1099-NEC PROCESSING IN SAGE 100

1099-NEC PROCESSING IN SAGE 100

This year, the IRS reintroduced Form 1099-NEC as the way to report nonemployee compensation, moving away from Form 1099-MISC as traditionally had been used. Let’s take a look at this new requirement and more importantly, how to record and report 1099-NEC information in Sage 100.

What is Form 1099-NEC?

Before it’s reintroduction this year, Form 1099-NEC was actually an old form that hadn’t been in use since 1982. For decades now, businesses have filed Form 1099-MISC to report nonemployee compensation (i.e. payments to independent contractors). 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.

Year End 2020

 

 

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