1099 Threshold Increase

Jennifer Iorio

I know this early to ask but July is half over and I am getting a head start on a few cleanups and I realized that the IRS is changing or has already changed the reporting threshold from $600 to $2000. With this change how will this affect AP and our independent contractors that we send 1099's too? What I mean is currently if I have a vendor checked to received a 1099 in NXT, then any vendor who is paid $600 or more will receive a 1099 and the reports say as such. But now that the reporting amount has changed to $2000 how will that affect the vendors in NXT and my reporting?

Crystal Bruce

Hi @Jennifer Iorio I am checking with my team on this!

Crystal Bruce

Hi @Jennifer Iorio heard back from my team! You have control over who to include when you send your vendor 1099s. Also, if it's a tax requirement change, then Aatrix will update to be aware of that and not produce/suggest reporting 1099s for vendors under the qualifying 1099 amount.