1099-NEC question

SOLVED

I have read about the utility to move 1099-MISC data to the 1099-NEC boxes.

I have a few questions.

1. Can the utility be processed at any time?

2. Is it best to run the utility at year-end, after 2020 entries and before 2021?

3. If the utility is run in 2021, will it affect both 2020 and 2021 1099 data?

Just trying to determine the best practices for using this utility.

Any thoughts are greatly appreciated!

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  • +1
    verified answer

    This is a utility intended to be run ONE time per company. It should be run after installing the NEC 1099 code changes on any of the following versions, but before entering any new 1099 data:
    6.0.9 and 6.0.10
    6.10.3 and 6.10.4
    6.20.0 and 6.20.1
    It should only be run if the user entered their year 2020 MISC data the same as the year 2019 MISC data.

    If the user has installed any of these versions and has been entering any NEC or MISC 1099 data, they should not use this utility. If the user is at a prior version than listed above, the utility should not be used. It is intended to be used with the releases listed above.

    We are currently making some minor changes to this utility that will be ready as a hot fix. I don’t have an estimate now for when the changes will be completed, except that they will be done by year end. We are modifying the utility as follows:
    1. 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.
    2. A prompt will be added to warn the user if the utility was already run for the current company.
    3. Will now move the MISC buckets in AP_OpenInvoice if there is a balance.

  • 0 in reply to SusanneN

    We recently updated from Sage 100 2019.0 to 2019.4 as well as Payroll 2.20.1 -> 2.20.3 -> 2.21.0. We also installed the hotfixed AP6001T utility. After performing those updates (and doing the normal data conversion after update) we ran the AP_Update1099s_utl on our company. The log indicated that it properly moved data from MISC, Box 7 to NEC, Box 1.

    However, when we pull up one of the vendors that this was done for, it properly shows the Default form as "Nonemployee Contribution" but the Box field is blank. In fact, the dropdown is empty. We're wondering if this is expected behavior?

    As additional datapoints, we also ran the AP_1099MISC7_utl utility with no apparent change. We did open the AP_Vendor.M4T and AP_Vendor1099Payments.M4T files and the data appears correct.

  • 0 in reply to twc

    Change your default 1099 year to 2020 in ap options

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