Dale Wade | Manager, JDE Support Services
Have you ever heard the get-down-to-work phrase “it’s time to make the donuts”? In the software support business, we experience something very close to that when it comes to delivering our year-end updates. Some years, the IRS is “kind,” which means we have minimal changes. However, there are other years – like 2020 – where several critical changes (including the new Nonemployee Compensation form we had to create) affected most of our customers.
Well, 2021 is shaping up to be another 2020. “It’s time to make the year-end updates.”
Based on information we’ve seen so far from the IRS, it will be another big year that will require changes to your JDE World or EnterpriseOne 1099 processing. Although we don’t see many, if any, changes thus far for Human Capital Management (HCM) departments, your accounts payable department will need to get ready. Spinnaker Support is gearing up for another big year of 1099 changes for 2021.
2021 Form Changes We Know About
NOTE: Keep in mind, form or alignment changes make it necessary for program changes to print the data in the correct format whether you use a new box or not.
1099-MISC Form Changes
- The form name changed from Miscellaneous Income to Miscellaneous Information.
- New Box 11 (Fish purchased for resale).
1099-NEC Form Changes
- The form layout has changed to a more condensed layout changing the alignment through the entire form.
- New Box 2 (Checkbox if Payer made direct sales totaling $5 000 or more of consumer products to recipient for resale).
1099-DIV Form Changes
- New Box 2e (Section 897 ordinary dividends).
- New Box 2f (Section 897 capital gain).
- With the above two new boxes, the alignment will have to change for boxes 2c and 2d.
1099-INT Form Changes
- None reported at this time
What about the Electronic File?
Since we know there are 1099 form changes, we also know there will be changes to the electronic file. The IRS has not published the electronic file changes yet, but we are expecting them in the very near future. Our Global Tax and Regulatory Compliance team keeps a watchful eye for when the specifications have been released.
Once released, we move to the planning phase to establish requirements for our customers. We personalize the year-end tax process for each customer, delivering precise updates that meet your requirements before you need them, regardless of product version.
We’re Here to Help
After the big year we had in 2020 with 1099 changes, we’re gearing up for another intense year of change for 2021. Keep an eye out for more details via email and in our blog.
If you’re not already a Spinnaker Support Tax and Regulatory update customer and are interested in getting the required 2021 updates for your JD Edwards software, give us a call. We’d be happy to help.