The Responsibility of Business Owners in Filing 1099 and W2 Forms

Business owners have certain obligations, and to be particular, one must be a step ahead of the annual tax season, including the required filing of 1099 and W2 forms, for independent contractors and employees, respectively.

In keeping up with the mandatory filing of forms, one must be able to stay on track of certain dates to ensure that inconveniences caused by missed deadlines will be avoided. To make sure that you will be on track of your obligations, listed below are some tips that will guide you throughout the year.

Stay Ahead in Handling the Works Involved with 1099 Filing

 

Throughout the year, you can skip the rush by securing a W-9 form for every independent contractor, freelance workers, consultants and sole proprietors. Make them fill out the form and handle TIN and certification requests. The W-9 form is important in securing the legal name of the recipient, address, and Taxpayer Identification Number, all of which include information required in completing the 1099 form.

File Forms by November of Applicable Tax Year

 

You don’t have to wait for January of the following year to file your forms. As long as all work has been completed by the independent contractor for a particular calendar year and all required data is acquired, you can get a head start by taking advantage of new 1099 forms and early e-filing.

Distribute 1099s and W-2s to All Covered Recipients by January 31

 

In cases when January 31 falls on a weekend of a holiday, deadline will be in the next business day. Deadline applies, both for paper filing and efiling.

Furnish Recipient Statements by February 16

 

All recipient statements for 1099-B, 1099-S and 1099-MISC forms must be furnished (this applies when amounts are indicated in box 8, “substitute payments in lieu of dividends or interest,” or box 14, “gross proceeds paid to an attorney”) on or before February 16.

File 1099s with the IRS and W-2s with the SSA by March 31

 

1099s and W-2s must be filed on or before March 31. Again, if the date falls on a weekend or federal holiday, the deadline is moved to the next business day. However for paper filing, IRS and SSA deadline is earlier, which is February 29.

Correction of Forms Must be Done by Until the End of March

 

For erroneous data entered on your forms, correction can be done until the 31st of March, since forms are electronically submitted to the IRS/SSA.

Correction of Forms Must be Done by Until the End of March

For erroneous data entered on your forms, correction can be done until the 31st of March, since forms are electronically submitted to the IRS/SSA.

  • When e-filing, the summary data is gathered and automatically communicated along with your 1099s and W-2 forms so you can cross off 1096 and W-3 transmittal forms required by the IRS and SSA on your list.
  • Be particular about how an independent contractor is differentiated from an employee is.
  • Recipient options with e-file allows you to provide their email addresses for a safe online access to forms or get forms printed and transported via 1st class mail.

BEAT YOUR DEADLINES.

File 1099 and W2 forms through e-Filing Plus Now!