Big changes are coming to IRS 1099 reporting for tax year 2025—and if you process 1099s in PeopleSoft, you’ll need to act. Rather than another step-by-step setup guide, this blog highlights the real questions and challenges PeopleSoft customers shared in our recent Oracle webinars.

For the detailed setup instructions and full guides, check out the official docs listed at the end of this post.

At a Glance: What’s New?

  • Excess Golden Parachute Payments move from 1099-MISC (Box 14) to 1099-NEC (Box 3)
  • New PeopleSoft 2025 Withholding Types: 2025M (MISC) and 2025N (NEC)
  • Changes in reporting, form handling, and electronic filing

Top Customer Questions: 2025 PeopleSoft 1099 Updates

1. Do I really need to add 2025M & 2025N? We don’t handle Golden Parachute Payments.

Yes. Even if you never report golden parachute payments, you must add 2025M and 2025N withholding types. This is essential for successful 2025 reporting—otherwise, your Copy B forms, or electronic files won’t generate correctly. (See Knowledge Article KB417486 for details.)

2. Can’t I just update or rename 1099M/1099N instead of creating new types?

No. The PeopleSoft 1099 process is hardcoded to look specifically for 2025M and 2025N. Keep your old types for three years—for any corrections or historical reporting—but create new ones for 2025 onward.

3. How do I update all my suppliers and vouchers? Is there a delivered script?

Oracle does not deliver update scripts for 2025. However, the support documentation includes sample SQL SELECTs to help you identify what needs updating. Many organizations use these SQLs to build their own automation. For large numbers of records, scripting is the best practice.

4. Are there best practices for using Effective Dates or Correct History in this setup?

You can add new types using:

  • A new Effective Date (recommended: 1/1/2025)
  • Or “Correct History” on existing rows

On new dated rows, you don’t need to re-add 1099M/1099N; keep those on old rows for older years/corrections.

5. Is this for all 1099-suppliers, or only those impacted by the form change?

Update all active suppliers flagged for 1099/withholding. It’s not just about golden parachute payments or deferred compensation.

6. What’s changed with electronic versus paper filing?

For 2025, Excess Golden Parachute Payments can’t be submitted via the FIRE system. Oracle will deliver a printable “Copy A” for IRS paper filing. If you file more than 10 forms, request a waiver with the IRS.

7. Can we test setup before all patches are out?

Yes. All setup steps can be started and completed before patches are released, but you must have the year-end PRP applied before running the final 1099 reports/processes.

8. What patches or bugs do I need?

  • Phase 1: Bug 38342920 (prerequisite)
  • Phase 2: Patch 38652909: 1099 UPDATE FOR 2025 – 1099-MISC FORM REVISION DATE AND 1099 JOB WITHHOLDING PROCESS OPTION ISSUES
    • Includes the following bug fixes:
      • Bug 38479968 – 1099 UPDATE FOR 2025
      • Bug 38540366 – PRESSURE SEAL FORM FOR 1099-G
      • Bug 38600273 – SUPPORTING BUG FOR BUG 38479968 – 1099 UPDATE FOR 2025
      • Bug 38603341 – SUPPORTING BUG 2 FOR BUG 38479968 – 1099 UPDATE FOR 2025
      • Bug 38652909 – 1099 UPDATE FOR 2025 – 1099-MISC FORM REVISION DATE AND 1099 JOB WITHHOLDING PROCESS OPTION ISSUES
  • APX2020 report: Bug 38576864 (KB841099)
  • PeopleSoft PUM Image 55 (Dec 1, 2025) will include all of these
  • PeopleSoft 1099 Analyzer: KB162676

Upgrade now or extract the patches you need; just do the setup before testing 1099 jobs.

9. Can I automate supplier/voucher updates?

There’s no delivered update script, just the sample SELECTs in the Knowledge Docs to help you identify records. If you want Oracle to automate this in the future, vote for the enhancement: Oracle Ideas: PeopleSoft 1099 Automation.

10. Anything else to watch out for?

  • Double-check Effective Dates: For new types, use 1/1/2025.
  • Test in non-production first.
  • Retain old types for 3 years for corrections.
  • Consult the PDF slide deck and KM Docs for the most up-to-date info.

Resources & Next Steps

Documentation:

Get Help:

Wrap-up: Plan Ahead, Stay Compliant

The IRS isn’t giving much lead time for these changes—so don’t wait. Start your setup, leverage Oracle’s Knowledge Docs and community resources, and keep your year-end as smooth as possible.