I am not familiar with backup withholding from payments on 1099s.  Sage BusinessWorks only generates a Misc-1099 and calculates 1099 Totals  based on checks paid to the vendor.  You set up a vendor for 1099s and define which 1099 box but going into:

• Select AP, Vendors, Maintain Vendors. 
• Select the Other button. 
• Enter the Federal ID# under the 1099 option. 
• Select the Box# where the payments should display.

Please see Knowledge Base article #56269 "1099 processing FAQ".  If you have additional questions on how to set up 1099s in Sage BusinessWorks, then I would recommend working directly with a support analyst by calling 800-447-5700 to address your specific questions and what options there are in Sage BusinessWorks.

Thanks,

Coleen