As our clients can tell you, we're all about built-in compliance when it comes to SYMPAQ software. The first thought that may come to mind is, of course, DCAA compliance in conjunction with the Federal Acquisition Regulations. However, there is more to the compliance equation than an accounting system that addresses the various DCAA audit and FAR requirements.
Not to be overlooked is compliance with the Internal Revenue Service tax forms that are generated on a quarterly or annual basis for reporting compensation and withholding information. Starting this year, there is a new twist to the Accounts Payable Form 1099 and that is the 1099-NEC where "NEC" stands for Nonemployee Compensation. This information was previously located in Box 7 of the 1099-MISC (stands for "miscellaneous").
As it turns out, in recent years 70% of all 1099-MISC reporting to the IRS was for nonemployee compensation and therefore a new form has been created to report these amounts, and only these amounts. With the SYMPAQ End-of-Year update, we have added the 2020 1099-NEC while updating the 1099-MISC for the 30% of all other payments made to various miscellaneous categories, including rent, royalties and other income. Each and every year, we make it a priority to provide our users with the latest Accounts Payable and Payroll tax forms for annual reporting purposes. We have a long standing partnership with NELCO Solutions to not only provide a resource for ordering paper forms, but also to automatically generate the forms themselves directly from SYMPAQ through the seamless integration of the NELCO forms engine. This enables the creation of the forms on blank perforated paper stock by drawing and populating the various boxes with corresponding dollar amounts.
That said, the IRS still requires the red "Copy A" for 1099's and for Form 1096 when mailing 250 or fewer forms. It is required by law when filing 250 or more forms to file electronically. With SYMPAQ, we provide our clients with electronic filing capability through the integration of a third-party software add-on.
To close, while DCAA compliance through automation is the overarching goal, IRS tax form compliance is front and center as each year draws to a close and a new filing season begins. The upcoming deadline for issuing your 1099-NEC forms to your eligible consultants and for filing with the IRS is February 1, 2021.
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In this one half hour webinar recording, you will learn when you should use the 1099-NEC instead of the 1099-MISC, the changes to the latest forms (1096/W2/W3) for tax year 2020 and gain an understanding about the compliance aspects of filing. Our special guest presenter is Jason Jenison of NELCO Solutions.  |
