Tax Year 2021 Year-End Updates - 20.11

This release includes these 1099 forms which have been updated for tax year 2021:

• 1099-MISC

• 1099-NEC

• 1099G

In addition, the 1099-MISC form was changed for 2021 to include the information in Box 11 for Fish Purchased for Resale. This can be created by setting up the 1099 Parameters for future tracking if you need to report.

The 1099-NEC form now prints three forms per page and includes a new checkbox (Box 2) which may be updated in the maintenance option to indicate that the amount reported is for Direct Sales of $5,000 (or more) for Resale. This checkbox must be manually updated if it needs to be reported.

The associated Federal 1099 electronic file updates have also been completed and included in this release.

Please note that State updates for electronic files are just being released - if you are notified of changes in State 1099 reporting, please contact the Help Desk immediately with the information. Also, watch for updates in PowerSchool Community for your State on this and other topics. At this time, we have completed all the updates for which we have received change information.

The W2C electronic file was modified to correctly report Connecticut wages.

Last year, customers reported that the local tax amounts that should be reported on the OH State W2 Electronic file were not included in the file when the information was in the second W2 record for someone. We have corrected this for the 2021 tax year.

We have corrected the option in the W2 maintenance that allows customers to import information into Box 14 for sick pay. It was not creating a second (sequence 1) or subsequent form if one was needed when the first W2 record (sequence 0) had all Box 14 fields filled. This has been corrected.

As part of the 2021 year end release, we are including updates for the Rhode Island State W2 electronic file that is created when customers check the box “Include R/S records” and put RI in both of the fields prompting for the state to report.

We have modified the W2 Summary report accessed from the option found at Human Resources > Periodic Routines > Year End > W2 > Employee W2 File Edit Reports > Summary to include a total for each of the reported values from Box 12. Previously, it only reported the amounts that are included on the W2 Federal Electronic file (types D, E, F). Now it will match with the Detail report which runs from the same option.

When a record in the Fund Accounting -> Reference Tables -> Vendor List vendor name and address are updated during January, a message is displayed if there is a current tax reporting year 1099-MISC, asking if the 1099-MISC form should also be updated. We have added the same check, question and update for the 1099-NEC.

We have modified the Federal W2 Maintenance - Advanced Search to allow selection based on the codes from Box 12 and Box 14, and the amounts that are included for those fields. This allows more flexibility in selecting records that may need to be updated or corrected.

We have modified the W2 processing - Print All W2s option for Ohio to add a Sort Order of S - All Local Taxes which will allow customers to print just W2s for a particular Local Name (the description of local taxes in the W2 record) for year end reporting to the locality.

Affordable Care Act information used for processing the 2021 electronic file and providing the 2022 options has been made available for 1095-B and 1095-C processing. The database update process will install this information for you.

When the Import Data option is run for the Affordable Care Act 1095 Maintenance, the Plan Start Month and the Employee Age are now being updated if the data is present in the import file for existing 1095 records. It will also load all the information into a new record when there is not an existing record to update.

We also changed the warning for missing ICHRA ZIP to only be displayed if Offer Code is an ICHRA code that requires the zip.

When creating a 1095 in the Affordable Care Act load, and when a District does not have a waiting period prior to medical coverage enrollment. i.e. someone hired on 2/24/2020 and enrolling in benefits will have a medical coverage effective date of 2/24/2020. In the ACA Benefit Group Maintenance, the ACA REPORTING benefit group has a Hire Offset Type of "immediate" to reflect this. After Creating Employee 1095-Cs, all of the new hires have the correct Employee Offer and Coverage information; however, the Covered Individuals information does not check off the first month of coverage for the employee as a covered month (though it should).

The Covered Individual is being updated based on the Offer of Coverage for the employee. Therefore, since the Offer of Coverage only applies to each full month of coverage, the initial partial month of coverage is not updating the Covered Individual for the employee.

This particular situation has been corrected, and the first month of coverage box will now be checked.

We have modified the Affordable Care Act option to Create Employee 1095s from the Benefits module to prompt whether whether the customer wishes to Exclude Employee Flagged as Dependent. In some set ups, customers have included the employee, as well as dependents, in the Benefits module Dependent table. This caused the system to create TWO Employee records in the 1095 maintenance. The load option will now check for duplicate SSNs and exclude the ‘dependent’ employee record.

We have enhanced the Validation process for the Affordable Care Act 1095 Electronic file to ensure that the Plan Start Date is now included in the process, as the field is now required.

The Connecticut W2C electronic file has been modified to include the state information as required by the specifications. It will only include records for corrections to Connecticut state income.

When loading dependents, the Affordable Care Act 1095 was checking the all 12 months incorrectly, when not all the months included coverage for employees and dependents. We have modified the load to not check all 12 months box when there are months missing.

We have corrected the W2 Electronic file for Ohio to include the local tax and totals records.

We have corrected the W2 Electronic file to include Pennsylvania total records correctly.

We have corrected the handling of Vendor Name with four parts to it splitting into multiple Pennsylvania specific fields when loading the 1099 information for 1099-MISC and 1099-NEC.

We have corrected the W2 Electronic File to correctly include Connecticut state detail and total records RE, RT and RF.

When loading December Affordable Care Act 1095 data, it erased all prior months data that had been loaded on a monthly basis. We have modified the load so that when it runs for the entire year, it correctly sets the full year check boxes.

The W2C report has been modified to only display values for boxes 12 and 14 if the values have a changed (different) value entered. The Hard Copy report has been modified accordingly. Also, the W2C electronic file has been modified to correct the information on the RCU record.

The updated 2021 Affordable Care Act employee landscape format 1095-C and 1095-B forms have been included with this release. Please make sure to install Employee Access Center forms at On-Premise/Self Hosted customer sites to get the changes.

This release includes the Affordable Care Act landscape format 1095-C and 1094-C forms for filing with the Internal Revenue Service. They may also be given to employees if you wish. We plan to release the portrait format with the mailer layout with the next release - January 2022 minor.

A correction has been made to the 1099-NEC Mailer format to prevent the left side of the boxes from printing slightly over the perforations on the form. If you have completed and sent the forms, they are legible.  No important data is lost when the mailer is opened. If you have already sent your forms to the vendors, you do not need to reprint, and do not need the update. 

Modifications have been made to the 1099-NEC electronic file to enable printing of 'K' State totals record when the CS/SF option is enabled for the generation of the Electronic file.

A correction to print the address line within the designated address space has been made to the 1099-NEC Copy A for the IRS lineup.  The address line was previously printed below the designated address space.  If you report to the IRS electronically for Federal 1099-NEC, there is no impact on your submission. 

If you experience a problem with the address line not printing at all, please contact the Help Desk for a database update.

In the W2C maintenance, when changing other fields, the box 12 and 14 fields were defaulting in a value, indicating a change to those fields. In this situation, no changes were intended, and this caused incorrect information to appear on the W2C printed and electronic file. This has been corrected.

The 2021 W2 form update has been included with this release for the Employee Mobile Application.