With 2021 drawing to a close, that means it’s time to start planning for 1099’s.
As you know, beginning in tax year 2020, nonemployee compensation, previously reported in Box 7 on form 1099-MISC, is now required to be reported on form 1099-NEC.
Additionally, beginning in tax year 2021 the 1099 NEC form has been updated from a 2-part form to a 3-part form. The filing date for the 1099-NEC for tax year 2021 will be Friday, January 31.
As part of your planning to meet this updated requirement we know you will be looking to understand how Dynamics GP will accommodate the new 1099-NEC filing requirement.
For Clients currently using Dynamics GP 2016
Microsoft released a Year-End update in 2020 that will extend the 1099 reporting and printing functionalities to support the 1099-NEC filing. Clients who have deployed the Year-End Update can contact TMC to discuss the addition of the updated 3-Part form.
Clients who have not deployed the 2020 Year-End Update will not have access to the NEC functions and will either need to complete the 2020 Year-End update or utilize Third-Party software to complete their filing.
Note: There are no additional updates available for Dynamics GP 2016. Clients on Dynamics GP 2016 will need to upgrade to a current version to receive any future 1099 updates.
For Clients currently using Dynamics GP 2018
(Including GP 2018 R2, GP 18.2, and GP 18.3 Microsoft has released version GP 18.4.)
Released in October, GP18.4 extends the 1099 reporting and printing functionalities to support the 1099-NEC filing including the updated 3-Part form. For Clients looking to upgrade to GP 18.4, we are happy to complete a focused review of all 3rd Party Software in use to ensure compatibility prior to scheduling the upgrade.
Note: For Clients currently on GP 18.3 ONLY TMC can assist you in adding the updated 3-Part NEC form.
For Clients currently using Dynamics GP 2015 or Older
Microsoft does not offer an enhancement to the existing 1099 reporting and printing functionalities and the 1099-NEC filing is not supported.
3rd Party Options for 1099 Reporting
There are many 1099 reporting options available, including out-of-the-box software available for purchase at Office Supply stores. For Clients looking for a solution that can be installed and used in conjunction with Dynamics GP, TMC can suggest Greenshades Tax Filing Center.
For pricing on Greenshades or to schedule a demo please contact your account manager by email or fill out the form below.