Feature - 2020 1099-MISC and 1099-NEC Form Support

Release Date: 11/12/2020
Revised Date: 12/29/2020

Elliott Version: 8.5 and Up

1099 Changes Starting 2020

For tax year 2020, non-employee compensation has been removed from the 1099-MISC form and should be reported on a new form 1099-NEC.

File Form 1099-MISC for each person to whom you have paid the following during the year:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
  • At least $600 in:
    • Rent.
    • Prizes and awards
    • Other income payments
    • Medical and health care payments
    • Crop insurance proceeds
    • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate
    • Payments to an attorney
    • Any fishing boat proceeds

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

File Form 1099-NEC, Nonemployee Compensation (NEC), for each person in the course of your business to whom you have paid the following during the year:

  • At least $600 in:

  • Services performed by someone who is not your employee (including parts and materials) (box 1);

  • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 1); or

  • Payments to an attorney (box 1). (See Payments to attorneys, later.)

You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.

See https://www.irs.gov/instructions/i1099msc for more information.

Vendor File Maintenance

Box information has been added to the Vendor File Maintenance screen to give more information on what should be entered in the field:



13. 1099 Category - Enter  1-8 for boxes 1-8 on the 1099-Misc. Entering a 7 will indicate that it will be included on the 1099-NEC form. Enter A for box 10, D for box 13 or E for box 14 of the 1099-Misc form. Enter any other value to print the Vendor's purchases on the 1099-NEC form.


Printing 1099 MISC or NEC
The Accounts Payable-> Processing-> Print/Create 1099 Forms application has been changed to support the printing of the 1099-NEC form. A new menu option to Print 1099-NEC forms is now available.


Print 1099-MISC
To print the 1099-Misc form for any 1099 category that is not non-employee compensation, choose the Print 1099-Misc forms option.


This application prompts for the 1099 category.

8. 1099 CategoryEnter 1-6, 8, A (box 10), D (box 13), or E (box 14). Entering any other value will warn the user that they should print the 1099-NEC form instead.

Printing 1099-NEC

To print the 1099-NEC form, choose the Print 1099-NEC forms option.


1. Use Ytd or Last Yr Amt Paid - This allows you to close out the current year and later in the new year print 1099s based on the Last Year Amt Paid.

2. Company Name - Enter the company name as you wish it to appear on the 1099 forms.

3. Company Address 1 - Enter the company address as you wish it to appear on the 1099 forms.

4. Company Address 2

5. City, St Zip - Enter the company city, state, and zip code as you wish it to appear on the 1099 forms.
This information must be entered according to the following format.
City, St Zip Pomona, CA 91766
Please make sure to place a comma (,) between the city and abbreviated state.

6. Company Phone No. - XXX XXX-XXXX

7. 1099 Category - 1099-NEC is designed to replace Box 7 of the original 1099-MISC form. So it is likely you will enter "7" in this field. On the other hand, 1099-MISC will continue handle the following 1099 Categories: 1, 2, 3, 4, 5, 6, 8, A, D and E. However, since vendor 1099 category is a free form field, if the value is not part of this list, then it is assumed to be printed on 1099-NEC even if the value is not "7". For example, user commonly mistakenly enter "Y" to vendor's 1099 category to indicate "Yes to print on 1099." But "Y" does not correspond to any 1099-MISC form's box. So Elliott assumes "Y" means box 7 and hence to be printed on 1099-NEC with this update. You can simply enter "Y" here to print those vendors' 1099 category = "Y".

8. Starting Vendor No - Enter the starting vendor number in the range that you want to print. The default is All vendors.

9. Ending Vendor No - Enter the ending vendor number in the range that you want to print. The default is the starting vendor number to make it easy to print a 1099 form for one vendor.

10. Cut Off Amount - This is the cut‑off amount of vendor YTD payments to be reported. 



Programs Changed: AP0101, AP2100, AP21P1
Programs Added: AP21P1N
CLS



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