It’s December! Not only does that mean it’s time for Holiday festivities, but its also time to start prepping your Sage product for annual information return processing: 1099s and W-2s.
Sage will be releasing year-end updates mid-December to accommodate the many tax law changes enacted last year. Please call us to assist in the installation of those updates. Until then, now is a great time to review your vendor and employee information. We have full “How To” instruction documents available to take you step-by-step through the verification process. Call us for your copy today. Here are some highlights of what should be on your To-Do list:
For 1099s: Review your vendors- Use the Payment History Report to review payments made to your vendors during the year. Use this report to help identify 1099 candidates. For 1099-INT and 1099-DIV, any interest or dividend payments $10.00 or more and a partial list of 1099-MISC payments would be payments of at least $600 for:
- Rents
- Non-employee compensation (payment of services)
- Prices and awards
- Other Income Payments
- Medical and Health Care payments
- Payments to Attorneys
Please see IRS Pub “Instructions for Form 1099-MISC” for complete instructions
Make sure that your Vendor Master file contains the full, correct vendor name, address, and Taxpayer ID number.
Also verify that all 2019 payments to these vendors have been accumulating in the proper 1099 bucket (i.e. rent (Box 1) vs. non-employee compensation (Box 7)).
For W-2s: Review your employees- Review the Employee Master file to verify each employee has a full correct name, address, and Social Security number. Check to make sure that employees participating in Pension or Profit Sharing Plans are so marked. And it’s a good idea to check that Gross and Social Security Wages are being calculated correctly (i.e. accounting for differences due to 401(k) or HSA contributions).
Both Information Returns are prepared using a third party application, Aatrix. This will need to be refreshed for 2019 once the year is over (online). You can opt for full processing, and have Aatrix e-file the returns for you as well as mail the payee copies to the recipients. This makes processing almost effortless.
So call us for the full step-by-step instruction document, and schedule your install of the year-end update once it’s released. The deadline for filing is January 31, 2020.
To request year end service end service contact us now.
