New 1099-NEC Reporting Requirements for Dynamics GP Users
The IRS announced big changes to reporting non-employee compensation and 1099 forms for the 2020 tax year. The 1099-NEC has moved non-employee compensation (box 7) off of the 1099-MISC to a new form: 1099-NEC. In addition, a few other boxes have moved around.
At Express Information Systems, we have studied your choices regarding the new 1099-NEC for Dynamics GP and have a list of your best options…
Option One: Upgrade Dynamics GP
As usual, the first option we always recommend is upgrading to Dynamics GP 18.3. The official date for this newest version was October 5th, 2020. If you’re running GP 2015 or older, this could be a great option for you, since extended lifecycle support has elapsed and you will no longer receive year-end updates.
It is also important to note that Dynamics GP 2016 support ends on 07/31/2021. You will receive a Year-End Update for this year, however, will not receive a Year-End Update next year.
Option Two: Year-End Update
If you are running GP 2016 or GP 2018, the best option for you will be to apply the annual year-end update. This releases in late November, and will automatically include the updates to the new 1099-MISC and 1099-NEC forms.
Option Three: Purchase Greenshades Software
Greenshades is a trusted ISV partner of Express Information Systems. We have worked with and recommended them for many years. If you chose, you can work directly with Greenshades to file electronically or have them send out the 1099s for you. They will ensure you’re compliant with the new standards.
With that in mind… your next step, no matter which version you’re on is to reach out to Express Information Systems. We will be able to discuss all the options with you, talk pricing and timelines, and decide together what the best course of action is. As always, we are happy to help!