1001 Salaries and Wages: Amounts paid to, or on behalf of ...



The New Approach Special Notice – 2021 Startup Procedures

Custom Micro Works Copyright 2021 Custom Micro Works All rights reserved

Date: 1/4/2021

Stage 2 – Year-End Closing Document. Stage 2 of the year-end closing documents is now available for download.

NA Upgrade – Version 3.22. NA version 3.22 has been added to the CMW website. This upgrade accommodates the changes discussed below. Please install the upgrade before you process any new paychecks in 2021.

Payroll Changes for 2021. Every year payroll tax rates and tax tables must be updated for the upcoming new year, in this case 2021. The number of changes to the payroll accounting process for 2021 has been numerous and substantial in nature compared to most prior years.

You should closely monitor the first set of paychecks you create in 2021 BEFORE printing or issuing the checks. A quick way to do this is to view the related pay detail using PR/View Paychecks. Highlight the paycheck in the listing and click on View Pay Detail. You can also print the pay detail using PR/Inquiry – Pay Detail Report.

• Suggestions for First January Payroll. An important suggestion I have given to city clerks in the past is to perform a “reasonableness” test on the pay detail for one or more employees’ paychecks that might have been made affected by certain payroll changes, such as an increase in employee pay rates. This suggestion is particularly important when starting a new year. A reasonableness test is merely designed to visually examine pay detail for items that do not look right. If you see something that does not look right, you should contact technical support immediately.

1099 Changes for 2021. A new 1099 form has been introduced in 2021 that impacts your 1099 reporting of financial transactions in 2020. The new form is Form 1099-NEC 2020 (nonemployee compensation). Prior to Form 1099-NEC, nonemployee compensation was reported on Form 1099-MISC in Box 7. What was reported in the past in Box 7, Form 1099-MISC will now be reported on Form1099-NEC in Box 1.

Many cities will still be required to report other, different, types of payments on the new Form 1099-MISC 2020. NA will assist you in sorting it all out. To minimize the confusion you might otherwise have, please follow these general guidelines:

• Do not get in any hurry, but do not wait until January 31st regarding 1099s.

• Before attempting to print anything, on any form, print the related financial report (BA/Reports/Print Form 1099, Form1096/Print Detail Report. These reports will help you to better understand what is being printed on which form 1099s.

• Be cautious, and familiarize yourself with how NA can help you. DO NOT immediately start printing on the tax forms. Instead, experiment by printing on plain paper first. Then place the printed sheet over the tax form and hold it up to the light to satisfy yourself that the amounts are being properly printed in the intended box on the form. The tax forms are tested every year. However, if you experience any problems please do not hesitate to notify technical support.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download