The deadline to distribute form 1099 is February 21st, 2021. PeopleSoft users and organizations need to be aware of the changes to the 2020 1099 tax form. Having an understanding of these key differences is essential to avoid delays in sending out forms to your vendors and independent contractors since the IRS doesn’t offer an extension to the February 21st deadline. There’s still time to gain a thorough understanding of these changes and prepare for how you’ll need to respond as PeopleSoft users and organizations.
The most significant change to form 1099 in 2020 is the decision to breakout NEC (Non-Employee Compensation) from Box 7 of Form 1099-MISC to its own form, 1099-NEC. NEC still includes payments of $600 or more for services of nonemployees and attorneys, but these types of payments will now be reported in Box 1 of the new 2020 form 1099-NEC.
For PeopleSoft users, the updates to the forms need to be reflected in the accounting and reporting systems in order to comply with the new reporting requirement. PeopleSoft Accounts Payable released an Oracle patch (Bug 31114646) to assist you in preparing for the change. The patch includes instructions, new report, new queries, new data mover script, and demo data for use in a testing environment. It is recommended to follow the instructions and make these changes as soon as possible prior to the regular 1099 Update patch release. For further information regarding Bug 31114646, access the FAQ document for 1099 Update for 2020 here (Doc ID 2723375.1). Reach out to Elire’s PeopleSoft Practice Lead Jeff Hilliard ([email protected]) for questions, inquiries, or to find out more about our PeopleSoft support options.