Is your wife's company in Canada? If so, she only needs to fill out her business tax return and use standard accounting practice to record payments, as long as she didn't hire those people (employees are quite different from contract or bus-bus payments (which is what royalities tend to be)).
If she hired them, then she has some more work to do...
Same for your 1080 comment, btw... actually I've never heard of a 1080. 1099, for sub-contractors, or W2 for employees. And even then, you normally wouldn't use a 1099 unless you exeeded $600 in the calendar year.
Hope this helps,