The IRS has introduced some changes to the 1099-MISC and the 1099-NEC filings for the 2021 reporting year. Sage has released a hotfix to accommodate all of these changes to the 1099-MISC and the 1099-NEC forms. This hotfix is only available for the supported versions of Sage, and these versions need to be updated to the latest product update.
- Version 2022 – Product update 1
- Version 2021 – Product update 4
- Version 2020 – Product update 7
- Version 2019 – Product update 8 (technically, this is not a supported version, but Sage has made the 1099 hotfix available for this version as well)
For the 1099-MISC form, the most obvious difference is the title. Miscellaneous Income has been changed to Miscellaneous Information. Additionally, Box 11 now includes any reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes. This means that box 1 of the 1099-NEC form will no longer be used for reporting under section 6050R. Also, payers may use box 2 on the 1099-NEC or box 7 on the 1099-MISC forms to report any sales totaling $5,000 or more of consumer products for resale. But perhaps the biggest change of all is the resizing of the 1099-NEC form. The height of the form has been reduced in order to fit 3 (instead of 2) forms on an 8 ½ x 11 page.
How to Check Your Sage 300 Version
Check your version by opening Sage and click on Help About Sage 300 System Information. Your version and product update number will be shown on this screen.
The hotfix consists of 5 program files, and 3 report files that need to be placed in the APxxA directory on each machine where Sage is installed. Once this is done, you are ready to print your 1099s.
- Go to AP Vendor Reports Print 1099/1096 Forms.
- Select the Form 1099 and then enter the tax year 2021.
- When you enter the Form Type 1099-NEC, Sage automatically populates the Use Form field to be AP 1099NEC-2021.RPT. This is the new specification file that works with the new IRS format.
- When you change the Form Type to 1099-MISC the Use Form field updates to the new AP 1099MISC-2021.RPT form. (These 2021 forms are part of the hotfix package).
- Ensure the Tax Number field is filled in correctly, and then print the forms. You can see the forms in on the screen, before printing to a printer, if your print destination is set to Preview.
Unsupported Sage 300 Version?
What happens if you are not on one of the supported versions of Sage 300 and your version is not eligible for the hotfix? You have the option to do your 1099 forms manually, however, this may be an enormous amount of work. The best option may be to export the 1099 information and use a third-party service for your filings.
- Go to AP Vendors 1099/CPRS Inquiry. Click on File in the top left corner of the screen, and then Export
- Select the Single CSV File type
- Browse to the location where you want to save your file and give it a filename
- Then click on Set Criteria
- Find the field Year in the drop-down list
- Click Add
- Click in the white box next to Criteria
- Set the year to be 2021
- Click OK to set the year, and OK on the Set Criteria screen, and then OK again to start the data export
When the export process is complete, locate your file and send it to your third-party service.
For any questions or assistance with any of the above steps, please contact Equation Technologies – we can help!