1099-NEC Replaces 1099-MISC for Payments to Independent Contractors, Vendors
For our clients who in previous years issued a 1099-MISC (reported in box 7) to independent contractors, vendors, freelancers & consultants, beginning Tax Reporting Year 2020, you must issue and file a Form 1099-NEC (nonemployee compensation) to these recipients instead. The other traditional uses for a Form 1099-MISC (i.e. rents, gross proceeds paid to an attorney, other income payments) remain in effect and Form 1099-MISC will continue to be used for these purposes.
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Maryland Dept. of Labor New IT System - BEACON 2.0 Launch
As of September 21, 2020, Maryland Division of Unemployment Insurance ("DUI") will be launching a new and modernized IT system. The existing system will shut down on September 16, 2020 at 5pm. Employers and third party payroll agents that process quarterly reports and maintain the current unemployment insurance account can now activate the account in the BEACON 2.0 system.
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The New Charitable Deduction for Nonitemizers
Congress included a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act intended to provide some relief for charitable organizations, who are seeing a decline in contributions due to the recent economic turmoil. The CARES Act permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an "above-the-line" deduction, i.e., as an adjustment in determining adjusted gross income (AGI), for tax years beginning in 2020.
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