Best Practices for JD Edwards Year-End: ESUs Now Available

Are you prepared to meet upcoming year-end processing deadlines? As we approach 2023, it’s time to set up your E1 systems and processes to meet and stay compliant with 1099 and US Payroll reporting requirements.

JDE Accounts Payable includes programs to enable customers to maintain address and tax information for 1099 suppliers, produce 1099 forms using data from the Accounts Payable and/or General Accounting systems, generate reports, adjust amounts for suppliers, manage partial payments, print 1099 forms and produce 1099 returns in electronic formats.

To prepare, JDE customers can download the year-end ESU for the current year using either the Change Assistant tool or the MOS Update Center via http://support.oracle.com.

What’s New

Continuous-Use Form & Instructions: Form 1099-MISC, Form 1099-NEC, Form 1099-G, and these instructions have been converted from an annual revision to continuous use.

New Form 1098-F Filing Requirement:For the threshold amount of $50,000, reporting is required for a suit, order, or agreement that becomes binding on or after January 1, 2022.

Form 1099-MISC: New box 13: The “FACTA filing requirement” checkbox has been assigned box number. Subsequently, box numbers 13 through 17 have been renumbered to new box numbers 14 through 18, respectively.

1099-K: Minimum transaction reporting thresholds have decreased from $20,000 plus 200 transactions in years prior to 2022 to $600 without regard to the number of transactions for years 2022 and after.

1099-DIV: New Box 11: The “FATCA filing requirement” checkbox has been assigned box number 11. Subsequently, box numbers 11 through 15 have been renumbered 12 through 16, respectively.

W2 & W3:

  • Disaster tax relief is available for those affected by recent disasters.
  • Failure to file and failure to furnish penalties, and penalties for intentional disregard of filing and payee statement requirements, have increased due to adjustments for inflation. The higher penalty amounts apply to returns required to be filed after December 31, 2022.

E-File Threshold: the threshold for required electronic filing of most information returns such as 1099s and W2s remains unchanged at 250 or more forms.

Note: form and alignment changes are necessary to be able to print data in the correct format, so it is important to use the latest available forms.

Overview: Year-End Processing Tasks

Before you begin processing data for 1099 forms, assemble the appropriate IRS forms and publications.

  • U.S. Department of the Treasury, IRS Forms and Publications 2022, General Instructions for Forms 1099, 1098, 5498, and W-2G.
  • U.S. Department of the Treasury, IRS Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Electronically.
  • U.S. Department of the Treasury, IRS Form 4419, Application for Filing Information Returns Electronically.

The 1099 form is an income tax reporting form that has several variations including 1099-DIV (dividends & distributions), 1099-INT (interest income), 1099-MISC (miscellaneous income) and 1099-NEC (nonemployee compensation).

To meet the deadlines that the IRS has imposed, 1099 processing requires the efforts of many employees in a company, and should begin several months before the end of the calendar year to allow ample time for researching and updating information.

This list contains some of the tasks for preparing for the 1099 processing. Please do note this list is not exhaustive:

* Decide which method or combination of methods to use (A/P Ledger, G/L method or combination)

* Prepare internal records

  • Back up E1 work file data for last year for any future IRS communications related to tax assessment.
  • Clear the work files from last year
  • Review and update the AAIs
  • W9 exception report
  • Voucher 1099 info update
  • Payroll Module: Apps Release 9.2 Update 5 has a new integrity report that gives payroll professionals increased confidence in their payroll data ahead of filing the W2 forms, especially if manual adjustments or other changes have occurred throughout the year.

* For the A/P ledger method, set up category code 07 in UDC table 01/07 to identify the different types of 1099 forms and the specific boxes to use on each form.

* For the G/L method, set up AAI item PXxxxx to specify account number ranges for 1099 processing. These AAIs identify the types of 1099 forms and the specific boxes on each.

* Ensure that the address book information for 1099 suppliers is in a format that the IRS allows.

