1099 Forms for 2021

Overview

Accounting Seed provides the ability to create a 1099 export file to export your data from Accounting Seed. The data in this file can be imported into a 1099 printing service for sending 1099 forms to your Vendors. The two IRS forms supported in Accounting Seed include: 1099-MISC and 1099-NEC.

For 2021, the IRS did not make any changes to Form 1099-NEC. However, in January, 2022 the IRS updated Form 1099-MISC as follows:

A new Box 11 was added in 2021 for “Fish purchased for resale”
A new checkbox was added for “FATCA filing requirements,” which incremented the subsequent Box numbers by 1, starting with Box 14

The updated Box numbers on the 2021 Form 1099-MISC are as follows:

11 Fish purchased for resale (new for 2021)
14 Excess golden parachute payments (this was Box 13 in 2020)
15 Nonqualified deferred compensation (this was Box 14 in 2020)
16 State tax withheld (this was Box 15 in 2020)
18 State income (this was Box 17 in 2020)

The information below will help you determine what actions are needed to allow you to file Forms 1099-MISC and 1099-NEC for the 2021 tax year.

1099-MISC

The Magnolia - Home release will include the 2021 changes to 1099-MISC. A new “Default Form 1099 Type” will be added, “Eff:2021 - 1099 - MISC” along with the relevant Default Form 1099 Boxes. However, since these changes were made so late in the year, due to review requirements from Salesforce, we are unable to make the required changes and release them in time for you to meet the January 31 deadline.

If you are required to file Form 1099-MISC for your Vendors and you are not impacted by the updated Box numbers listed above, you may not need to make any changes to your data in Accounting Seed. Assuming you have configured your 1099-MISC Vendors with a Default Form 1099 Type of “Eff:2020 - 1099 - MISC” along with the appropriate Box number, you can navigate to the Cash Disbursement list view, and click Create 1099 File. The 1099 file will be emailed to you for uploading into your 1099 printing application. For more information, please refer to the Create a 1099 Export File knowledge article.

If you are required to file Form 1099-MISC for your Vendors and you are impacted by the updated Box numbers above, we recommend you do the following:

Navigate to the Cash Disbursement list view.
Click Create 1099 File.
When you receive the 1099 file that is emailed to you, edit this csv file to make the appropriate changes to the Box numbers before importing it into your 1099 printing application.

Before creating your 1099 file for 2021 Vendor Payments, we recommend that you review the 1099 Information section on your Vendor Account records to make sure it is correct. To review this information, we suggest you create a list view on Accounts for your 1099-MISC Vendors. Below is an example:

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This 1099-MISC Vendors list view can be filtered as follows:

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You can then review the 1099 information along with the addresses to ensure the data is correct.

If any of this information needs to be updated, refer to the Update 1099 Information on an Account or Contact or the Update 1099 Information on Multiple Accounts or Contacts article.

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1099-NEC

There were no changes to Form 1099-NEC for the 2021 tax year. This means, if you are required to file Form 1099-NECs to your Vendors and your Vendor Account records have been configured with the appropriate 1099 information, you may not have to make any changes to your data in Accounting Seed. Simply navigate to the Cash Disbursement list view, and click Create 1099 File. The 1099 file will be emailed to you for uploading into your 1099 printing application. For more information, please refer to the Create a 1099 Export File knowledge article.

Note: Click here to view the above image in full screen.

This 1099-NEC Vendors list view can be filtered as follows:

Note: Click here to view the above image in full screen.

You can then review the 1099 information along with the address to ensure the data is correct.

If any of this information needs to be updated, refer to the Update 1099 Information on an Account or Contact or the Update 1099 Information on Multiple Accounts or Contacts article.

Review and Update Cash Disbursements (if necessary)

Updates to Cash Disbursement records may be needed if you updated your 1099 Vendor records, but the updates were made after you created one or more Cash Disbursements in 2021. In this case, even though the Vendor Account records are now correct, when the Cash Disbursements were created, the 1099 data that was defaulted from the Account record into the Cash Disbursement record was incorrect.

We suggest you create a list view on Cash Disbursements for your 1099 Vendors. Below is an example:

Note: Click here to view the above image in full screen.