New 1099 Filing Requirements Weigh Heavily on Accounts Payable Departments
Tucked away in the healthcare reform bill (The Patient Protection and Affordable Care Act), signed into law on March 23, 2010, are new rules requiring reporting of goods, services and payments made to all corporations, creating a host of new Form 1099 reporting responsibilities for Accounts Payable departments.
Previously, businesses sent Forms 1099 for payments of rent, interest, dividends, and non-employee services when provided by entities other than corporations. Under the new law set to go into effect in 2012, businesses will be required to send a 1099 to other businesses for virtually all purchases – including corporations -- whenever they do more than $600 of business in a year.
This adds a heavy administrative toll on Accounts Payable departments. To file all these 1099s, companies will need to collect the necessary information from all service providers, including a Taxpayer Information Number or TIN from the business. Businesses on the receiving end of the vast flood of these forms will have to match them with existing accounting records -- no doubt presenting tremendous potential for errors and mismatches.
Now more than ever companies need an automated solution to comply with 1099 reporting responsibilities. To this end, last month we introduced Epicor Tax Connect 1099, the first and only cloud-based 1099 tax reporting and processing solution designed to easily integrate with a company’s enterprise resource planning (ERP) system. Epicor Tax Connect 1099 is delivered on-demand for use with customers’ existing on-premise Epicor ERP environments.
Epicor Tax Connect 1099 allows you to import, submit and manage all of the 1099 data from your Epicor ERP and many other feeder systems, with Tax Identification Number (TIN) validation tools at the ready, and other tools to assist businesses in streamlining year end 1099 procedures. Epicor Tax Connect 1099 acts as an in-house seasoned tax professional, providing the most comprehensive 1099 tax preparation reporting solutions and research required to file accurate and timely returns. With built-in secure servers linked directly to the IRS, Epicor Tax Connect 1099 makes the annual printing, mailing and e-filing a simple one-click process.
For more information on new requirements in 1099 reporting, watch our on-demand webcast "
Let Epicor Help Tame Your 1099 Compliance Process."
Posted by Matt Muldoon, VP of Product Marketing, Epicor