Open Forum

Expand all | Collapse all

1099 NEC vs Box 7 what's this all about?

  • 1.  1099 NEC vs Box 7 what's this all about?

    GPUG ALL STAR
    Posted 23 days ago
    Edited by Zubin Gidwani 23 days ago

    Armanino had a good webinar summarizing the 1099 changes
    https://www.armaninollp.com/events/1099-filings-for-2021-webinar/?utm_campaign=business-outsourcing-general-accounting-outsourcing-2012-em20370266&utm_medium=email&utm_source=article
    (and btw Armanino is now offering 1099 filing services)

    here are the cliff notes:

    • What is the 1099-NEC?
      • A new form dedicated for reporting Non-Employee Compensation. Starting with 2020, you will no longer report NEC amounts on the  1099-MISC form in Box 7. You will use the new1099-NEC form starting in tax year 2020. Any amounts formerly reported in Box 7 will now go into the 1099-NEC Box 1. You can also report federal tax withheld in Box 4 of the 1099-NEC. It is due to the IRS by Feb. 1, 2021. (link to IRS 1099-NEC instructions.)
    • Does the 1099-MISC still exist?
      • Yes. The 1099-MISC still has all other boxes other than Box 7. The box numbers after box 7 have been shuffled around, but otherwise, it is the same, just missing Nonemployee compensation. It is now due to the IRS by Mar. 31. (link to IRS New 1099-MISC instructions  )
    •  What if I need to fill out a tax year 2019 or prior 1099-MISC or NEC?
      • The 1099-NEC does not exist for prior years, so you will only use the NEC from tax year 2020 going forward. The IRS now has two versions of the
        1099-MISC. You will use the new version for tax year 2020 and forward, while using the old version for tax years 2019 and prior.
    •  What is a 1096 form?
      •  A Form 1096 is the summary page for all 1099's that were filed. A 1096 is only required if the 1099 forms were paper filed with the IRS. If the 1099
        forms are electronically filed, then a 1096 is not needed.
    •  When are 1099-NEC and W-2 forms due?
      •  1099-NEC and W-2 forms must be delivered to recipients by Feb. 1 and to the IRS by Feb 1.
    •  When are 1099 forms due?
      •  All 1099 forms except 1099-NEC must be delivered to recipients by Feb. 1 and to the IRS by Mar. 31, 2021.
    •  What is a 1095-C?
      • The Form 1095-C contains important information about the healthcare coverage offered or provided to you by your employer. Information from
        the form may be referenced when filing your tax return and/or to help
    • Are we still responsible for filing a 1095-C?
      • Yes, and the filing deadlines vary by state. For example, California has a March 31, 2020 deadline for information for 2019. Texas deadline is March 2.



    ------------------------------
    Zubin Gidwani
    Dynamic Budgets
    San Francisco-Bay Area CA
    ------------------------------

    Digital Acceleration Binge Day January 28, 2021 | 11:00 AM to 2:00 PM EST


  • 2.  RE: 1099 NEC vs Box 7 what's this all about?

    GPUG ALL STAR
    Posted 22 days ago

    I just posted a blog post about options for dealing with this new form! Here is a link: https://trainingbyamberbell.com/2020/12/29/training-dynamos-survival-guide-for-microsoft-dynamics-gp-and-the-new-1099-nec-form/

    I include a link to  @Shawn Dorward's 1099 SQL View and a new SQL View that works for GP 18.3 and newer (includes the NEC type).



    ------------------------------
    Amber Bell
    Training Dynamo LLC
    Email: amber@trainingdynamo.com
    Website: www.trainingdynamo.com
    Twitter: @trainingdynamo
    ------------------------------

    Digital Acceleration Binge Day January 28, 2021 | 11:00 AM to 2:00 PM EST


If you've found this thread useful, dive deeper into User Group community content by role