How do I access 1099-NEC form files for use with Sage Checks & Forms?
You may have probably heard that instead of the 1099-MISC, non-employee compensation must now be recorded on 1099-NEC form file. However, other forms of payments like rents, dividends, attorney fees, etc continue to be reported on the 1099-MISC, but non-employee compensation (payments to contractors) now has its own form, the 1099-NEC.
The most of the Sage users’ concerns is “How do I access 1099-NEC form files for use with Sage Checks & Forms”. Don’t worry! The below write-up explains the entire process so that you can make easy access of 1099-NEC forms files. Before you jump to the procedure, let’s know what exactly 1099-NEC form files in detail.
What are 1099-NEC form files?
For tax year 2020, the IRS has separated the registration of compensation to non-employees from Form 1099-MISC and redesigned it. The current Form 1099-NEC which is actually an old form that hasn’t been in use since 1982, it is used to record any compensation paid to nonemployees by a company.
If all four of the following requirements are met, all companies must file a Form 1099-NEC for nonemployee compensation:
- It is addressed to an individual who is not one of your employees.
- It’s designed to be used for services provided in the course of your trade or business.
- It was sent to a single person, a partnership, an estate, or a company.
- The payee received at least $600 in payments over the course of the year.
Solution to access 1099-NEC form files for use with Sage Checks & Forms:
Follow the below instructions to access 1099-NEC form files for use with Sage Checks & Forms:
- First, save the .FRM files to your computer system desktop
- Next, locate the Sage 50 data path
- Now, locate the folder called Forms inside the Sage 50 data path
- After that, copy the downloaded .FRM files from your desktop
- Then paste them in the Forms folder
- Once done with that then open Sage 50 and your company, the forms display in the Tax Forms section of your Sage 50 Forms
- The names of the forms are as below:
- Form 1096 2020 Preprinted
- Form 1099-MISC 2020 Preprinted
- Form 1099-NEC 2020 Preprinted
Because each printer is different, it is recommended that an alignment page be printed before printing to ensure that the data can fit correctly on the type. Print an alignment page in Sage 50 by following the instructions below:
- Open the company files of Sage 50(if you are unable to open company file)
- Select the Reports & Forms >>> Forms >>> Tax Forms
- Select the form which you wish to align (for example 1096 IRS 2020) in the Select a Report or Form window section
- Now, go to the Form designer window and click Print from the top toolbar and then select Print
- Make sure that you have pre printed 1099 form loaded into your printer
- After printing the placeholder info, you’ll be asked whether the form aligned properly or not and you’ll be asked to answer Yes or No
- If you choose “No” that you’ll be presented with alignment options to move the form contact up, down, left or right and then print another sample
- If you select “Yes” then the form alignment will remain as it is.
So, this is all about the 1099-NEC form files and how to access 1099-NEC form files for use with Sage Checks & Forms. With this accessibility, you can file a 1099-NEC form to record any compensation paid to nonemployees by a company. Furthermore, even if the total is less than $600, you must file Form 1099-NEC for those from whom you withheld federal income tax under backup withholding rules for any amount.
If you still have have doubt or want to know more about the 1099-NEC form, then you must connect with our Sage support team through Sage live chat or phone 24×7.
Frequently Asked Questions
Q1. How do I fill out and read form 1099-NEC?
Ans: There are mainly 5 essential parts to form 1099-NEC and they are:
➤ The information of payer
➤ The information of recipient
➤ Nonemployee compensation amount
➤ Federal income tax withheld
➤ State information.
Additionally, name, address, and taxpayer ID are all included in the details provided by both the payer and the receiver. Box 1 contains non employee benefits, which may provide the average compensation for the previous tax year.
Box 4 is where you declare any federal income tax withheld, but this is rare unless you’ve received a backup withholding order for that individual. If your state has an income tax, fill in box 5 with the total amount paid to that individual for the year, as well as any state taxes you withheld.
Q2. Does Form 1099-NEC be electronically filed?
Ans: Yes, Form 1099-NEC can possibly be filed electronically with the IRS.
Q3. How do I print the 1099-NEC on the blank perforated forms using Aatrix?
Ans: Printing the 1099-NEC is very simple, you are just required to follow the below instructions:
➤ First, go to the Reports & Forms >>> Forms >>> Forms >>> Tax Forms
➤ In the list of forms, do a double-click on the Payroll Tax Forms
➤ Once the Payroll Tax Form Selector window opens
➤ Then the next step is to choose the 2020 1099-NEC from the list of federal forms
➤ Select the 2020 for the year then click Ok and then perform the prompts in the wizard.
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