Checkr Pay makes it easy to file 1099-NECs for your earners. Anyone with Read & Write permissions to the tax tab on the customer dashboard will be able to generate, review, and file 1099s. You can also use a batch file to upload any off-platform earnings, and reach out to our customer support team to have all your generated 1099's filed at once. Please note that an earner has to be in an "active" status on the dashboard, and have received at least one payout through the Checkr Pay platform for our system to generate 1099s. Also, any earner whose total earnings (both with Checkr Pay and off-platform earnings) don't add up to $600 will not have a 1099 because that is the federal income tax minimum to file a 1099.
If any of your staff don't have access to the Taxes tab, any admin can grant those permissions in the User Management tab. See Adding internal users to the Checkr Pay dashboard for more information.
Procedure:
Navigate to the "Taxes" tab on the left-hand side of the dashboard. From here you can see all your earners, and use the drop-down menus to filter by the status of the 1099, and the tax year. Please note that the "Earnings" column will only show the amount an earner was issued on the Checkr Pay platform.
If you have earners who were issued payouts before being activated on the Checkr Pay platform, you have two options to add those earnings before filing the 1099s. You can upload the off-platform earnings for multiple earners at once using a Batch File. This is the recommended method because you can enter 0 for off-platform earnings and the batch will still generate the 1099 for that earner. The template and further information can be found in the Batch File Templates article.
You can also find each earner and click the "Generate 1099-NEC" button. This will open a window with a box to enter external earnings. After entering the earnings, the "Skip" button will change to "Submit". If the earner did not have any off-platform earnings, you can simply click "Skip" and the 1099 will be generated with the earnings we have on file.
Once the 1099s are all generated the inline buttons for your earners will change to "File 1099-NEC" and "View PDF", and the status will change to "Created". Please note that the "View PDF" button will show the exact 1099 that will be filed. This contains sensitive information and should be handled with extreme care to protect your earners against identity theft.
At this point, you are ready to file all the generated 1099s. You can do so by clicking the "File 1099-NEC" button, or by sending a request to our team at customersupport@checkrpay.com and we will bulk-file all the generated 1099s for you.
Once the 1099s are filed they will be sent electronically to the IRS and their status will change to "Filed". Their status will then asynchronously move to one of the following:
- Accepted - which means that the appropriate government entities have acknowledged receipt of the document. The 1099 will then be automatically emailed to the earner. We will also notify the earners via SMS, and an in-app banner that the 1099 has been emailed, and is available for download from the Checkr Pay wallet.
- Rejected - This can happen when the IRS detects a mismatch with the earner's SSN and name. You will receive an email alerting you to the error, and our team will also get an alert. If changes are needed regarding the earner's PII, reach out to us at customersupport@checkrpay.com.
If you find an error in the reported 1099's after filing them (status Accepted or Rejected) you can click the "Request Correction" button that has replaced the file 1099 button. This will give you the option to enter the corrected amount (this should be the total amount for the year, regardless of whether those were on or off-platform earnings). This will create a ticket to our support team who will make the correction and then notify you that the correction was made and filed with the IRS.
Statuses:
The following is a list of all the statuses on the taxes tab of the customer dashboard.
- Not started - the 1099 has not been generated, nor have any off-platform earnings been reported
- Created - the 1099 is generated and ready to be viewed or filed
- Filed - a brief status that will indicate the 1099 has been filed with the IRS and is waiting for their review. 1099's in this status are also available to the earner via the Checkr Pay wallet
- Accepted - which means that the appropriate government entities have acknowledged receipt of the document. The 1099 will then be automatically emailed to the earner. We will also notify the earners via SMS, and an in-app banner that the 1099 has been emailed, and is available for download from the Checkr Pay wallet.
- Rejected - This can happen when the IRS detects a mismatch with the earner's SSN and name. You will receive an email alerting you to the error, and our team will also get an alert. If changes are needed regarding the earner's PII, reach out to us at customersupport@checkrpay.com.