As your business grows and expands in the United States, the USA CSF helps to keep your Epicor Financials system compliant from day one to save time and expense. The CSF package contains the most used financial and operational functionalities in the country including:
These are federal personal income tax information forms that are issued by businesses and organizations that document certain fiscal transactions conducted in the tax year.
For employees earning a salary or wage, the employer reports their annual income on the W-2 Form. The 1099 forms report all personal earnings and income other than wages, salaries, and tips. There are more than 20 different versions for the 1099 forms.
In general, payers must fill out the appropriate 1099 forms and submit these to their payees by January 31 each year, informing the IFRS at the same time.
Individual taxpayers need to keep the 1099 forms to calculate their personal income tax by April 15 or quarterly, whichever applies.
Individuals owning a portfolio of stock investments or mutual funds may receive a 1099-DIV form to report the dividends they receive during the year. These payments are different than the income they earn from selling stocks, itis a payment from the earnings of the corporation directly to its shareholders.
Other investments may yield different taxable periodic interest payments, reported to individuals on the 1099-INT form. Taxpayers receive this form from banks where they have interest bearing accounts.
Independent contractors or self-employed persons should receive a 1099-MISC form from each business that pays them at least $600 during the tax year.
The 1099-NEC form was reintroduced in 2020. It is used to report non-employee compensation above $600/year for services performed in a trade or business by someone who is not treated as an employee. Previously it was reported inbox 7 on the 1099-MISC form. Generally, payers must file the 1099-NEC form by January 31st each year. The new1099-NEC form is available in the Epicor Financials 10.2.700 and later versions.
The 1096 form is a cover sheet used to transmit paper forms for reporting non-employee income such as 1097,1098, 1099, 3921, 3922, 5498, and W- 2G to the IRS. This form should not be submitted electronically.
Each 1099 form reports on a different type of income and payment. The 1099 User Definable Forms functionality in Epicor Financials enables the creation of arbitrary 1099 forms by the end user. Anyone can create a new 1099 report for any scenario directly in Epicor Financials.
As a first step, new boxes should be created that summarize the required data from the existing transactions. Then, the box layout needs to be designed directly in the application, finally the appropriate boxes should be linked to their locations in the new form layout.
The 1099 User Definable Forms can be printed for submissions through postal mail, but these can also be saved and forwarded electronically as well.
The USA CSF package allows organizations to collect the data required for the 1099 forms from the Epicor Financials system and present these in the information returns format requested by the IRS.
The 1099 forms identify the payer and the payee by their federal Taxpayer Identification Numbers (TIN), such as the Employee Identification Number (EIN), a Social Security Number (SSN), the Individual Taxpayer Identification Number (ITIN) or others.
If the forms are filled out with a missing or incorrect TIN, penalties up to $270 per form may apply.
The IRS enables a TIN matching service that can verify the TIN and name combinations by submitting a text formatted file in batches up to 100,000 items.
The USA CSF package in Epicor Financials offers a pre- filing functionality to help customers utilize this IRS service to validate TINs and names prior to submitting the information return to the IRS. The functionality allows a manual look-up as well as bulk processing.