JD Edwards Crisis Averted: Ensuring 1099/W2 Compliance Despite Missing Critical Oracle Updates
JD Edwards Managed Services Success Story
The Client
Early in 2020, the Internal Revenue Service (IRS) announced they were changing 1099 contractor reporting requirements. There were also Coronavirus Aid, Relief, and Economic Security (CARES) Act requirements that changed for tax filing as well. At the same time, Oracle sent out an email announcement that essentially said that if customers weren’t using JD Edwards World A9.4, they would not be sending year-end updates. But with everyone reacting to the financial and operational issues associated with the pandemic, both the IRS announcement and the Oracle announcement slipped through the cracks.
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The Goals
- Meet the new reporting standards using JD Edwards standard files and processes without introducing the complexity of third-party forms packages
- Send the required forms to recipients
- File with the IRS by the regulatory deadlines
Key Results
Compliant with the new regulations and met the filing deadlines
Complete year-end processes for preparing and filing W-2s and 1099s
Project Highlights
The Challenge
Beginning in December, when clients were planning for year-end reporting for 1099s and W2s, they began to go through what would have been the normal JD Edwards update process:
- Go to the Oracle support website
- Grab the update and download it
- Install the update
- Process 1099s and W2s
Only this year, there was no update available. As announced earlier in the year, if customers were not on Premier support, there were no year-end updates for the version of JD Edwards they were using.
Given the chaos and confusion the whole world was facing with the pandemic, missing the notice in the early spring of 2020 wasn’t an uncommon scenario. To add insult to injury, companies would also be facing penalties associated with not meeting the mandated IRS reporting deadlines.
The Solution
There was a push in November and December of 2020, by a number of clients, to determine how to meet these reporting requirements. Briteskies marshalled their team of financial experts and technical consultants to troubleshoot and develop a working solution that was tailored to each client’s accounting protocol that allowed them to meet the IRS requirements, within the mandated timeframe.
The Result
Collaboration and creativity saved the day. The team at Briteskies was able to work hand-in-hand with clients to problem-solve and develop an application-specific approach that met the mandated reporting needs. Ultimately, each client was able to provide 1099s, W2s, and CARES Act reporting within the required deadline.
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Restored System Stability and Support: By completing the A9.4 development and upgrade, the client successfully retained critical Oracle support, ensuring access to necessary security patches and technical assistance, effectively eliminating the risk of operating on an obsolete system.
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Unlocked Remote Workforce Capabilities: The project directly enabled the client's continuity plan, allowing employees to transition seamlessly to remote work during the pandemic and beyond, ensuring business operations remained uninterrupted regardless of location.
Key Project Benefits
- Clients were compliant with the new regulations and met the filing deadlines, avoiding IRS penalties
- Users could follow their normal year-end processes for preparing and filing W-2s and 1099’s because the changes were made within JD Edwards
The Details - How We Did it
Honestly, the biggest challenge was figuring out the IRS regulations. Making the code changes to the programs was the easy part.
- Nathan Giri - Senior Developer, Briteskies
