For the Love of 1099s! It’s Time for JD Edwards Year-End

Are you prepared to meet upcoming year-end processing deadlines? As we approach 2022, it’s time to set up your E1 systems and processes to meet and stay compliant with 1099 and US Payroll reporting requirements.

The JD Edwards Accounts Payable system 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 https://support.oracle.com.

What’s New

While there were several important changes that occurred for the 2020 tax year, including the new Nonemployee Compensation form, the 2021 tax year brings a few more updates to 1099 and W2 forms:

New Form 1099-G:

Any unit of a federal, state, or local government is required to file the new 1099-G, if makes certain government payments such as unemployment compensation; state or local income tax refunds, credits, or offsets; Reemployment Trade Adjustment Assistance (RTAA) payments; taxable grants; or agricultural payments.

1099-MISC:

The title has been changed from Miscellaneous Income to Miscellaneous Information.
The description for Box 7 includes payers who made direct sales of $5,000 or more.
New Box 11 for cash payments for the purchase of fish for resale.

1099-NEC:

The form layout has been condensed to accommodate three forms on a single page.
New Box 2 for direct stales of $5,000 or more of consumer products for resale, on buy-sell, deposit-commission or any other basis.
The checkbox for FACTA filing requirement has been removed.

1099-DIV:

New Boxes 2e and 2f for section 897 gains on the sale of US real property interests.

W2 and W3:

The amount of dependent care benefits that can be excluded from an employee’s income may be increased from $5,000 to $10,500.
There may be discrepancies when reconciling W2s and W3s to Forms 941, 941-SS, 943, 944, CT-1, and Schedule H (Form 1040) if you utilized any of the COVID-19 tax relief for 2020.
For those who deferred the employee portion of social security or RRTA tax, information on how to report the deferrals is available

E-File Threshold: the threshold for required electronic filing of most information returns such as 1099s and W2s remains unchanged for the 2021 tax year 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 whether or not you are using new form boxes.

Overview: Year-End Processing Tasks

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).

Some of the tasks related to 1099 processing include: * Decide which method or combination of methods to use (A/P Ledger or G/L method) * 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

* Verify Supplier & Company Setup codes (P for individual, N for non-corporate entity) * Verify all tax identification numbers, legal names * Take latest 1099 ESUs and deploy into test environment first for testing before pushing it to PD * Build and review the work files * Print 1099 Registers and perform any adjustments if required * Perform 1099 Reporting – Print forms (Pre-printed or BI publisher), Mailing & eFiling 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

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 2021 tax year. Also, there are no automatic extensions for 1099s or W-2s for the 2021 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 via on call support, technical and functional help, CNC, ESU updates, 1099 print and e-file, configuration, setup and so much more. Looking for help beyond year-end? Contact CE today to gain easy access to available technical/functional/CNC/3^rd party skills and resources for timely guidance, troubleshooting, skills enablement, solution design, project supplementation and more without any upfront hours commitment required.