Setting Up 1099s for Multi-Entity Structures with Parent Company Roll-Up

Summary

If you have a multi-entity environment and have more than one parent entity, you will need to do the following setup to issue 1099s.  A parent entity for this purpose is defined as the 1099 payor entity (the entity where 1099s will be reported from).  For example, you have Whitehouse Construction and ABC Construction as parent 1099 payor entities (a legal entity) and the following as entities (separate legal entities) that will report under the parent 1099 payor entities:

1. Whitehouse Construction
   
1. Timberline General Construction
   
2. Timberline Development

1. ABC Construction
   
1. Sage Remodeling
   
2. Sage Development
   

 

And if you want to issue only two sets of 1099s (one set for Whitehouse Construction, Timberline General Construction, and Timberline Development, and a second set for ABC Construction, Sage Remodeling and Sage Development) you will need to do the following steps:

1. Create individual 1099s for each entity under the main parent company that pays 1099s: 

To enable the "Entity/Entity Group" filter on the 1099 form screen, the company must be configured to issue a separate 1099 per entity. 

Follow these steps to enable the option to print separate 1099 forms for each entity:

1. Go to Company from the top navigation bar
   
2. Select the Admin tab
   
3. Click Subscriptions from the menu
   
4. Locate Multi-Entity Console within the list
   
5. Select Configure from the prompt
   
6. Locate the section: 1099
   
7. Check the box: Issue a separate 1099 per entity
   
8. Click Save when complete
   

When you go to the 1099 forms page, the option to select an entity or entity group will become available: 

2. Set up the entity groups:

1. Go to Reports from the top navigation bar
   
2. Under Set Up, click Dimension Groups
   
3. Click + next to the Location
   
4. Give appropriate Location Group ID
   
5. Name the group.
   
6. For the field, select Group Type
   
7. Select Specific Members
   
8. Add the Entities from the drop-down for Members
   
9. Save

3.  Export 1099s at the top-level:

4. Pick entity group (Whitehouse Construction, for example) and the related form:

5. Update the payer details to match the issuing entity's information in columns S, T, U, V, etc., and then import this data into your third-party 1099 processing software:

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