| Description |
Definition of Qualified.
|Decides how 1099 is recorded
Non Qualified:
* Refund - Cash refund is reported in 1099
* Pay Equity - Cash paid on non qualified equity is reported in 1099
Qualified:
* Refund - Total refund is reported in 1099
* Pay Equity - Cash paid on qualified equity is not reported in 1099 as total refund is already reported on the year refund is processed.
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Qualified is setup in Refund Rate maintenance.
If the equity being paid out is marked as Qualified, Tax is already reported while refund is made. Not required to report again.
If paid out is marked as Non Qualified, then Cash Amount has to reported in 1099 field of voucher.
There is a possibility that customer can be paid, equity which is qualified and non qualified together. This should not be allowed. If there is a mix, show the alert, "Both qualified and non qualified equities cannot be paid out together in one check".
Usually this does not happen.
[http://inet.irelyserver.com/display/PAT/1099]
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