New 1099 NEC Form for the Year 2020 for Accounts Payable Nonemployee Compensation

Products

Sage 100

Summary

  • 1099-NEC form new starting the year 2020 for Accounts Payable Non-employee Compensation.
  • Nonemployee Compensation box removed from 1099-MISC starting year 2020 will now be on Form 1099-NEC.
  • 1099-MISC fields are incorrect.
  • 1099-NEC form available in Form 1099 Tax Reporting in Aatrix.

Cause

Note: This utility has been updated as of 12/15/20. If you’ve installed this update before this date, please re-download and install this utility.

Starting with the year 2020, a new 1099-NEC (Nonemployee compensation) form was created and the Nonemployee Compensation field was removed from the 1099-MISC form per IRS requirements.

Due to the creation of Form 1099-NEC, there is a revised Form 1099-MISC and rearranged box numbers for reporting certain income.

Due to the possibility of Tax Forms being modified before they are due the following year, The Tax Forms in Accounts Payable Form 1099 Reporting and Payroll Federal and State eFiling (Aatrix) are normally updated at year-end.

Resolution

The ability to record 1099 NEC was released on Sage 100 Versions 2020.0, 2019.3, 2018.9. This only provided the code to update to the correct 1099 NEC boxes and use the utility to move the 1099 MISC values already recorded for the year 2020 from 1099-MISC to 1099-NEC as needed.

Note: If you need to print the 1099 NEC and not just record, you will need to be on version 2018.10, 2019.4, or 2020.1. Do NOT confuse v6.20.1 with 6.20.0.1 (v2020 with NO Product Updates). Must install PU1 for v2020.

The utility is only to be used if 2020 1099 MISC boxes were already populated and need to be moved to the year 2020 1099 NEC. (Moving the data can also be done manually) Upgrade to the next Product Updates will be required for Printing the 1099s.

The ability to report 1099 NEC changes was released on Sage 100 Versions 2020.1, 2019.4, 2018.10. This provided the code to map to the Aatrix Reporting application.
The last piece is the Form Update that will be released by Aatrix in their Year-End Update to print or submit forms electronically. This is usually mid-December. Until the Forms are updated you may receive messages when attempting to print 1099-NEC for the year 2020 such as:

“Error loading form 1099-NEC……” or “Missing form page …………\Sage\Aatrix\Forms\1099_NEC………”

See IRS.gov for 1099-NEC, 1099-Misc changes, and instructions.

Other changes made to the 1099 Misc form:

  • Renamed the Vendor field “Misc Box 9” to be “Payer Made Direct Sales $5000+”. This checkbox is now used by Misc Box 7 (moved from box 9)
  • A utility is available to allow customers to move data already updated in the year 2020 from the 1099-MISC Form Box 7 Nonemployee Compensation box to the 1099-NEC form Box 1 for the year 2020.
    • This utility should only be used as a one-time tool for tax reporting year 2020 only. This utility is run by individual company code and will need to be run in each company.
    • See AP_Update1099s_utl.pdf attached below for details on how to use this utility in Sage 100 2020, 2019.3, and 2018.9.