Symptom
You want to generate 1099-NEC Tax Return file for the suppliers whose Withholding Tax Income Type is 7 - Nonemployee Compensation.
Environment
SAP Business ByDesign
Resolution
With SAP ByDesign 2011 SPS02 release, you must generate the separate Tax Return - 1099-NEC by creating a new Tax Return Arrangement.
- Go to Tax Management work centre.
- Click on Tax Authority view.
- Search for the Tax Authority.
- Go to Company Tax Arrangements tab.
- Go to Tax Return Arrangements tab.
- Click on Add Row.
- Enter the Tax Return Arrangement ID.
- Select the Tax Return Type = 8 - Non Employee Compensation 1099-NEC.
- Select the Person Responsible.
- Fill the other data based on your business requirement.
- Click on Save.
Now, you have to create a new Withholding Tax Return Run using below steps:
- Go to Tax Management work centre.
- Click on Withholding Tax Return Runs.
- Click on New and Tax Return Run.
- Select the Tax Return Arrangement ID (Created based on above steps).
- Enter From/To Date.
- Click on Set to Active.
- Click on Schedule and Start Immediately.
- Click on Save and Close.
The Withholding Tax Return - 1099-NEC will be generated.
Note: Until the last release of SAP ByDesign(2011 SPS01), the system was generating single form of 1099-NEC and 1099-MISC with single Tax Return Type - Miscellaneous Income (1099 Misc).
Keywords
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