If you are submitting a print & mail upload and you select the below criteria then you will have the opportunity to select the Service Bureau 1099-NEC State Direct Filing Add-On.
Criteria 1: If you have selected the 1099-NEC form type, in any way, on Step 2 "Form Types".
This can be whether you select "All Form Types", which includes the 1099-NEC, or if you select the 1099-NEC form type directly.
Criteria 2: If you have also selected the "I request immediate filing with the IRS".
Many users select this option, when uploading 1099-NEC forms, because the 1099-NEC forms have the same IRS deadline for printing, mailing, and electronic filing to the IRS. This saves the extra step of submitting a second IRS electronic filing upload.
Once the above two criteria are selected Step 7 "1099-NEC State Direct" will become visible. Check the checkbox to add the limited 1099-NEC state filing feature to your order.
If you select this 1099-NEC State Direct Add-On, the software will first create two uploads once you hit "Create File".
Upload 1: This will be your print, mail, and IRS electronic filing upload.
You will be asked to signed the control totals for it before submitting.
Upload 2: This will be your 1099-NEC state direct electronic filing upload. It will automatically start a new upload process and cycle through all the eligible states in your order.
The control totals will likely be different than those of your IRS filing upload. This is because:
Not every state requires the 1099-NEC to be reported directly.
Many states have dollar value thresholds for reporting and only records above those thresholds are included.
The Service Bureau does not support every state that requires 1099-NEC state direct reporting.
METHOD 2 - SERVICE BUREAU IRS ELECTRONIC FILING, ADD-ON
If you are submitting a Service Bureau IRS electronic filing upload and you have the 1099-NEC form type included then you will have the opportunity to select the Service Bureau 1099-NEC State Direct Filing Add-On.
Once the above two criteria are selected Step 6 "1099-NEC State Direct" will become visible. Check the checkbox to add the limited 1099-NEC state filing feature to your order.
If you select this 1099-NEC State Direct Add-On, the software will first create two uploads once you hit "Create File".
Upload 1: This will be your IRS electronic filing upload.
You will be asked to signed the control totals for it before submitting.
Upload 2: This will be your 1099-NEC state direct electronic filing upload. It will automatically start a new upload process and cycle through all the eligible states in your order.
The control totals will likely be different than those of your IRS filing upload. This is because:
Not every state requires the 1099-NEC to be reported directly.
Many states have dollar value thresholds for reporting and only records above those thresholds are included.
The Service Bureau does not support every state that requires 1099-NEC state direct reporting.
METHOD 3 - 1099-NEC STATE ONLY FILING
To create a 1099-NEC state only Service Bureau upload please select the "Filing with the State Upload" button from the Service Bureau screen.
This will open the 1099-NEC State Filing Upload Wizard. This method will only process 1099-NEC records for state filing (not printing/mailing or IRS electronic filing).
This process can be run before, or after, any printing/mailing or IRS electronic filing upload. It is designed so that it can be run at any time.
Once you click "Create File" the software will cycle through all eligible states and create one single upload for you to sign off on.
Upload: This will be your 1099-NEC state direct electronic filing upload.
The control totals will likely be different than the total number of 1099-NEC records that you have. This is because:
Not every state requires the 1099-NEC to be reported directly.
Many states have dollar value thresholds for reporting and only records above those thresholds are included.
The Service Bureau does not support every state that requires 1099-NEC state direct reporting.