The IRS has released a new form 1099-NEC (non-employee compensation) which replaces using Box 7 of the 1099-MISC form from prior years. All non-employee compensation will go to Box 1, with any federal income tax withheld by the payer going in Box 4.
The 1099-NEC timeline
Form 1099-NEC is due on January 31 each year, while all other forms of income from the 1099-MISC are due on March 31.
Microsoft Dynamics GP versions 2016 and later will support the new IRS format.
- The annual year-end update for 2020 will include the new form. Traditionally this update releases in mid-November, just before Thanksgiving.
- Clients on version GP 2016 or later and on a current enhancement plan are eligible to receive the updated code. Please reach out to your RSM contact if you will require assistance with installing the update. If you don’t know who to contact directly, email us at mailto:email@example.com
- Clients on GP 2015 or earlier should contact us to discuss your options.
There will likely be steps for clients to take once the annual year-end service pack is installed. RSM anticipates the following steps will need to be taken before issuing 1099 forms for 2020.
- Update vendor cards to reflect the new form and box number. RSM can assist with making updates via SQL scripts if you have a high volume of changes.
- Run a 1099 utility to update transaction data for 2020 to the new form and box number.
In December, RSM will cover the new form and the changes needed in a special year-end webcast related to 1099 processing.
The Microsoft Dynamics GP October release
The Microsoft Dynamics GP October 2020 release, which became available on Monday, October 5, 2020, also addresses a quality issue with Dynamics GP affecting Word Templates. This Dynamics GP issue related to emailing and printing Dynamics GP word templates was introduced via a Microsoft Office Security Update around the beginning of September 2020.
If you are experiencing the issue described below or have experienced this issue and applied one of the published workarounds, Dynamics GP 18.3 contains the hotfix for this issue. Microsoft will also release a hotfix in the coming weeks for Dynamics GP 2016. Dynamics GP 2015 and lower environments will not receive a hotfix to address this problem and will require a full upgrade.
The issue with Dynamics GP: when a word template is opened from Dynamics GP or in an email sent from Dynamics GP, the following error may be received.
More details on the issue can be found in this blog post from the Dynamics Community. The Microsoft Office update that caused this issue with Dynamics GP is a security update and should not be avoided long-term. Therefore, it is recommended to upgrade Dynamics GP to the latest version with the hotfix released this month.
Please reach out to your RSM consultant directly or to our help desk at firstname.lastname@example.org if you have any questions about any topics covered in today’s blog, such as being included in our webinar invitation, help scheduling assistance with installing the year-end update, or assistance with vendor and transaction updates that may be required.