1099-NEC Non-Employee Compensation

Contents

• 1099-NEC Introduction
• Changes to Connected for the 1099-NEC
• Supported Versions:
• Resources

NOTE: Connected 11.1, or greater, contains all changes listed below. Earlier versions will not contain all necessary changes.

1099-NEC Introduction

The 1099-NEC (Non-Employment Compensation) form was introduced in the 2020 tax year. 1099-NEC is a form that solely reports non-employee compensation and is NOT a replacement for the 1099-MISC. Form 1099-NEC is only replacing the use of Form 1099-MISC for reporting independent contractor payments.

Since its creation in 2020, there have been multiple other changes required to support the new form.  Additionally, enhancements have been made to help with electronic filing.

Changes to Connected for the 1099-NEC

The following changes have been made to Connected to support 1099-NEC form printing and/or electronic filing requirements.

1) Vendors Window updated with a "Box" pulldown menu for 1099 selection.  All vendors that had Box 7 previously selected will have the value automatically transferred to "1099 NEC Box 1"

2) Payments Ledger has "1099 Vendor Yes/No" and "1099 Box" added to the field picker.  See using ledger and query windows, for more information.

3) 1099 Report window is updated to modern report interface, including report notes.

4) 1099 Report supports a flattened export (spreadsheet/text file) with all 1099 information to assist with electronic filing.

5) 1099 Report supports My Reports output. My Reports keeps saved versions of reports and has drill down to source.

6) 1099 Report window has option to select either the 1099 Misc or 1099-NEC form.

7) 1099 Form (A/P Forms) supports both 1099 Misc and the 1099-NEC formats.

8) 1099 Form (A/P Forms) supports "Payment Year" field. Learn more about customizing forms.

Supported Versions:

Connected 11.1 or greater.  Click to request the latest Connected software update.

Resources:

https://www.irs.gov/forms-pubs/about-form-1099-nec