News Regarding IRS 1099-NEC Form
IMPORTANT: For tax year 2020 forward, form 1099-NEC must now be used for reporting Non-Employee Compensation previously reported in Box 7 of form 1099-MISC, which is supported by E-File Magic.

Important Updates

The Internal Revenue Service is changing 1099-MISC Box 7, "Non-Employee Compensation" to a new form, 1099-NEC. This is effective starting tax year 2020, meaning that when reporting Non-Employee Compensation previously reported in Box 7 for Recipients you Paid in 2020, you will now use form 1099-NEC. E-File Magic supports form 1099-NEC.

Existing Clients

If you previously filed your forms using E-File Magic and wish to Copy Forward recpients from filing year 2019 to 2020, E-File Magic will automatically convert Recipients where you had amounts in Box 7 to 1099-NEC forms when using the "Copy Forward" feature.

Follow the guide below to copy your recipients forward:

1

Select Filer

Select a filer and Click on the "Copy Forward" button.

2

Confirm Copy Forward

Confirm your intent to copy all recipients forward.

3

Confirm 1099-NEC Forms

Review and alter your 1099-NEC forms as necessary.

If you intend to import your information from QuickBooks Online or Xero, E-File Magic will allow you to assign a given Non-Employee compensation Vendor/GL Account to Box 1 on the new 1099-NEC Form. If you also wish to import recipients that you are not reporting Non-Employee compensation for from QuickBooks or Xero, E-File Magic will automatically create both 1099-MISC and 1099-NEC forms as necessary.

New Clients

You can Import utilizing our Excel Template, From QuickBooks, Xero, or manually enter new 1099-NEC forms as needed.

State Filing Requirements

The 1099-NEC Form, as of Filing Year 2021 IS currently part of the IRS Combined Federal/State filing program. States not participating in this program may require direct e-filing (generally IF YOU WITHHELD taxes for a given 1099-NEC Recipient) with their online tax reporting portals in addition to Federal e-file. E-File Magic can supply you with a copy of the IRS 1220 Specification file to assist you in meeting your State compliance requirements. Be sure to request this service when releasing your data for processing.

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