1099 Misc forms and State withholding

James Monroe

Active Member
We are on E1 9.0, tools

Our issue today is in regards to State Withholding processing on a 1099 Misc form. We issue about 2000 1099s at the end of the year to our Independent Contractors. This year we are working on a project for our Tax department where we will be required to perform State Withholding based on where the IC worked. Our Independent Contractors could work in any state or multiple states, and there are some states (4 I believe, and more coming) where we will be required to withhold funds from their payments based on a percentage and limits and the state where the work was performed.

Looks like we will have some challenges, among those

1. JDE currently has a calculate withholding process but requires that you set up a specific withholding percentage for the vendor. So there is no allowance in JDE for the withholding to be done only on some payments to a particular vendor based on state worked. Also, some of these states have limits where you only withhold above that limit. Oracle / JDE stated that they have no functionality to address these requirements so any solution would be custom on our end.
2. On the printing side of the 1099, we would have other custom changes also. There are places to put state tax withheld on the 1099 form, but the JDE program that prints 1099 MISC does not ever reference the State related fields like State Tax withheld. This would also be a custom change to withhold throughout the year based on the state's rules, and then print this info on the 1099. However, you can only reference two states. So our custom change would include tracking the withheld amounts and printing them on the 1099. If there are more than 2 states withheld, we would need to somehow break up the 1099 into multiple ones.

We are in the beginning of the requirements of this project but any thoughts or suggestions as to how this might be handled in JDE would be appreciated.