This replaces a previously posted discussion regarding the 1099 TY 2021 Stand-Alone Updates to reflect that as with past 1099 Stand-Alone Updates that a given Product Update level is required prior to installing the 1099 Stand-Alone Updates. This usual requirement helps ensure that both client and server portions are installed completely and are in alignment.
All versions will require a product update level that ensures that the TY 2020 updates have been applied. That means that the minimum Product Update level for the 1099 TY 2021 Stand-Alone Updates will be as follows:
- Sage 500 ERP 2018 - January 2021 Product Update (7.90.7)
- Sage 500 ERP 2019 - January 2021 Product Update (8.0.4)
- Sage 500 ERP 2021 - Any Product Update, including the RTM (8.1.0) and beyond. TY 2020 was built into the RTM release.
- If you cannot meet these minimums, contact your partner with source code capability as they may be able to work around the issues. If you are running a currently unsupported version of Sage 500 ERP (2017 and prior), an experienced Sage 500 ERP partner/reseller may be an excellent resource.
These changes will bring four new form fields to Sage 500 ERP:
- 1099-MISC Box 11 (Fish purchased for resale),
- 1099-DIV Box 2e (Section 897 ordinary dividends)
- 1099-DIV Box 2f (Section 897 capital gain)
- 1099-NEC Box 2 (Direct Sales). Note that there is no processing change around this rarely used field, which is the same as 1099-MISC Box 7 as Sage 500 ERP does not calculate this field and if needed, must be manually checked within the Aatrix Preparer.
As these are new fields, there is no data to convert, and should they be necessary for a given vendor, you would need to input that data manually via a beginning balance entry for a simple approach, or manually edit affected vouchers which is a normal process in Sage 500 ERP for new fields.
Keep in mind that these changes are the ones editable by a user. It is sometimes possible that a form changes visually but does not affect Sage 500 directly. For example, a field such as a FATCA field, which is a vendor related field, may move or be copied to another form for a given tax year as specified by the IRS. Sage 500 records that the vendor is a FATCA vendor but would not make changes directly to a form as that type of change is handled by our 1099 processor as they worry about what form it is supposed to show up on in a given tax year and generally does not require a change to Sage 500 ERP itself. Since Sage 500 ERP has not printed 1099 forms directly for several years, no such change is necessary. So if you see a form visually changed for such a field and do not see it listed above, this is expected and the 1099 processor will render the forms appropriately.