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Sage 500 ERP 1099 Updates

Here is a notice that Sage recently released regarding 1099 reporting for 2013 for Sage 500 ERP:

Sage 500 ERP updates for 1099 reporting

If it's fall, it must be time to start planning for 1099 updates again. Just to be certain no one is caught unaware, let us remind you of a few important points regarding the availability of these updates:

  • Engineering support for version 7.3 officially expired effective September 30, 2013.
  • The required 1099 updates will be provided and included in the December 2013 Product Update for the version 7.4 and 2013 releases only.
  • The Sage 500 ERP 2014 release includes the updates.
  • The updates are not delivered separately. They are only available as part of either the release or the product update.

Begin planning the necessary upgrade engagements now to allow adequate time to get the updates applied in time for 1099 filing deadlines!

Once Sage releases the 1099 updates in late December or early January, we notify our customer base regarding the availability of the update. Since most of our customers have customizations to their system, it is not cost effective to apply the December 2013 update so 1099s can be printed. Therefore, in the past we have extracted the updated screens and database objects from Sage related to 1099s. We then refresh the customer's test environment database with data from production and install those updates in the test system so 1099s can be printed out of Test. We also recommend setting up a new workstation to print the 1099s from so only one workstation gets the updated screens and reports in case it causes an issue with other functionality within the system. Once we extract the 1099 updates that Sage releases, we will determine the costs associated with applying the update by version and will communicate that with any customer that is interested in receiving the 1099 update. Please let us know if you would like the update and we will get you on our list to contact in early January.

Here is the communication we sent out last year for the 2012 1099 Update for your reference:

It's that time of year again. Sage has released their 1099 update program for 2012. The installation program from Sage will only install on the following versions of Sage 500 ERP:

Sage 500 ERP 7.5:
General Release includes the 2012 1099 updates so no update is required

Sage 500 ERP 7.4: December 2011 Product Update
(7.40.2) or newer

Sage 500 ERP 7.3: December 2011 Product Update (7.30.8) or newer

Sage 500 ERP 7.2 and earlier: No Longer supported from Sage

The update contains 3 crystal report files, a new dll file, and a new executable to deploy to the client workstations. There are also 2 scripts that need to be applied to the Sage 500 ERP database. If you are on a version of Sage 500 ERP outside this supported range, we can still apply the 1099 changes to your environment, but we would recommend installing the files on a computer that is not used for normal Sage 500 ERP functions and generating your 1099s from that computer. That way, we will not run the risk of affecting other areas of the program and interfering with your daily tasks.

Please let me know if you would like to schedule the 1099 installation on your system. Our estimate for this installation is 2-3 hrs depending on the version of Sage 500 ERP you are currently running. We can also look at retro-fitting the 1099 update into Sage 500 ERP 7.2 or 7.05, but that will require some custom development effort. Thanks.

Here is a description of the changes for 2012:

Electronic Filing Programming Changes (from IRS Publication 1220)

-       For all Forms, Payment Year, Field Positions 2-5, for the Transmitter "T" Record, Payer "A" Record and Payee "B" Record must be updated the four-digit reporting year (2011 to 2012), unless reporting prior year data.

-       Form 1099-DIV, Dividends and Distributions, two new amount codes, "F, Exempt Interest Dividends" and "G, Specified Private Activity Bond Interest Dividends," were added in the Payer "A" Record.

Form Printing Changes (from IRS Instructions for 1099-DIV, 1099-INT, 1099-MISC)

All Supported Forms

-       All Filers to truncate a payee's identification number (social security number (SSN), individual taxpayer identification number (ITIN)) on paper payee statements for tax year 2011 and 2012.

-       To truncate, replace the first 5 digits of the 9-digit number with asterisks (*) or Xs (for example, an SSN xxx-xx-xxxx would appear on the paper payee statement as ***-**-xxxx or XXX-XX-xxxx).

1099-INT

-       Exempt-interest dividends from a mutual fund or other regulated investment are no longer reported on Form-INT.

-       New boxes (11, 12, & 13) were added on Form-INT to report state income tax withheld.

1099-DIV

-       Exempt-interest dividends from a mutual fund or other regulated investment are now reported in new boxes (10 & 11) on Form-DIV.

-       New boxes (12, 13, & 14) were added on Form-DIV to report state income tax withheld.

Tagged With: Sage 500 ERP

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