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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.

Upgrade Sage 100 Payroll Now – More Complex 2020 W-4 Form Possible

April 9, 2019 by Wayne Schulz

Heads Up: New and potentially more complex W-4 form due by 2020.

This form will seek to eliminate over and underpayments. To do so it may ask for significantly more information from employees, including:

Nonwage income, such as interest and dividends
Itemized and other deductions
Income tax credits expected for the tax year
For employees with multiple jobs, total annual taxable wages for all lower paying jobs in the household

For now, this is still being reviewed with the next draft due around May 2019. The goal is to have an updated W-4 for the 2020 tax season.

From USA Today:

The new form referenced up to 12 other IRS publications to fill it out. It was so complex and different from the previous W-4 form that Ernst & Young worried employees would struggle to fill it out correctly and employers may need to offer training beforehand.

This is a very good reason for payroll users who have not upgraded from older versions to move to Payroll 2.x ASAP since it’s unlikely the older Sage payroll will be updated to manage a more complex federal tax computation.

Sage 100 Payroll 2.19.2 was released on April 2, 2019 and is compatible with Sage 100 2018.1 and higher. For more information on the latest Sage payroll release visit this site.

Use This IRS Circular E To Verify Sage 100 Payroll Taxes In 2016

December 30, 2015 by Wayne Schulz

After the last payroll of 2015 and before your first checks are issued in 2016 you should apply the latest Sage 100 payroll tax tables. The Q1 2016 tables are available for download to anyone with an active Sage Business Care subscription.

Best practices for payroll indicate that you should test some of the tax calculations from your first payroll run of 2016. In order to do this you will need the IRS Circular E – Employer Tax Tables – for 2016 which contain the rates and schedules necessary to manually compute withholding.

Verifying that the deductions are properly computing during the first check run of the new year can save you lots of time should there be an adjustment needed in order to fine tune the computations.

Review the 2016 Circular E Federal Employers’ Tax Guide

Sage 100 Payroll Alert: ACA Reporting Deadlines Extended For 2015

December 29, 2015 by Wayne Schulz

Versions 4.5 and higher of Sage 100 are fully capable of meeting ACA reporting requirements for 2015. These versions, which must also have the latest product update and IRD installed, will work in conjunction with the Aatrix tax filing services for producing fileable ACA reports.

News today from the IRS indicates that they’ve pushed back the filing deadlines for many of the ACA forms as outlined in the following notice:

IRS Notice 2016-4 today extended the deadline for most ACA filings for the 2015 information reporting requirements (both furnishing to individuals and filing with the Internal Revenue Service (Service)) for insurers, self-insuring employers, and certain other providers of minimum essential coverage under section 6055 of the Internal Revenue Code (Code), and the information reporting requirements for applicable large employers under section 6056 of the Code.

Specifically, this notice extends the due date (1) for furnishing to individuals the 2015 Form 1095-B, Health Coverage, and the 2015 Form 1095-C, EmployerProvided Health Insurance Offer and Coverage, from February 1, 2016, to March 31, 2016, and (2) for filing with the Service the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, the 2015 Form 1095-B, Health Coverage, the 2015 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from February 29, 2016, to May 31, 2016, if not filing electronically, and from March 31, 2016, to June 30, 2016 if filing electronically.

For more information on completing the ACA reporting within Sage 100, please review this webinar recording.

IRS Percent Method Withholding Tables for 2013 (Notice 1036)

January 1, 2013 by Wayne Schulz

As of January 1, 2013 the IRS have not yet released Publication 15 – Employer’s Tax Guide. This booklet typically includes the tax withholding rules as well as percent method withholding tables some use to update their computer withholding.

In the interim the IRS have released Notice 1036 which includes the social security limits and rate as well as percent method withholding that is presently in effect as of 1/1/13. Important: These rates may change as the government votes on pending tax legislation so be sure to check back with the IRS and update any rates as required.

IRS Notice 1036: Early Release Copies of Percent Tables for Income Tax Withholding for 2013 and IRS

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