October 26, 2020 | Dale Wade, Functional Solutions Architect, JD Edwards Support 

As we approach the end of 2020, it’s time for your financial and HCM departments to perform their annual review of year-end processing changes. Spinnaker Support simplifies this for our customers through our standard comprehensive and personalized JD Edwards year-end support for 1099, W-2, and T4 forms and processes. This post covers what you need to know for 2020. 

What We Do: Deliver Personalized Year-End Support 

One seasonal benefit for our customers is our timely and accurate ERP updates for tax and regulatory changes. Our award-winning Global Tax and Regulatory (GTRC) team of experts personalizes the year-end tax process for each client, delivering precise updates before they need them, regardless of the product version. Our GTRC team works closely with our JDE team to complete all deployment and testing requirements well in advance of government deadlines.  

We then apply all the required updates directly in the customer’s development environment for them and run extensive QA testing on any program changes. This not only eliminates all the resource hours associated with year-end update testing, it means that our customers don’t have to invest in costly in-house deployment or programming skills. 

2020 Year-End Legislative Changes 

Each year, we send custom alerts to our customers covering any legislative changes that may impact their year-end processing. The list below contains our summary of the overall changes that customers will need to be aware of. 

1099 2020 Legislative Changes as of October 19, 2020 

NOTE: We have already covered this change in our blog post on What JD Edwards Customers Should Know about the 2020 Year-End 1099 Changes

We are already actively addressing this issue. With our history of working with JDE customers, we understand a majority of customers utilized box 7 on the 1099-MISC form to report nonemployee compensation. The IRS reported the removal of this particular box from the 1099-MISC form and placed it on a new form, 1099-NEC box 1. We know this will impact most of our customer’s 1099 reporting. 

As soon as we learned of this change at the end of 2019, we began planning for our 2020 year-end activities. We immediately sent a proactive communication to our customers to alert them to the change and how they might start preparing to ready their data for the upcoming 2020 1099 year-end processing.  

Our subject matter experts, along with development, started preparing a functional and technical design document to determine the magnitude of programming changes within the software. We began development activities in June, as we knew we would need to reach out to most of our customers. When the IRS released the Publication 1220, we began to re-visit each customer’s environment and apply the electronic file changes for those that required it.  

Our E1 customers utilizing BI Publisher templates, besides the programming changes above, will require a new 1099-NEC form and the required changes to the 1099-MISC form. 

W-2 2019 Legislative Changes as of October 22, 2020 

There are no State W-2/EFW-2 programming changes required for 2020. Spinnaker Support will continue to monitor for any changes. We will notify our customers if/when changes become available. 

W-2C 2018 Legislative Changes as of October 22, 2020 

There are no W-2C programming changes required for 2020. Spinnaker Support will continue to monitor for any changes. We will notify our customers if/when changes become available. 

State W-2 Legislative Changes as of October 22, 2020 

There are no State W-2/EFW-2 programming changes required for 2020. Spinnaker Support will continue to monitor for any changes. We will notify our customers if/when changes become available. 

Canadian T4 Slip Changes as of October 22, 2020  

For the 2020 tax year, the Canada Revenue Agency (CRA) will be introducing additional reporting for the T4 slip, Statement of Remuneration Paid.Additional reporting requirements will apply to all employers, and will help the CRA validate payments under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and the Canada Emergency Student Benefit (CESB)

How to Report Employment Income During COVID-19 Pay Periods 

For the tax year 2020, in addition to reporting employment income in Box 14 or Code 71, use new other information codes when reporting employment income and retroactive payments in the following periods: 

  • Code 57: Employment income – March 15 to May 9 
  • Code 58: Employment income – May 10 to July 4 
  • Code 59: Employment income – July 5 to August 29 
  • Code 60: Employment income – August 30 to September 26 

Contact Us for More Information 

Concerned about your year-end JD Edwards processing needs? There is still plenty of time to reach out to us. Let’s talk.