As you may be aware, in 2020, the IRS has made a form change for 1099-MISC. Non-employee compensation will now be recorded in box 1 on form 1099-NEC instead of 1099-MISC box 7. The form 1099 has also been redesigned.
As a cloud based solution that provides regular updates, Sage Intacct will push to its users the necessary revision. Sage Intacct is preparing for these changes in release R4, scheduled for November 13, 2020.
If you are using Sage Intacct, you need to make sure that prior to this release, you update all vendors that are currently using 1099-MISC box 7.
You will also need to change all previous transactions for 2020 for any vendor using 1099 MISC, box 7. This can be done two ways. When you change the 1099 type and box, you will be prompted to update all transactions for the vendor. This will modify the current and prior year 1099 transactions to use the new 1099 information. You can also use an import template for the Vendor 1099 Transaction Update which can modify multiple vendors at once.
If you are a current client, the link below will take you to the Sage Intacct community with details regarding this change. We recommend you pay close attention to the steps, and please be careful, as you can end up clearing out data if the instructions are not followed closely.
https://community.intacct.com/community/kA10H000000O180?srPos=1&srKp=ka1&lang=en_US
If you are a current client of Intellitec Solutions and would like our assistance with these changes, please contact us to schedule an appointment with our support team to review the process.
While these changes are significant, taking the steps listed on the community page will ensure that you have the time needed so that the updates will work correctly. And as always, if you have any questions on this or any other support related questions, we are here to help.