Business Central’s 1099 Form Upgrade

Posted on: January 4, 2021 | By: Josie Mah | Microsoft Dynamics Business Central

The IRS requires one or more versions of the 1099 tax form for payments to vendors. Copies of these forms must be sent to vendors annually on or before the last day of January. On users’ purchase documents, you can specify that the document is 1099 liable, and users can specify the 1099 code for the vendor. Business Central has added new 1099 Form Box codes NEC-01, MISC-14, and a new Vendor 1099 NEC form, all of which are relevant for the reporting year 2020. Before users submit their reporting for 2020, users must first upgrade their Business Central to handle the new requirements by running the action Update Form Boxes on the 1099 Form-Boxes page.

Following the upgrade, users can access the following tax forms from the IRS 1099 Form Box page:

  • Vendor 1099 Div. – Prints the federal form 1099-DIV for dividends and distribution. Users can print all or specific 1099-DIV forms. The report uses the codes that apply to the DIV form amount boxes from the IRS 1099 Form-Box page.
  • Vendor 1099 Int. – Prints the federal form 1099-INT for interest income. You can print all or specific 1099-INT forms. The report uses the codes that apply to the INT form amount boxes from the IRS 1099 Form-Box page.
  • Vendor 1099 Misc. – Miscellaneous income – Prints the federal form 1099-MISC for miscellaneous income. You can print all or specific 1099-MISC forms. The report uses the codes that apply to the MISC form amount boxes from the IRS 1099 Form-Box page.
  • Vendor 1099 NEC (Non-employee compensation) – Prints the federal form 1099-NEC for nonemployee compensation. You can print all or specific 1099-NEC forms. The report uses the codes that apply to the NEC form amount boxes from the IRS 1099 Form-Box page.

The Vendor 1099 Magnetic report, which specifies the 1099 forms that can be exported, can be used to submit 1099 tax forms electronically. The form information exported by the Vendor 1099 Magnetic report is identical to that of the reports described above. The Vendor 1099 Magnetic report uses the codes that apply to the form amount boxes from the IRS 1099 Form-Box page. Because codes are mapped to the form boxes in the file layouts, the table data and report version for a particular tax year must agree. If any custom codes are added to the table, these must be mapped to the form boxes inside this object.

Regulatory changes affecting this report and the table data are generally handled in end-of-year updates. Therefore, it may be helpful to run the Vendor 1099 Information report to review the data before printing the forms.

Next steps

Logan Consulting has helped many businesses transform their business using Microsoft Dynamics 365 Business Central. If you have any questions about Business Central’s 1099 forms or want to find out how Logan Consulting can help you optimize your business, contact us today.



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