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1042-S

Factoring Assets

ONESOURCE Trust Tax allows you to factor assets at any time during the year to reallocate asset income posted throughout the year. Asset factoring can be completed by:
  • Manually adding factors using ONESOURCE Trust Tax.
  • Using the FIS Wall Street Concepts (WSC) Income Reallocation Service (sometimes referred to as the Income Reallocation Service or IR service).
If you manually add factors using ONESOURCE Trust Tax, the asset type must be
Mutual Fund
 or the factor flag must be set to
Yes
.
If you use the Income Reallocation Service, WSC sends factors (referred to as NRA factors) that are specifically for 1042-S processing. NRA factors are sent in addition to the factors (referred to as IR factors) that are used for 1041 or 1099 processing. For accounts that list NRA recipients, you must set the account so that NRA factors are used during processing. Otherwise, IR factors will be used during processing.
NRA factors can be reviewed using the following registers:
  • Assets with WSC Income Reallocation NRA Factors
    -Identifies the assets that WSC receives NRA factor information for and that the PAN has postings for in the current tax year. After ONESOURCE Trust Tax loads the factor file from WSC, you can use this register to access the asset detail page to review and apply factors.
  • The
    New NRA Factors from WSC Since Last Applied
     register includes the same columns as the
    Assets with WSC Income Reallocation NRA Factors
     register, but displays only those assets where ONESOURCE Trust Tax received NRA factors from WSC that are newer than those last applied for the asset.
  • Assets with Posting Changes Since NRA Factors Applied
    -Displays assets where the asset data changed since NRA factors received from WSC were last applied. Data changes that result in an asset being included in this register are:
    • The tax effective date of a mutual fund transaction was changed to another year in ONESOURCE Trust Tax.
    • At least one new mutual fund transaction was loaded from a bridge file.
    • At least one mutual fund transaction was updated by a bridge file.
  • Weighted Average Difference from WSC NRA Factors
    -Shows the effect of each NRA factor change received from WSC for an asset. This register is updated by a batch program once each day. If NRA factor changes are applied during the day and the applicable NRA factors are included in this register then the changes do not display until the batch program is run the following day.

Using NRA Factors for an Account

If you use the Income Reallocation Service to factor assets, the accounts that list NRA recipients must be set so that NRA factors are used during processing. If you have accounts with domestic and NRA recipients, you will need to switch the factors so that IR factors are used for 1041 or 1099 processing for the domestic recipients, and NRA factors are used for 1042-S processing for the NRA recipients.
To use NRA factors for an account:
  1. Open the account.
  2. Select the
    Admin Controls
     subtopic.
  3. Under the
    Processing/Assignments
     collapsible section, select
    Use NRA Factors
     from the
    Factoring Option
     drop-down list. This drop-down list is located in the
    Other Options
     group box. To use IR factors for domestic recipients, select
    Use IR Factors
    .
  4. Select
    Save
    .

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax