2021 Form 1099-MISC

For 2021 reporting, the title for Form 1099-MISC has been changed from "Miscellaneous Income" to "Miscellaneous Information."

Vantagepoint has been updated to reflect this name change.

2021 Form 1099-NEC

Updates to this form include the following:

• Two blank boxes, as well as the FATCA filing requirement check box, have been removed from the old form for a more streamlined format.

• Previously blank, Box 2 is now enabled. Select the check box in Box 2 (or use Box 7 on Form 1099-MISC) to report direct sales totaling $5,000 or more of consumer products for resale, on a buy-sell, a deposit-commission, or other basis.

Old Form

New Form

Vantagepoint has been updated to reflect these changes on the form.

2021 Form W-2 Box 14 (Reporting COVID Leave Wages for Leave Provided in 2021)

The IRS released guidance (Notice 2021-53) to employers about reporting on Form W-2 the amount of qualified sick and family leave wages paid to employees for leave taken in 2021. The notice provides guidance for recent legislation, including:

• Families First Coronavirus Response Act (FFCRA), as amended by the COVID-Related Tax Relief Act of 2020

• American Rescue Plan Act of 2021

Eligible employers claiming credit have separate reporting requirements for:

• Leave provided to employees during the period beginning January 1, 2021 through March 31, 2021, under the Families First Coronavirus Response Act

• Leave provided to employees during the period beginning April 1, 2021 through September 30, 2021, under the American Rescue Plan Act of 2021

Employers must report to the employee the amounts of the qualified sick leave wages and qualified family leave wages that were paid, with each amount separately reported either in Box 14 of Form W-2 or on a separate statement.

If an employer that does not claim credits under these provisions, or an employer that is prohibited from claiming those credits, erroneously reports sick leave wages or family leave wages to an employee on Form W-2, Box 14, or on a separate statement, the employer must either furnish a W-2c, Corrected Wage and Tax Statement, or provide a corrected statement to the employee correcting the erroneous reporting. The employer should send the Form W-2c or corrected statement to the employee, only. The employer should not file Form W-2c with the Social Security Administration solely to correct the amount in Box 14.

For more information on the types and amounts of wages that employers must declare on Form W-2, see Notice 2021-53.

For more information on the most recent Form W-2, see 2021 Form W-2.

2022 Social Security Wage Base

The Social Security (Old-Age, Survivors, and Disability Insurance) taxable wage base increases from $142,800 to $147,000 for 2022.

Georgia 2022 Tax Updates

The standard deduction amount increases for employees with the following statuses:

• Married Filing Joint Return: From $6,000 to $7,100

• Single or Head of Household: From 4,600 to $5,400

• Married Filing Separate Return: From 3,300 to $3,550

The standard deductions will increase starting in 2022, under H.B. 593, which was signed March 22, 2021. The personal and dependent allowances used in the percentage method, as well as the percentage method tables themselves, remain unchanged from the 2021 guide.

For more information, see the following references:

• https://dor.georgia.gov/employers-tax-guide 

• https://dor.georgia.gov/document/document/2022-employers-tax-guidepdf/download

Maine 2022 Tax Update

Updates to Maine taxes for 2022 include:

• The amount of one withholding allowance increases from $4,300 to $4,450.

• The standard deduction amounts increase as follows:

  • Single: From $9,700 to $10,100

  • Married: From $22,250 to $23,050

• The annual withholding tax tables for Married and Single have been updated.

The standard deduction decreases according to a formula for single individuals who earn more than $85,850 annually (up from $83,850), or for married individuals who earn more than $171,700 annually (up from $167,700). The deduction reaches zero when a single individual earns at least $160,850 annually (up from $158,850), or when a married individual earns at least $321,700 annually (up from $317,700).

The tax brackets used in the percentage method were also adjusted.

For more information, see the 2022 withholding methods.

Nebraska 2022 Tax Update

Updates to Nebraska taxes for 2022 include:

• The annual withholding allowance increases from $1,960 to $2,080.

• The annual withholding tables for Single and Married have been updated.

The tax brackets used in the percentage method have also been adjusted, but the tax rates remain unchanged and continue to range from 2.26% to 6.95%.

For more information, see https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/business/Cir_En_2022/2022cir_en_whole.pdf.

New Mexico 2022 Tax Update

The tax brackets used in New Mexico's 2022 withholding methods have been adjusted, but the tax rates remain unchanged. For more information, see FYI-104 New Mexico Withholding Tax - Effective January 1, 2022.

New York Publishes Draft 2022 Withholding Methods

Source: Bloomberg Tax

On September 27, 2021, the state Department of Taxation and Finance published Draft 2022 withholding methods for New York state and the city of Yonkers in a proposed rule. The proposal adds a third withholding method, called the Top Income Tax Rates Method, for both New York State and Yonkers. This third method only uses the three new tax brackets for high-income individuals introduced in New York’s fiscal 2022 budget (A. 3009), which was signed April 19, 2021.

If an employee earns enough annual income to be subject to the new tax brackets, which is $1,077,550 for single individuals or $2,155,350 for married individuals, the new method would be used for their withholding instead of the usual exact calculation method.

The draft withholding methods also contain tax rate decreases scheduled for 2022 in New York’s fiscal 2017 budget (S. 6409).

The proposed rule also changes the supplemental withholding rate for New York state to 11.7% and the rate for Yonkers to 1.95975%, both effective January 1, 2022. These are higher than the previous supplemental rates of 9.62% and 1.61135% in effect until June 30, 2021, but lower than the rates of 13.78% and 2.30815% in effect for the second half of 2021.

The values of the state annual standard deduction, at $7,400 for single employees and $7,950 for married employees, and a state allowance, at $1,000, were unchanged. The amount of the adjustment for the difference between the federal and state withholding allowance was also unchanged at $3,300.

Oklahoma 2022 Tax Update

Updates to Oklahoma taxes for 2022 include:

• The annual withholding tables for Single and Married have been updated.

• The tax rates used in the withholding methods have decreased by 0.25 percentage points each and now range from 0.25% to 4.75%, instead of the 0.5% to 5% range previously used.

South Carolina 2022 Tax Update

Updates to South Carolina taxes for 2022 include:

• The standard deduction maximum amount increases from $4,200 to $4,580.

• The personal exemption amount increases from $2,670 to $2,750.

• The annual percentage table has been updated.

For more information, see: https://dor.sc.gov/forms-site/Forms/WH1603F_2022.pdf.

Wisconsin 2022 Tax Update

Updates to the Publication W-166, Withholding Tax Guide include a reduction to one formula method from the previous two methods. The previous methods and the new method are both based on annualized wages.

In the formula to be used beginning January 1, 2022:

• The income tax rates that are used in the formula now range from 3.54% to 7.65% (previously, the rates ranged from 4% to 7.65%).

• The formula's tax bracket thresholds and standard deductions have increased.

• The flat supplemental rates, which can be derived by estimating an employee's annual gross salary and applying the relevant tax rate to supplemental payments, range from 3.54% from 7.65% (previously, the rates ranged from 4% to 7.65%).

For more information, see https://www.revenue.wi.gov/DOR%20Publications/pb166.pdf.

Upgrade Touch Server to PHP 8.0.13

The Touch Server for this version of the Vantagepoint mobile application has been upgraded to support PHP 8.0.13.

Defect 1264200: When you clicked Import Charges, imported charges to an existing credit card statement, and then selected Other Actions » Import History, the Action column on the Import History dialog box incorrectly displayed In Progress after the import was completed.

Defect 1548477: When you made changes to an employee record and clicked Save, you received an error message and could not save the changes.

Defect 1560847: You could not edit firm names and employee names if you switched from the Vantagepoint PSA module to the Accounting module.

Defect 1530071: If you changed the default options of the Invoice Register report and then ran the report, you received a server error when you tried to click the hypertext link for the Invoice drill-down report.

Defect 1530259: When you selected the Round to Whole Amounts check box in the Project Progress report options, the generated report still displayed the data with decimal amounts.

Defect 1565068: The Project Progress report filtered the Financial Analysis information based on the Report Activity options. When the project includes current activity, the Financial Analysis section should include all data related to current, year-to-date (YTD), and job-to-date (JTD) values.

Defect 1548982: The submitted status of line items in timesheet records changed to awaiting submission when it should not have. This issue occurred if:

1. The enabled timesheets approval workflow had the Approval Level field set to Timesheet Lines in Settings » Workflow » Approval Workflows in the desktop application.

2. You restarted the timesheets approval workflow.

Defect 1501264: When you clicked timesheet alert notifications, nothing happened. This issue occurred if you had recently upgraded from Vision to Vantagepoint.

Defect 1508695: In Vantagepoint Search, if your security role did not have access rights to Time Groups or Expense Groups menu items on the Overview tab of the Roles form in Settings » Security » Roles, you could not locate employees using either Employees - Timesheet Group or Employees - Expense Group criteria in the Search Criteria grid.

Defect 1547684: This error occurred when you did the following:

1. In Settings » General Ledger » Chart of Accounts, you created or opened an account that had a record listed in the Limited Company Access grid.

2. You created or opened another account and, in the Cash Basis Account drop-down menu, you selected the account from step 1.

3. In the Limited Company Access grid, you added the same company from step 1.

You received the following error message: "The Cash Basis Account used is not valid for Company XX "

Defect 1546336: This issue applies if the approvals workflow is enabled for expense reports or purchase orders. When you submitted an expense report or purchase order, the Web Service was invoked multiple times even when it should have been invoked only once.

Defect 1563344: When you used the migration script to migrate data from Vision to Vantagepoint, the temporary database ran out of space on your hard drive and you received an error message.