1099-NEC Withholding Tax Return for Nonemployee Compensation
The objective of this blog post is to inform you that in SAP Business ByDesign 21.02 release you can find a new 1099-NEC Withholding Tax Return for reporting nonemployee compensation in US. Internal Revenue Service (IRS) published annual legal changes to tax forms, either in print and TXT file for fiscal year 2020.
The nonemployee compensation amount was previously part of the 1099-MISC Withholding Tax Return. This income type was removed from the 1099-MISC Tax Return. As of fiscal year 2020 nonemployee compensation is reported in separate 1099-NEC Withholding Tax Return.
- New Tax Return Type 1099-NEC is available with the possibility to setup a threshold, if needed.
- The new print form is available for the 1099-NEC Tax Return.
- TXT file is available for 1099-NEC Tax Return in SAP Business ByDesign
Using this new tax return type in SAP Business ByDesign you will be compliant with US legal requirements. Nonemployee compensation is reported separately for each supplier, following the local legislation.
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