* Verify the value of the person/corporation code for each supplier. All suppliers that receive a 1099 form must have a code of either P (individual) or N (non-corporate entity).

* Ensure that you have a tax identification number (TIN) for each supplier that is to receive a 1099 form.

* Assemble IRS publications and forms for the current 1099 reporting year.

* Install the Electronic Software Update (ESU).

* Set up or verify address book information by using Address Book program (P01012).

* Set up or verify supplier information by using the Supplier Master Information program (P04012).

* Set up or verify company information using the Address Book Revisions program (P01012) and Company Names and Numbers program (P0010).

* Visit the My Oracle Support website for recent news about code changes for the Write Media program (P04515). If applicable, ensure that the Write Media program contains the most current code changes.

* Print 1099 returns by using the Write 1099 Media program (P04515). This program merges data from the F045143 and F045141 tables into the 1099 Merged Worktables (F04514).

* Write 1099 data for electronic filing to the 1099 Electronic Media table (F04515OW) by using the Write 1099 Media program.

* Export 1099 data from the F04515OW table to a text file by using the Export 1099 Electronic Work File (P04515A) and Export 1099 Electronic Work File to CSV (R8904515OW) programs.

* For electronic filing, verify 1099 data in the text file.

1099 Documentation: https://docs.oracle.com/cd/E64610_01/EOAYP/toc.htm

Employers who have paid wages to and withheld taxes from US-based employees use W-2 and W-3 forms to report to employees, Social Security Administration and IRS. Some of the tasks related to US Payroll year-end processing include:

  • Install the appropriate ESU
  • Verify the payroll history
  • Process rollovers
  • Verify employee names & addresses
  • Set up deductions, benefits & accruals (DBAs)
  • Set up pay types for 1099 processing
  • Print audit reports
  • Generate electronic filing work files

The system enables you to produce the following year-end forms:

  • W-2s for employees who work in the U.S
  • 499R-2s for employees who work in Puerto Rico
  • 1099-MISCs and 1099-Rs for contract, retired, or pension employees
  • 1099-NEC form for nonemployee compensation.

US Payroll Documentation: https://docs.oracle.com/cd/E64610_01/EOAYU/toc.htm

IRS Deadlines

To avoid penalties, companies should prepare and submit 1099 and W-2 information by these dates. Deadlines for additional forms can be found in the table below.

*Note that companies with more than 250 forms of each type (1099s & W-2s) to file must file online for the 2022 tax year.

Smart Help for JD Edwards Year-End Processing

Ready to get started? Whether you need end-to-end or a la carte support with processing 1099s or year-end payroll, Smart Help resources are available to assist whenever needed for as long as needed through CNC, technical & functional support including ESU updates, 1099 print & eFile, configuration, setup and so much more.

Looking for help beyond year-end?

Contact CE today to gain easy access to available technical/functional/CNC/3rd party skills and resources for timely guidance, troubleshooting, skills enablement, solution design, project supplementation and more without any upfront hours commitment required.

Related Resources:

Month-End / Annual Close Do’s & Don’ts (recent CE webinar replay)
https://register.gotowebinar.com/register/7314888557786723343?source=1099Blog

IRS Instructions for Forms 1099-MISC and 1099 NEC
https://www.irs.gov/instructions/i1099msc

Year-End Processing Documentation (Release 9.2)
https://docs.oracle.com/en/applications/jd-edwards/cross-product/9.2/eoayp/introduction-to-jd-edwards-enterpriseone-1099-processing.html

Year-End ESUs (Doc 743162.1) https://support.oracle.com/knowledge/JD%20Edwards%20EnterpriseOne/743162_1.html

Smart Help for JDE Year-End Processing
 https://www.circularedge.com/smart-help-1099

Latest 9.2 Capabilities Whitepaper
 http://www.circularedge.com/resources/jde-9-2-outline

***Special thanks to Harshal Sheth, Yogesh Godbole & Sahaya Pitchai for contributing to the functional content 🙂

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