1099 MISC - Extended Withholding Tax Reporting Offers Two Correction Programs

  • by Martin Ullmann, President, DAP Consulting
  • November 15, 2003
1099 MISC reporting is one of those processes that never gets the attention it really deserves during implementations or upgrades. The reason is that 1099 MISC reporting is not a main business process, but rather a task that needs to be done once a year in the United States.

1099 MISC reporting is one of those processes that never gets the attention it really deserves during implementations or upgrades. The reason is that 1099 MISC reporting is not a main business process, but rather a task that needs to be done once a year in the United States. Therefore, a lot of implementation teams decide to use simple or traditional withholding tax reporting rather than extended withholding tax reporting. The word “simple” probably implies that this function is easier to implement and use. However, my experience shows that by using simple withholding tax reporting, you lose a lot of SAP functionality, and actually the effort to implement it is the same as for extended withholding tax.

For example, did you know that extended withholding tax reporting has two correction programs to identify discrepancies in the withholding tax code between your master data and financial documents? Simple withholding tax does not provide any.

Martin Ullmann

Martin Ullmann is president of DAP Consulting, which specializes in public sector industries. He has more than 12 years of experience with SAP R/3. His main area of expertise lies in the FI/CO
area, with focus on new components, integration, enhancements, and business process improvements.

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