Form 1099 Reporting: Calendar-Year, Payment-Date Basis

Form 1099 Reporting: Calendar-Year, Payment-Date Basis

Form 1099 reporting is completed on a calendar year basis (January 1 – December 31) and is based on the actual payment date to the vendor, not the invoice date or expense posting date in your financial statements.

Because Social Good Fund uses accrual-based expense recognition during the fiscal year, the date an expense appears in your project financials may differ from the year in which it is reported on a Form 1099.

Key Principles of 1099 Reporting

1099 reporting is based on the date payment is issued (check date or ACH payment date). It is not based on the invoice date, invoice submission date, or the transaction posting date in Sage.

• Payments made between January 1 and December 31 are included in that same calendar year’s 1099 reporting.

• Payments issued in January for prior-year work are included in the new calendar year’s 1099 totals.

Example

If a contractor performs work in December 2025 and submits the invoice in January 2026:

• If the payment is issued in January 2026, it will be reported on the contractor’s 2026 Form 1099, even if the expense was accrued back to 12/31/2025 in your project financials.

This difference occurs because:

• Your project financials follow fiscal-year accrual accounting rules.

• 1099 reporting follows IRS cash-basis reporting requirements.

Reporting Threshold and Entity Types

• Vendors who receive $2,000 or more in eligible payments during the calendar year will receive a Form 1099.

Per IRS requirements, Social Good Fund issues Form 1099s to:

• Sole proprietors

• Partnerships

• LLCs

Social Good Fund does not issue Form 1099s to:

• C Corporations

• S Corporations

• Tax-exempt 501(c)(3) organizations

• International vendors

Domestic Vendors - Form W-9

Vendor classification is determined based on the information provided on the vendor’s completed Form W-9. A W-9 must be collected prior to payment to ensure accurate reporting and compliance. If you have questions about 1099 reporting, please contact [e-mail]

International Vendors – Form W-8 Requirement

Social Good Fund requires a completed and signed Form W-8 from all international individuals and entities, regardless of payment amount.

A Form W-8 must be collected and approved before payment is issued.

International vendors are not issued Form 1099s. However, proper documentation is required to ensure compliance with U.S. tax withholding and reporting rules.

Failure to provide a completed Form W-8 may result in delayed payment. If you have questions about 1099 reporting or international vendor documentation requirements, please contact [e-mail].