Get ready for the new Form 1099-NEC with Sage Intacct
Are you aware of the 1099 filing change issued by the Department of Treasury on the way in which non-employee compensation payments are reported? Previously, these payments were reported on Form 1099-MISC. For the 2020 form, these payments will now be reported on Form 1099-NEC and must be filed by February 1, 2021 with the IRS.
If you’re not yet aware of these changes, general instructions for filing can be found at https://www.irs.gov/pub/irs-pdf/i1099gi.pdf. The actual 2020 Form 1099-NEC can be found at https://www.irs.gov/pub/irs-pdf/f1099nec.pdf. CLA (CliftonLarsonAllen) provides a year-end filing update closer to the end of the year. The update(s) provide information related to changes with year-end payroll filings, including W-2’s and 1099’s.
Sage Intacct is aware of the change and the form is targeted to become available with their 2020 Release 3 in August. This means you should be able to select the 1099-NEC form on vendor records and transactions following this release. Until then, continue to record the current non-employee compensation payments against the Form 1099-MISC in Sage Intacct. Stay tuned for a second blog post after Release 3 to help guide you through the process of updating your vendor records within Sage Intacct.
To stay up to date with our blog, please subscribe to be notified of new posts as they are released. Also, make sure to register now for our November 2020 1099 Best Practices webinar. We will cover the changes and how to make the necessary adjustments in your Intacct environment for Vendors that have payables coded for 1099-MISC and need to be moved to the new Form 1099-NEC.
Ashley Klapperick is a Consulting Director with CLA’s Intacct team. Ashley brings several years of team building, company collaboration and software experience in a variety of industries. She has a passion for leveraging technology to lead finance teams through strategic software implementations with a mission of increasing internal efficiency through business process improvements.
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