Power of PAYBOX®
EIPP: The Cure for 1099 Headaches
There are a lot of good reasons to move to an electronic invoice presentment and payment (EIPP) environment.
Lately, I have been seeing a number of companies looking for an e-invoicing solution that will not only provide all the traditional capabilities of e-invoicing, but also provide the ability to streamline the collection, validation and management of 1099 forms.
Businesses must currently file a 1099 form for purchases of services from non-corporate entities. As part of the federal health reform legislation, the government proposed implementing more rigorous 1099 requirements. Pressure from the business community compelled the government to put aside those plans, at least for the time being.
An EIPP platform can take most of the hassles — and the potential risk of penalties — out of effectively managing the 1099 reporting process, now and in the future.
The profile management capabilities of Direct Insite’s PAYBOX® Self-Service Supplier Portal enables businesses to upload 1099 forms and automate the workflow required for completion and validation. PAYBOX® users also can set-up reminders of when it’s time to update individual 1099 forms.
The best part: 1099 forms are just one piece of supplier information that can be tracked in the PAYBOX® Self-Service Supplier Portal.
With 1099 reporting already a burden for businesses, and possible government mandates sure to complicate matters, more businesses should consider EIPP as a way to streamline 1099 processes.