Many of my clients started early with their GP 2016 & 2018 Year-End updates to get all the new rules from IRS around the 1099 forms filling applied to their GP instance. And this is a time-sensitive issue, as those fillings are expected by the IRS by January 31st every year. The major change this year by the IRS was to make the 1099-NEC (Non-Employee Compensation) a separate form again (as it used to be in the early 80’s) from the 1099-MISC form. This means that you’ll have to purchase pre-printed forms for either one or both of the formats, depending on how your vendors are setup. It is critical that the YE-update is applied for GP 2016 & 2018, as it’s the only way to get your Vendors 1099’s printed out on the correct form (based on the 1099-type).
Unfortunately, as it happens almost every year, Microsoft had to release a January Hot-Fix for GP as the November release sometimes reveals bugs that are discovered throughout the month of December when the bulk of updates take place.
This year’s January Hot-fix includes a lot of small changes and some of them affecting the 1099 reports directly, so you better get that applied NOW! See Terry Heley’s blog post on the Microsoft Community support site: https://community.dynamics.com/gp/b/dynamicsgp/posts/microsoft-dynamics-gp-january-2021-hotfix-now-available
For your references, here is another blog post from Andrea Melroe going back in December, explaining all the new changes made to the 1099 filling for this year, and that were part of the November release: https://community.dynamics.com/gp/b/dynamicsgp/posts/microsoft-dynamics-gp-year-end-update-2020-payables-management-new-1099-nec
Next to the January Hotfix, Microsoft also released the US Payroll Round 2 tax updates, as there were some last minute adjustments for some states. The link below is on Customer Source, so you might need to login with your customer account to get the full details. https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/TUGP2018
A quick overview below of the states that have Tax changes and a link to the full Round 2 changes on the Microsoft Docs site.
Don’t delay your GP Year-End update, as this is the last stretch to get it done right.. only 4 days left (Unfortunately the 31st is a Sunday today, and most post offices will be closed).
Hope that you enjoyed reading this and until next post, wish you a happy life.
Leave a Reply