We interrupt your summer for a look at 2022 1099s

5 minute read time.

I know it is only August and I’m bringing up 1099s. It’s still summer and you don’t want to be reminded that year-end is just around the corner. But hey come on, we have to start thinking about year-end sometime. So, let’s ease into it with a quick preview of what to expect for 2022 1099s.

We won’t see the actual Sage X3 1099 updates for 2022 until mid or late December. Why? We can’t finish the updates until all the governmental changes are completed for the tax year. (See Additional Information section below on how to be notified when the updates are available)

Trivia 

Did you know that there are over 20 different types of 1099s?

Sage X3 only supports the tracking of 1099-NEC (Nonemployee Compensation), 1099-MISC (Miscellaneous Income), 1099-DIV (Dividends and Distributions) and 1099-INT (Interest Income) and the printing of 1099-NEC and 1099-MISC plus the 1096 forms for NEC and MISC.

What is new for the 2022 1099s supported by X3 so far?

The 2022 1099 update will be included in 2023 R1 (v12p33) plus a cumulative patch will be available for 2019 R5 (v12p20) and above. There no longer are patches or updates for v11 or for lower versions.   For version 12, there will be no 1099 updates for patch level 19 and below. If your version/patch level falls outside the range where updates will be available, please contact your Sage business partner about upgrading or finding an alternative method of reporting your 1099 data.

  • Form 1099-DIV has a new box, 11. The “FATCA filing requirement” checkbox has been assigned box number 11. Subsequently, box numbers 11 through 15 have been renumbered 12 through 16, respectively.
  • Form 1099-MISC new box, 13. The “FATCA filing requirement” checkbox has been assigned box number 13. Subsequently, box numbers 13 through 17 have been renumbered 14 through 18, respectively

For those of you who are wondering what “FATCA” is, it is the Foreign Account Tax Compliance Act. The definition from the IRS website is: “The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, generally requires that foreign financial Institutions and certain other non-financial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on withholdable payments. The HIRE Act also contained legislation requiring U.S. persons to report, depending on the value, their foreign financial accounts and foreign assets.” For more information, go to https://www.irs.gov or check with your tax advisor.

Have you updated Supplier defaults for 1099s?

For my fellow procrastinators, have you changed the default 1099 form and 1099 box values for your Suppliers to reflect the 1099-NEC instead of 1099-MISC? The 1099-NEC was launched in January of calendar year 2020. Have you been manually adjusting the invoices each time you are billed?  Maybe, going back and fixing the Supplier record when it comes up?

How do we know if the default 1099 form and 1099 box have been changed on the Financial tab, under Common data, BPs, Supplier (GESBPS) without pulling up each record individually? We will look at two ways: Advanced selection or customizing the Left list. These two options let you review and update from the same screen.  

Advanced selection

We will start with the Advanced selection option. Click Advanced selection in the right box.

We’ll set the selection where all the 1099 form Values = MISC. Plus, we’ll save it as a Memo so that we can Recall it later. Note: we can select None for Values to find suppliers that haven’t been assigned a form.

The Memo is named "1099-misc" and it is marked as Global so that it is available for anyone to use. Note, if we search for this either under Memo or Recall, we’ll have to select Global to find it in the drop-down menu. If we don’t select Global, only our personal memos will be available. If we name the Memo "STD", every time we open the function that Memo will be recalled automatically.

Once you select OK, on the Object selection screen, you’ll return to Supplier where the Left list just displays those where Form 1099 = MISC. Note in the Selection box, 1099-misc is now a reusable option.

Left list

Another option is to add the 1099 form and 1099 box values to the Left list. Remember, as with all customizations, try this on your test environment before applying in production. If you don’t feel comfortable adding these fields, please contact your Sage Business partner for assistance.

Head to Development, Script dictionary, Window management (GESAWI) and select Window OBPS. From there, go to the Browser tab and Jump to (via the Actions icon on the line to the right of the Object) the BPS Object.

In Basic Objects (GESAOB), we are going to add to the Selection screen grid: Table BPSUPPLIER/Field FRM1099 and Table BPSUPPLIER/Field BOX1099. Save and Validate.

Exit the Basic Object and return to the Windows management. Save and Validate.

Back to Suppliers. We have a Left list that includes values for 1099 Form and 1099 box. You can easily review which suppliers still have MISC for the 1099 form or those with None selected.

Blast from the past

These two approaches are like the ones for finding the Supplier doc no. on invoices that we went over in my blog: When a supplier calls… 

The Left list and Advanced selection methods are handy tips to keep in mind for quick and easy reviews in other functions too.

Additional information

  • See Sage knowledgebase article 18346 1099 FAQ for additional 1099 information. This article is updated as information becomes available.
  • To be notified of releases like the 1099 updates, patches and other important announcements, be sure to subscribe to the Forum Sage X3 Announcements, News and Alerts  Just click on Turn Forum notifications on.
  • So you don’t miss any blogs like this one, go to  Sage X3 Support Blogs . Click on Turn Blog notifications on.  (Be sure to Like the blog on your way out!)

Now, you may return to your regularly scheduled summer!

Take care my X3 friends. Stay safe!