannot download the forms from the IRS website.
Note: the WP1099 plugin does not generate the export file in the proper format for e-file purposes.
- Use a third party 1099 filing service: There are many 1099 filing services, which will allow you to upload your CSV file. The following is a list of several third-party services that you can use: Tax1099.com, 1099Online.com, Track1099.com. That list is for your convenience and should not be taken as an endorsement or recommendation. You can find many other similar services online.
The third-party services can handle many of the required tasks for you, including:
- Submitting to the IRS
- Submitting to state(s) if required
- Sending copies to your vendors or affiliates
- Some will even handle collecting, verifying, and storing W9 information. Verifying this information can help prevent costly IRS penalties.
- Send the CSV Export to an Accountant: This would likely be the best option as your accountant or CPA will be able to verify the information you are submitting is accurate before submitting. Your accountant will likely already have the special software required for generating the correct export file for you and will be aware of any filing deadlines so you don't file late. You may also be able to forward any W9 information to your accountant and they can "fill in the blanks" for you.