1099-NEC – Schulz Consulting

What Are The Minimum Versions to Process 1099 and W2 Forms in Sage 100 for 2021?

October 19, 2021 by Wayne Schulz

Sage has updated guidelines on the minimum supported versions to perform year-end for 2021 in Sage 100.

These versions are required for anyone printing tax forms 1099 or W-2 although there are certainly other “ticking time bombs” associated with staying on an unsupported release of Sage 100 – namely pending discontinuation of TLS 1.0 and lack of an upgrade path for the paperless office Amyuni drivers.

Sage 100 minimum supported versions for year-end:

Payroll

Payroll Tax Update (release 12/14/2021). Tax information is maintained in CLAD (Sage tax cloud) and system table changes will be pushed down via the Payroll Tax Update utility within the software.

Sage 100 Payroll 2.22.0 (release 12/2021)

Sage 100 Payroll 2.21.3.0 with PR6032-T Hotfix for the 941

Note – October 2021 – 1099-NEC Form Layout for the 2021 Tax Filing Year: 1099 NEC form (Copy A) has been redesigned for the year 2021 by the IRS to 3/page instead of 2/page as in the year 2020

Accounts Payable 1099’s
Sage 100 2021.2 (7.00.2.0) no IRD needed
Sage 100 2020.4 (6.20.0.4) no IRD needed
Sage 100 2019.5 (6.10.5.0) plus IRD for 2021
Aatrix year-end update will be released mid-December (before 12/20/21).

Sage 100 Year-End Resources for 2021

Sage City year-end center

Sage Checks & Forms ( Please note the 1099-NEC layout change for filing year 2021 )

Hold Off On Running AP_Update1099_utl For Now

November 25, 2020 by Wayne Schulz

In a post on their Sage City forum, Sage indicated that there will be an updated AP_Update1099_utl coming before the end of 2020.

This utility was used in conjunction with these product updates:

2018.10
2019.4
2020.1

After installing the product update the user would run the AP_Update1099_utl and certain data from the 1099-MISC would be transferred so that it would appear on the new 1099-NEC.

Sage spotted an issue as well as areas for improvement and according to this post on Sage City they will add the following features to the utility before years end.

Will now work for data from 2020 and greater. Originally this was only designed for 2020 data assuming that all users would run this before any 2021 data was entered.
A prompt will be added to warn the user if the utility was already run for the current company.
Will now move the MISC buckets in AP_OpenInvoice if there is a balance.

It’s unknown if this will remain a “run once” type utility or whether Sage might update the utility so that it could be run more than once.

For now we recommend holding off on running the utility until an update arrives.

How To Add 1099-NEC To Your Sage 100 Tax Forms

October 29, 2020 by Wayne Schulz

Starting with the 2020 tax year the IRS has updated the 1099 form and added the 1099-NEC which replaces some of the reporting on the previous 1099-MISC form.

An updated utility was released on December 15, 2020, which allows for moving data that may have been in open A/P invoices. Read the Sage KB entry here for more information and to download the utility.

The IRS have essentially removed the non-employee compensation reporting from the 1099-MISC and added it to form 1099-NEC.

You can review the 2020 rules for form 1099-MISC and 1099-NEC here.

For the purpose of Sage 100 1099-NEC reporting you will need to be on one of the following Sage 100 or Sage 100cloud versions.

The new form 1099-NEC Nonemployee Compensation was included in Sage 100 versions 2020.1, 2019.4, and 2018.10 only. This will also include changes to 1099-MISC.

A utility is available to allow customers to move data already updated in year 2020 from the 1099-MISC Form Box 7 Nonemployee Compensation box to the 1099-NEC form Box 1 for year 2020. This utility should only be used as a one-time tool for tax reporting year 2020 only. See AP_Update1099s_utl.pdf or details on how to use this utility in Sage 100 2020, 2019.3, and 2018.9.

Payroll

Sage 100 Year-End Resources for 2021

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