Creating 1099s for agent commissions and expenses from BoldTrail BackOffice (BTBO) data is a straightforward process. Although BTBO does not generate 1099s directly, it simplifies the task of gathering the necessary data. This guide will walk you through the steps, ensuring you feel confident and well-prepared.
Before you begin...
Is your BoldTrail Back Office integrated with QuickBooks? You can skip Step 1 and begin the 1099 calculation and filing process directly in Quickbooks.
To proceed with Step 1, ensure that fees and payments added to commissions have been tagged in BoldTrail Back Office.
We recommend consulting with your local tax professional to ensure compliance with tax regulations and accurately report the necessary information.
Step 1: Calculate 1099 Employee Compensation
The steps below describe how to obtain agent income and expense items to include in the 1099 Nonemployee Compensation number.
Step 1A: Agent Income (Additions to 1099 Nonemployee Compensation)
1. Agent Commissions
To get the necessary data for agent commissions:
To view at the agent summary level, go to Reports > Company Performance block > Production summary report.
To view at the transaction detail level, go to Reports > Company Performance block > Production detail report.
Ensure the correct filters, including close date and transaction status, are applied.
These reports can be exported into a spreadsheet if needed.
2. Reimbursed Expenses
Reimbursed expenses under an accountable plan should be included in 1099 Employee Compensation, while expenses not under an accountable plan should be excluded.
To tabulate individual line items, go to Reports > Financial block > Tag Line Item Detail report.
Step 1B: Subtractions from 1099 Nonemployee Compensation
1. Post-split Deductions Paid on Behalf of Agent to Third Party
Expenses paid on behalf of agents to third parties should be reported by the brokerage and excluded from 1099 Nonemployee Compensation.
To tabulate individual line items, go to Reports > Financial block > Tag Line Item Detail report.
2. Post-split Deductions That Agent Will Deduct on Their Own
Expenses paid by agents should not be excluded from 1099 Nonemployee Compensation and should be deducted by the agent.
To tabulate individual line items, go to Reports > Financial block > Tag Line Item Detail report.
Step 2: File 1099s
You can file with QuickBooks or another provider of your choice for a nominal charge, typically $3-5 per return.
Step 2A: Filing with QuickBooks
Using the BTBO QuickBooks integration makes it easy to create 1099s. The integration ensures that all necessary data is transferred seamlessly to QuickBooks, allowing you to quickly and accurately generate 1099 forms. QuickBooks can provide 1099s for agents, either gross commission or net commission.
Click here to view Quickbooks 1099 filing instructions (external site). 1099 filing is available for a limited period of time each Dec - Feb.
Click here to view BoldTrail Back Office instructions for QuickBooks integration setup.
Step 2B: Filing with Other 1099 Providers
If you prefer not to use QuickBooks, you can use any other 1099 service providers such as Track1099, Tax1099, eFile4Biz, Intuit 1099 E-File Service, and Yearli by Greatland.
Important Reminders
Electronically Filing Requirement: If you prepare 10 or more 1099s, you are required to file them electronically.
Seek Professional Advice: Always encourage your team to seek help from a qualified CPA or tax professional to ensure compliance and accuracy.