1099s in Microsoft Dynamics GP: What you can do now for a smoother 2017 year-end
Really? Already?
Yes, I know; year-end just wrapped up, and you do not want to start thinking about year-end tax forms already. But how smooth and quick was that wrap-up?
A few small changes now in Microsoft Dynamics GP will lead to a better experience at this year-end. This article describes what you can do now with Dynamics GP to stay ahead of 1099 tax forms in 2017.
Some 1099 tax form basics
Let us first explore the federal requirements that apply to 1099s, then how to fulfill those requirements using Dynamics GP.
IRS Form 1099 is classified as an information return, used by payers to report transactions other than wages or tips (e.g., payments to independent contractors).
Deadlines: Most recipient copies of 1099 forms are due January 31st, and a copy needs to be submitted to the IRS (along with a 1096 form, "Annual Summary and Transmittal of U.S. Information Returns") by February 28th. If you file electronically, you typically have until March 31st. Note: Starting January 2017, for the first time, the 1099 MISC with income in box 7 must be reported to the recipient and the IRS by January 31,,even if e-filing.
Penalties: Incorrect and/or late filings can lead to penalties. The amount of the penalty is based on when you file the correct information return. The penalty is as follows.
- $50 per information return if you file correctly within 30 days (by March 30th if the due date is February 28th); maximum penalty $536,000 per year ($187,500 for small businesses).
-
$100 per information return if you file correctly
more than 30 days after the due date but by ...
FREE Membership Required to View Full Content:
Joining MSDynamicsWorld.com gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more. You can also receive periodic email newsletters with the latest relevant articles and content updates.
Learn more about us hereor login