Microsoft Dynamics GP Fall 2020 - Non-Employee Compensation (NEC) for 1099 form

The IRS is releasing a new 1099 NEC form for the 2020 tax year. Non-Employee Compensation, which had been included in the 1099 MISC form, has been moved to its own form.

In the Vendor Card in Options, you now have the option of selecting Non-employee Compensation as a 1099 tax type. The Utility "Update 1099 Information" also includes selecting Non-employee Compensation.

To access the Non-employee Compensation tax type, choose Purchasing select Cards and then choose Vendor, once you choose a vendor click Options. In the Tax Type drop down menu, select Non-employee Compensation.

To make a Mass Update go to the Purchasing, choose Utilities and select Update 1099 Information, make the selections in this window for Tax Type From and To.

Note: This feature will be rolled back to Microsoft Dynamics GP 2016 in the 2020 Year-end update.
**This new 1099 NEC was not added to Integration Manager or eConnect**
The new fields were not translated to Spanish or French installs.

If you updated from an existing install of 18.2, February (18.2.1060) or June (18.2.1100) hotfix, you may notice missing data for the 1099-MISC or 1099-NEC.
If so, then run the 1099FIX.sql script to populate this information against each company database in Microsoft SQL Server Management Studio.
This is fixed in the U.S. Year-end Update and no need to run the script.

You can review the 1099 Details from the Purchasing home page under cards click 1099 Details.

To print the form, from the Purchasing home page, choose Routines and Print 1099.

For more documentation on our new features please check out our Microsoft Dynamics GP New Feature Blog Series!

Thank you,

Margi Jandro

Microsoft Support