| Will the new 1099-NEC (Nonemployee compensation) for 2020 be available in Accounts Payable? |
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Per IRS requirements, beginning with year 2020, there is a new 1099-NEC form to report non-employee compensation amounts. Due to the creation of Form 1099-NEC, the 1099-MISC has been revised for reporting other amounts.
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Resolution | [BCB:5:Third-party support:ECB]
The new form 1099-NEC Nonemployee Compensation is available as of version 20.3, the Sage 300 CRE year-end version for 2020. This also includes changes to the 1099-MISC form.
Refer to IRS.gov for the 1099-NEC and 1099-MISC changes and instructions.
Preparing for the 1099 form changes (AP Setup, Vendors, 1099 Settings tab):
- IMPORTANT: Make sure your 1099 corrections for 2019 are completed before upgrading to the 2020 year-end version (20.3).
- Vendors who have the 1099-MISC non-employee compensation form type selected before upgrading to the 2020 year-end version (20.3), will be automatically updated to the new 1099-NEC Non-employee compensation form type.
- Vendors who are marked for Gross Proceeds Paid to Attorney will also need to have the 1099-MISC Rents form type selected for the amount to print in the correct box. (Note: This form type is changing to 1099-MISC Rents/Gross Proceeds with the 2020 year-end version (20.3)). Previously, Gross Proceeds Paid to Attorney was reported using form type 1099-MISC Non-employee Compensation. Starting with year-end 2020, it will be reported using form type 1099-MISC Rents/Gross Proceeds. Be sure to change the form type for vendors where Gross Proceeds Paid to Attorney should be reported. Gross Proceeds Paid to Attorney will not work with any other form type.
- The Recipient Tax ID Name field will be expanded from 30 characters to 70 characters with the 2020 year-end version (20.3). If you have vendors with an abbreviated Recipient Tax ID Name due to the 30-character limit, you will be able to enter the full name up to 70 characters after upgrading.
DocLink: How do I set up a vendor to receive a form 1099 (NEC, MISC, INT, or DIV) in Accounts Payable?
[BCB:156:Chat 300 CRE US:ECB] |
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