It’s hard to believe that 2020 is finally coming to an end! This is the time of year we start preparing for year end, and that means making sure we have everything prepared for year-end tax forms. As if we hadn’t experienced enough change this year, the IRS is throwing one more major switch our way. Form 1099-Misc Box 7 is being replaced with the new Non-Employee Compensation Form 1099 (1099-NEC). So, what does that mean for our Sage Intacct customers?
Starting November 13, 2020 with the 2020 R4 Release, the ability to select 1099-Misc Box 7 will be removed. Prior to the R4 release, Sage Intacct users who process 1099s will need to complete some updates to their 1099 vendor records to ensure that the transactions are appropriately flagged to print on the new 1099-NEC Forms.
Prior to November 13, a Sage Intacct user with administrative rights will need to manually edit the vendor records who are currently flagged as form 1099-MISC Box 7. Within the vendor record, edit the 1099 form and box and select 1099-NEC, Box 1. Select to update just 2020 transactions, you do not want to update 2019 balances. Please keep in mind, if you have payments to a vendor in 2020 where some would be 1099 reportable but others would not be reportable, we recommend using caution when making this selection as it will update *all* of the 2020 payments for the vendor, even if they were not previously marked as 1099 reportable. You also have the ability to export your vendor list, make the updates in excel, and re-import with the new form and box. The import feature by default does not update the previous transactions. Next, you’ll need to update the vendors’ beginning balances for the new 1099-NEC form. We recommend running the 1099 report for all vendors prior to updating your vendor box information. Export the into Excel and sort by memo field to obtain all the initial values and use the data to populate the import template. Populate the Vendor 1099 Open Balance. Input a NULL in the amount for Form 1099-Misc-Box 7. Finally, re-run your reports to reconcile to your previous reports to ensure that all transactions were appropriately moved to the new form and box.
Don’t forget to order your supplies early so you’re prepared for the January 31 deadline to issue 1099s. There is a link from your Intacct home screen under resources “Checks and Supplies” to order your supplies. These are the only Intacct “Supported” forms. As a reminder, you can print your 1099/1096 Forms directly out of Sage Intacct. Sage Intacct does not do the filing for you, this will still need to be done online or by mail. There are several online 1099 processors that will file and send your forms for you as well. You can review Intacct’s recommended vendors on marketplace.intacct.com and searching for 1099.
Remember, these changes need to be completed before November 13. If you need any assistance with making these changes please reach out to our Intacct Support Team at firstname.lastname@example.org