A medical device manufacturer shrinks 1099 print & mail to one day with Sovos

New Sovos Tax Information Reporting Solution Solves Escalating Tax Challenges for Accounts Payable Leaders
Case Study

Medical-Device Manufacturer

A major manufacturer of medical devices cut the time required toprocess and distribute 1099 forms from a week to less than a dayusing Sovos’ 1099 reporting service.

Summary

Business Challenges

  • The manufacturer’s ERP system couldn’t keep up with changes in 1099 form layouts.

  • The company had to process and mail 1099 forms manually with a time-consuming method.

Solution

  • Sovos’ 1099 processing service automated manual processes.

  • With Sovos, the company could transfer information from its ERP system directly into Sovos’ service.

Benefits

  • The time required for 1099 processing and mailing has shrunk from a week to less than a day.

  • Sovos has made the accounts payable team lead’s job much easier.

The Company

This global manufacturer of medical devices and supplies traces its roots back to the early 20th century in the United States. It is now headquartered in Western Europe. The company processes about 1300 form 1099s per year.

The Challenge

The manufacturer processed 1099 forms using an ERP system. However, the system’s printing capability failed to adapt to changes in the layout of pre-printed forms. When boxes moved on forms, the system could no longer print inside them. As a result, employees the company’s accounts payable department had to manually feed forms into a printer, fold them and then have them heat sealed at an office-supply store for mailing. The process of printing and mailing 1099 forms took about a week.

The Solution

The company adopted Sovos’ 1099 reporting service. Employees now download 1099 information from the ERP system and upload it into the Sovos service to create 1099 forms. The accounts payable team sends the forms to the company’s mailroom for printing and mailing. Working with Sovos has made the process of creating and mailing forms faster and easier and has eliminated the need for pre-printed form stock.

“It makes my job easier. Preparing 1099 forms to mail went from a week process to not even a day.”

Accounts Payable Team Lead

Medical-Device Manufacturer

The Benefits

Using Sovos’ 1099 reporting service, the company has streamlined its reporting processes. The time required for the company to process and mail 1099 forms has shrunk from one week to less than one day. Sovos has also made the company’s accounts payable team lead’s job easier and has allowed AP employees more time to pursue critical activities other than tax information reporting.

Why Sovos?

At one point, after manually feeding forms into a printer, folding them and taking them to an office-supply store to be heat sealed for mailing, the manufacturer’s AP team realized the forms were folded incorrectly for heat sealing. The team had to recycle more than 1000 forms and start the process over again. Sovos eliminated the need for such inefficient and timeconsuming processes. Critically, Sovos also enabled the company to validate Tax Identification Numbers (TINs) before creating 1099s.