2020 IRS Tax Reporting Notifications:

If we are on 19.3, do we have to upgrade to 20.3 for tax reporting?

No, for Payroll, unless you paid out salary due to Covid-19 Sick & Childcare Act:

You do not have to upgrade. You must upgrade if you are interested in auto updating tax rates or if you paid out Covid-19 Sick/Childcare pay.

AND, if you are upgrading, before running payroll, PLEASE test that your payroll check form still prints in the correct format (all data is present and printing in the usual areas on the check).

If I upgrade why should I test that my payroll check form still prints correctly?

We now have the same type of form writer function that exists in all other packages, however based on how your form is designed, it may need changes applied before your next payroll run.

If you discover your form is not correct during the first run of a payroll, the only option is to answer YES to “checks printed okay” and void checks, fix form, re-key the hours, and then reprint checks.

To test: PAY > Forms Manager > Check Forms Design > Select your check form > Go to Screen 1 of 4 > select PRINT button at bottom of screen to print to plain paper > Lay over your check paper to verify it will still line up correctly.

NOTE: The “mask SSN” question is no longer part of paycheck printing process. you MUST edit your form to use the NEW field SOCIAL SECURITY NUMBER MASKED in order to make your SSN on checks.

YES, you must upgrade for Accounts Payable: 1099-Misc, 1099-INT, 1099-NEC:

You must upgrade to 20.3.0 to have the necessary form and electronic reporting changes

YES, you must upgrade for Patronage: 1099-PATR:

You must upgrade to 20.3 service update 2 to have the necessary form and electronic reporting changes

You must upgrade to 20.3 service update 1 to handle 1099-PATR forms for patrons with address in foreign countries.