Open Forum

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
------------------------------

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
------------------------------

Original Message:
Sent: Dec 28, 2020 02:46 PM
From: Zubin Gidwani
Subject: 1099 NEC vs Box 7 what's this all about?

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
------------------------------