Note 2020 1099 Updates: What to do if beginning balances or voucher transactions were coded to 1099-MISC Box 7 instead of 1099-NEC Box 1

The 2020 1099 Updates were released for v11 and v12 only.

  • For those who may have missed the notification in the X3 2020 1099 Update release notes.pdf document, in order to comply with 1099 requirements for tax year 2020, Nonemployee compensation is now reported on 1099-NEC box 1.
  • If existing beginning balance or voucher transactions were previously allocated to 1099-MISC box 7 instead of 1099-NEC box 1; the 1099 generation process will add the 1099-MISC Box 7 amount into 1099-NEC box 1 amount.
  • No additional work or modifications are required to move the amounts so that they print on the 1099-NEC forms.

Important Note: You should not change the Box type for any 1099 forms either in 1099 Box under Declarations, Fee declaration, United States, Setup or via SQL. Changes made to the 1099 box or 1099 form values may result in 1099s/1096s not printing out or having incorrect amounts.

Refer to Sage X3 Support Blog for additional information on the 1099-NEC: Umm...maybe, I forget to start using the 1099-NEC form and boxes…Umm..Help!