Implemented starting in 2022 in the Vendors Master file is the ability of setting different 1099 Type and 1099 Payment or Deductions values per calendar year.
The new 1099-NEC Nonemployee Compensation form for 2020 and 2021 was also added.
The values to select from in the calendar year 2020 will not include the new 1099-NEC Nonemployee Compensation but BIS will use this new form when the settings for the Vendor are “1” for the 1099 Type (Miscellaneous) and “7” for the 1099 Payment or Deduction (Nonemployee Compensation).
See example below:
The values to select from in the calendar year 2021 will include the new form 1099-NEC Nonemployee Compensation.
Starting with the year 2021 BIS will automatically create the new 1099 classifications and vendors with a 1099 classification 1 – 7 will be changed automatically to the new 1099 classification 4 – 1, as the example above.
If the year 2022 is created in a company before the 2022 1099 Classifications are integrated in BIS, classifications for the previous years will be used.
New 1099 classifications will be integrated into BIS as soon as the government release them every year.
Vendor Invoices, Vendor Checks and Vendor Payments by Credit Card
The default 1099 values used in the three updated transactions are still coming from the Vendors Master file but now are selected based on the year of the transaction date.
The only exception to this rule will be the Recurring AP entries, and for this type of entries the BIS login date will be used.
The ability to individually select a different 1099 Type or a different 1099 Payment or Deduction per transaction remains unchanged.
Report: 1099 Forms
Starting with the year 2020 the report 1099 Forms will allow the selection of the new 1099-NEC Nonemployee Compensation. For years prior to the year 2020, the option to select the new 1099-NEC Nonemployee Compensation will be disabled.
