We are getting to the end of 2020 and it's time for our annual newsletter.
This year, there are major changes to the 1099 filing process which will now break out non-employee compensation, which used to be recorded in (box 7) on a new separate form called 1099 NEC. Non-employee compensation of 600.00 or more will be now recorded in box 1 of this form.
All other miscellaneous income will be on a second form 1099 MISC. This form is the same as last year with the IRS re-arranging a few boxes. Boxes for Rents, Royalties and other income remain the same. Click for form
Please note, we are only supporting Laser forms this year. Please contact the helpdesk for installation instructions for 1099 filing.
The deadlines for filing W-2s remain the same as last year.
It is important to note that e-filed Form 1099-NEC will not be forwarded to states.
In September, the IRS released its annual Publication 1220, which revealed that the 1099-NEC will not be included in the IRS 1099 Combined Federal/State Filing Program (CF/SF).
Under the CF/SF Program, the IRS forwards data from a number of key forms to the appropriate states, but it will not do so for Form 1099-NEC. As a result, businesses could miss key state filing deadlines, leading to unexpected penalties. This means 1099-NEC filers will need to file states manually.
For year end, we have some sample knowledge base entries that you may find helpful and have added our holiday schedule for 2021.
And lastly, we have included 2021 Federal Wage Limits and 2021 Retirement Plan Contribution limits as well as the 2021 FOI holiday schedule.
Wishing you peace and good health in the New Year.