How do I Access 1099-NEC Form Files for Use with Sage 50 Checks & Forms?

It is important for businesses to stay on top of their taxes. This includes filing 1099-NEC forms, which are used to report payments made to contractors and others who provide services during the year. While many companies have access to software that can help with filing these forms, there may be times when the data must be exported into a file that is compatible with Sage Checks & Forms. In this blog post, we will discuss how to Access 1099-NEC Form Files for Use with Sage 50 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.

Read More : Where is Accounts Payable in Sage 50 2015 for 1099 Correction

Why is it important to Print the New 1099-NEC in Sage 50?

Most Sage users might be aware of the fact that the Compensation made to a non-employee is reported using the 1099-NEC form. The reporting of payments made to non-employees will no longer be included within Form 1099-MISC as of 2020. This is according to the IRS, which also has revamped the form. The 1099-NEC has undergone further revisions for 2021.

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

Form Alignment

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.

Various Methods to Printing the New 1099-NEC in Sage 50

Here are the two different methods related to printing the new 1099-NEC in Sage 50:

Method 1: In Case of the Payroll Subscribers- 4-Part Blank Perforated form or eFile

Note: The 1099 and 1096 forms will not be accessible for printing from the Forms menu within Sage 50 as of the 2023.0 release. Nevertheless everyone who has an active plan will be able to make use of Aatrix inorder to print 1099/1096 paperwork. An Aatrix eFile subscription or manual filing with the IRS are necessary for efiling. Also the Customers using Sage 50 Documents can still print 1099/1096 forms in case they are using release 2022 or earlier.

On December 16, 2020, the 1099-NEC Form has been made available to all the clients with payroll subscriptions through an Aatrix forms update.For this you need to go to the Reports & Forms >>> click on Forms >>>Next click on Tax Forms, after that double-click Payroll Tax Forms in order to view the most current tax forms. This will load the most latest forms for you and automatically be able to install any Aatrix tax forms that are lacking.

The user needs to be utilizing at least the 2021.1.1 or ideally 2022.1 release and have the most latest tax update loaded in order for the data to instantly appear on the 1099-NEC form.

Steps to Print e-file the 1099-NEC/1096 Forms using Aatrix Forms:

• Start by navigating to the Reports & Forms >>> Next click on Forms >>> Now click on Tax Forms and double-click Payroll Tax Forms located at the bottom in order to print or electronically file the 1099-NEC/1096 forms using Aatrix Forms
• Next, go to the list of Available Forms, and select the required 1099 form (1096 forms are also generated as section of the 1099 filing)
• Now select the appropriate filing year
• Once done, you need to click on the Ok option.
• Finally Complete the form by following the instructions and entering any required data.

Method 2: For all Customers – Print to 3-Part Red Copy or IRS Scannable Forms

Important Note: The 1099 and 1096 forms will not be accessible for printing from the Forms menu within the Sage 50 after the release of 2023.0. Nevertheless, through Aatrix, any clients with an active plan will be able to produce 1099/1096 forms. The IRS should receive a manual filing or an electronic filing through Aatrix. Also the Customers running releases 2022 and earlier can still print 1099/1096 forms by using the Sage 50 Forms menu.

One can print the 1099 and 1096 forms through Sage instead of Aatrix in case they do not own a payroll tax subscription.

In order to Print the 1099 and 1096 Forms using the Sage 50

• Start by Selecting Forms, Tax Forms and Reports & Forms
• Now click select the 1099-NEC or 1096 form that you need.
• Next select the reporting year
• Vendors can be filtered using ID, active/inactive status, or payment method
• In order to obtain a preview of the printers, click on the “Refresh List” option
• The 1099 forms can be printed by selecting Print/E-mail or by selecting Print Preview inorder to see a screen preview of them.

Also Read : How to Print 1096/1099 Forms in Sage 50

Conclusion

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 .

Frequently Asked Questions (FAQs)