What is Form 1099-NEC?
But according to the IRS, in order to help clarify the various filing deadlines for different types of payments that could be included on Form 1099-MISC, they decided to reintroduce Form 1099-NEC specifically for nonemployee compensation which has a single filing deadline.
See Also: New 1099-NEC features released in Sage 100 Version 2021
IRS instructions explain that you must report nonemployee compensation payments on 1099-NEC that meet the following four conditions:
1. The payment is made to someone who is not your employee
2. The payment is made for services in the course of your trade or business
3. The payment is made to an individual, partnership, estate, or corporation
4. The payment total is at least $600 for the year
Managing 1099-NEC in Sage 100
More guidance on using the utility
The ability to report 1099-NEC changes was released in Sage 100 Versions 2020.1, 2019.4, and 2018.10. This provided the code to map to the Aatrix Reporting application.
Finally, the ability to print and submit forms electronically will be released by Aatrix in their Year-End product update which is typically released in mid-December. Until that time, you may receive error messages when attempting to print 1099-NEC for year 2020.
Refer to this Sage Support Knowledgebase article for full details and additional resources.
See Also: Sage 100 Tips & Tricks