Sage 100 1099 Compliance: What You Need to Know for Tax Season

2025 is near, and new 1099 compliance requirements are here. A significant change to these requirements means individual vendor names must be broken into first, middle, and last name fields. This change impacts all Sage 100 users who process 1099s for individual vendors.

Only the following compliant versions of Sage 100 automatically parse existing vendor names into separate fields:

• Sage 100 version 2024.1 (7.30.1.0)

• Sage 100 version 2023.4 (7.20.4.0)

All users with older Sage 100 instances must ensure compliance. For Sage 100 users, compliance is not just about avoiding penalties. It’s about streamlining your operations and accessing new tools that make financial reporting more manageable than ever.

Here’s what you need to know about these compliance changes and the benefits of upgrading your Sage 100 instance.

Why You Need to Upgrade: Major Change

Upgrading your Sage 100 instance is the easiest way to comply with IRS requirements. Here’s how an upgrade will benefit you:

1. Stay Current with IRS Mandates: Upgraded Sage 100 versions have automatic updates, so you’ll have the latest forms, reporting templates, and data validation, and your submissions will meet the 2024 IRS standards.
2. Save Time on Reporting: There will be no more manual adjustments and workarounds. The upgraded software automates critical 1099 steps, making year-end reporting faster and more accurate.
3. More Features for Efficiency: The latest Sage 100 versions have improved data management, reporting, and vendor tracking. These features eliminate errors and make reporting seamless.
4. Manage New Form 1099-NEC: The new 1099-NEC for Non-Employee Compensation requires updating of your accounting systems. Upgrading Sage 100 helps you manage this change and avoid penalties.
5. Reduce Risk of Penalties: Non-compliance can cost you significant audits. Upgrading keeps you in compliance with regulatory changes and reduces risk for your business.
6. Future Proof Your System: Upgrades address current compliance and prepare your system for future tax and financial changes.

Upgrade Your Sage 100 System

1. Check Your Version: Review Sage’s documentation or talk with your BrainSell expert to see if your version is 2024 compliant, especially if you’re using older versions.
2. Schedule an Upgrade: Work with BrainSell to plan and execute the upgrade with minimal downtime.
3. Train Your Team: Let BrainSell help your staff become familiar with the new features and the transition.
4. Validate Your Data: After the upgrade, run system checks to verify vendor information, ensure data is formatted correctly, and run 1099 test reports. Select the correct calendar year to ensure compliance and accuracy when validating data.

Conclusion

Upgrading your Sage 100 is not just about compliance – it’s an investment in efficiency, accuracy, and peace of mind.

By staying current, you’ll avoid penalties, reduce manual work, and have the tools to succeed in 2025 and beyond. You can also submit corrections as part of the reporting process so your tax reporting is accurate!

If you need assistance with upgrading or want to explore compliance solutions, connect with BrainSell today!