1099 Changes for Tax Year 2020 – NEC and MISC
For our US customers:
Tax Year 2020 has a major change for 1099 processing with the reintroduction of the NEC 1099 form that was last seen in the 1980s. The NEC 1099 form replaces the old Box 7 for NonEmployee Compensation (NEC) on the 1099 MISC form.
If your vendors have non-employee compensation type keys assigned to them, then their 1099 NEC form will generate correctly without having to change vendor, voucher or payment information. In other words, you should not have to change an vendor or voucher due to this change.
SBT Executive Series uses a set of 1099 keys which are then mapped to the appropriate 1099 forms and boxes. For any given tax year, an Executive Series key may have a different form type and box associated with it. The 1099 information screen (AP|Vendor Setup|1099 Information) has this information. As long as your vendors and vouchers have the correct keys assigned to them, you should (usually) not have to update vendors in order to comply with these sorts of changes. The only real difference this year is the extra 1099 NEC form that you may have to print.