View Source

NEW FOR TAX YEAR 2022: The 1099 Pro Service Bureau will support both Combined Federal State Filing (CF/SF) and direct state filing where required. Subject to any late season changes, 1099-NEC returns for select states will be automatically processed through the CF/SF program free of charge. In addition, there are still more than 25 states and the District of Columbia that require some form of direct state filing. To ensure compliance with state obligations, 1099 Pro Service Bureau customers not planning to manage state filing on their own must purchase the additional 1099-NEC state filing service as described below.

IMPORTANT NOTES (TAX YEAR 2022)

The 1099 Pro Service Bureau provides an add-on option where the Service Bureau can perform state direct reporting on your behalf. Reporting consists of:
- 1099-NEC Originals for Tax Year 2022.
- Corrections, or other form types, are not supported.
The add-on option will include all relevant state reportable forms per upload. The 1099 Pro Service Bureau cannot pick and choose individual forms or states in an upload.
- Reporting will be provided only for supported states, as listed in the "Supported by 1099 Pro Service Bureau" column in the 1099-NEC State Reporting Chart, and per the states' reporting thresholds:
  - Y = Supported
  - Y - Only If No Withholding = Supported only for records that do not have state tax withheld.
  - Y - Customer Must Submit Reconciliation Form Separately = Supported. However, the customer is responsible for the extra action of submitting the state reconciliation form directly to the state.
    - To obtain State Reconciliation Forms, see 1099-NEC State Reporting Chart.
    - NOTE: Reconciliation Forms are submitted to the states directly NOT to 1099 Pro.

Status	States	Count	Service Bureau Fees
Combined Federal State Filing Program (CF/SF) -	AR, CA, HI, ID, LA, MD, MI, MO, OK	9	No Charge
Combined Federal State Filing Program (CF/SF), Requires Customer to Submit Reconciliation Form -	NE, NJ	2	No Charge
Fully Supported -	KY, MA, MN, MS, ND, OH, OR, SC	8	Yes
Supported, Requires Customer to Submit Reconciliation Form -	AZ, CO, DC, DE, GA, NC, UT, VA, VT, WI	10	Yes
Supported, Only If No Withholding -	AL, CT, KS, MT	4	Yes
Not Supported -	AS, GU, IA, IN, MP, NM, PA, PR, RI, VI, WV	11	N/A
Reporting Not Required -	AK, FL, IL, ME, NH, NV, NY, SD, TN, TX, WA, WY	12	N/A

What To Do if the State is Not Supported by the Service Bureau
- First, check to see if you have any tax records for the unsupported states AND whether or not those records exceed the reporting threshold for those states. If you don't, then you do not have a reporting requirement in those states!
- If you do have tax records that are in unsupported states and that exceed the state reporting thresholds then consider purchasing, or upgrading to, the 1099 Pro Enterprise Software, or Corporate Suite software.
  - The 1099 Pro Enterprise Software, and Corporate Suite software, both provide the ability to create your own state files (paper or electronic) that you can then submit directly to the state, per the requirements.
    - This is the available option for reporting to:
      - States that are not supported by the Service Bureau
      - States that you perform withholding in but are labeled "Y - Only if no withholding"
    - 1099 Pro recommends the 1099 Pro Enterprise software for any customer with less than 20,000 records.
    - The Enterprise software will require a separate installation and setup. The 1099 Pro Professional software can be updated directly to the 1099 Pro Enterprise Software without losing data.