Welcome to 2020 year-end and all the fun changes for 1099’s! This year, the IRS has released a new 1099NEC form that is required for 2020 tax reporting for Non-Employee Compensation (NEC). NEC information was previously reported in Box 7 on the 1099-MISC form, so a whole new form is required this year. To accommodate this, Microsoft has made the following changes: The Tax Type of Non-employee Compensation has been added to the Vendor Maintenance\Options window. You can view NEC 1099 details from the 1099 Details Inquiry window. Non-employee Compensation is a selection option when printing 1099s. The easiest way to update vendors for this new tax type is to use the Update 1099 option under Purchasing\Utilities. This will let you mass change tax type and update transactions as well. Please keep in mind that Box 7 on the 1099-MISC is now used for something else so make sure [...]
On January 8, one of our Njevity team members, Paige Horne, discovered an issue with the tax tables for the new W-4 Higher Withholding filing statuses. In the current release, the Standard Deduction is reducing the taxable wages before the tax tables are applied for the Higher Withholding filing statuses. The Standard Deduction is actually already factored into the tax tables, so no further deductions should be needed. Currently, Federal withholding is calculating much lower for those filing statuses due to the lower taxable wages. We have reached out to Microsoft who confirmed with the IRS that a changed needs to be made. In the meantime, Microsoft has sent us a script to fix this issue, and the new tables will be fixed on the site tomorrow. After the fix, the Standard Deduction step will be removed and taxable wages will be accurate when the tax tables are applied. We [...]
Need to close our Year End in Dynamics GP for 2019? If you missed our End-of-Year Webinar and the details about how to successfully close out 2019, don't worry! We have it recorded and available for you. Watch the webcast here in the Ask the Experts dropdown of the Events page. And don't forget the Year End Checklist. Looking to move to the cloud in 2019?