New Enhancement Released In December 2020
You now have access to an essential update for creating 1099s this January.
Updates For New IRS 1099 Forms
The IRS made significant changes to 1099 reporting, beginning with the 2020 tax year. The new 1099-NEC form will now be used for reporting nonemployee compensation (NEC) payments. Previously, this was noted as a box on the 1099-MISC form. If you issue 1099s to your eligible vendors, Aplos has been updated to reflect the new IRS guidelines so you can create both the 1099-MISC and 1099-NEC based on eligible expenses. These can be created in the Form 1099 Report under Extra Actions.
Starting with the 2020 tax year, the IRS has two 1099 expense categories that will be reported on the 1099-NEC form: Nonemployee Compensation – NEC and a new category for Federal Tax Withheld – NEC. If you have eligible expenses for federal tax withheld for nonemployees, you need to change the 1099 tag mapping from the Federal Tax Withheld tag to the new Federal Tax Withheld – NEC tag to ensure it populates on the correct 1099-NEC form. Expense accounts tagged with the old Nonemployee Compensation tag have automatically been transferred to the new Nonemployee Compensation – NEC category.