Freight calculation in 1099 as per IRS
2011 Instructions for Form 1099-MISC.
Under Exceptions. it is mentioned
"Some payments are not required to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include:
- Generally, payments to a corporation; but see Reportable payments to corporations on page 2;
- Payments for merchandise, telegrams, telephone, freight,storage, and similar items"
Under Exceptions. it is mentioned
"Some payments are not required to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include:
- Generally, payments to a corporation; but see Reportable payments to corporations on page 2;
- Payments for merchandise, telegrams, telephone, freight,storage, and similar items"
But in our PeopleSoft current setup for Withholding options the
Wthd Basis Amt Determination: is based on
a) Apply Net is checked
b) Apply Sales Tax is unchecked
c) Apply Freight is checked
d) Apply Misc Chg is checked
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