Small Business 1099 & W2 Filing Guide - ZBPforms.com

1099 & W-2 Filing Guide for Small Business

Choose the right filing method, right forms, and get everything done on time, easily. 

  • Efiling Requirement Changes
  • 1099 Changes and Filing Guide
  • W2 Changes and Filing Guide
  • E-filing Options for 1099 & W2
Small Business 1099 & W2 Filing Guide - ZBPforms.com

1099 Changes for 2023

1099 Form Due Dates for 2023. 

1099NEC forms must be mailed to recipients and e-filed or mailed to the IRS on or before January 31, 2024.

For other 1099s, file by February 28, 2024, if you file on paper, or by March 31, 2024, if you file electronically.

The due dates for furnishing payee statements remain the same.

New E-Filing Requirements

For the 2023 tax year, businesses with 10+ W2 and 1099 forms, combined, per EIN, are required to electronically file Copy A forms with the IRS or SSA. Learn More >

DiscountEfile.com helps you get it all done, easily!

 

1099 E-Filing Requirement Changes

The new e-file threshold for the 2023 tax year is only ten (10) W2 and 1099 forms, combined, per EIN. 

For example, if your business has to file 5 1099NEC forms and 5 W2 forms, you must e-file the red Copy A forms with the IRS and SSA by January 31, 2024.

This applies to ANY combination of 10 or more of ANY type of 1099 or W2 forms, except correction forms. Here is a great article with insights to the changes.

Penalties apply if you don’t – $60 per form if you file on time and up to $310 per form if you file late. 

Get the Details

Dateless 1099 Forms

Many 1099 Forms Now Require You to Fill in the Year

The new dateless format introduced in 2022 requires you to fill in the year on each form. A software update is required. The dateless 1099 forms are:

  • 1098
  • 1099A
  • 1099C
  • 1099CAP
  • 1099DIV
  • 1099G
  • 1099INT
  • 1099K
  • 1099LTC
  • 10999MISC
  • 1099NEC
  • 1099OID
  • 1099Q
  • 1099S
  • 1099SA

These forms have minor formatting changes to accommodate the new format.

1099-NEC Form Changes

1099-NEC are used when business taxpayers to report payments of nonemployee compensation.

You must must complete this form to report any payment of $600 or more to a payee such as a contractor, freelancer, attorney and others.

1099-NEC forms are now dateless.

You must now fill in the year on each 1099NEC form for 2022. If you use software to print forms, you need to update your system to accommodate this important change.

1099-NEC Form Changes for 2023

There are no major changes to 1099NEC forms for the 2023 tax year.

Generally, this form is due by January 31st – to be mailed to the recipient and mailed or e-filed with the IRS.

There is no automatic extension for this form but may be available under certain hardships.

Nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the TIN provided was incorrect.

More information about this form can be found here: Form 1099-NEC, Nonemployee Compensation

1099-MISC Form Changes

2023 Changes to 1099-MISC Forms

The dateless format for 1099MISC forms was introduced in 2022. You must fill in the year on each form. A software update is required.

There are no other major changes to 1099MISC forms for the 2023 tax year.

1099 Rules that can make or break you

Here is a great article from Entrepreneur Magazine about who is required to file 1099 forms and why, the exceptions and how you can be proactive about 1099s to protect your business from large penalties. 

Read the Article

W2 Changes for 2023

Due Date for W2 Copy A

January 31, 2023 is the deadline for W-2 Forms for tax year 2023.

This includes: W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3 and W-3SS with the SSA. The due date is now January 31 whether you file using paper forms or electronically.

You no longer get more time to e-file or print and mail copies to the SSA.

Possible New E-Filing Requirements

The IRS is considering changing the e-filing threshold to 100+ total 1099 & W2 forms per payer. They will make this decision by November. Stay tuned to Discount Tax Forms for details…

DiscountEfile.com helps you get it all done, easily!

W2 E-Filing Requirement Changes

The new e-file threshold for the 2023 tax year is only ten (10) W2 and 1099 forms, combined, per EIN. 

For example, if your business has to file 5 1099NEC forms and 5 W2 forms, you must e-file the red Copy A forms with the IRS and SSA by January 31, 2024.

This applies to ANY combination of 10 or more of ANY type of 1099 or W2 forms, except correction forms. Here is a great article with insights to the changes.

Penalties apply if you don’t – $60 per form if you file on time and up to $310 per form if you file late. 

Get the Details

Good News!

There were no major changes to W2 forms for 2023.

1099 Filing Guide

1] Which 1099 Form to Use

1099-NEC forms have replaced 1099-MISC

You must file a 1099NEC  if you’ve paid $600+ to an individual who is not an employee during the tax year.

There are many other types of 1099 forms used for other purposes. Here is a list.

1099-NEC Filing Requirements

2] Number of 1099 Parts

The number of parts you need is based on which government agencies you need to file with – Federal, State, and/or City.

Typical 1099 Parts:
– Copy A: Federal Government (Red Copy)
– Copy B: Recipient Copy
– Copy C/2: Payer or State Copy

Order 1099 Form Sets

3-Part States

AK, CA, FL, GA, IL, IN, IA, KY, LA, MD, MI, MO, NV, NH, NM, NY, OR, SD, TN, TX, VT, WA, WY

4-Part States

AL, AR, AZ, CA, CO, CT, DE, DC, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MO, MS, MT, NE, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, UT, VT, VA, WV, WI

5-Part States

AL, AZ, CO, CT, DE, HI, ID, ME, MA, MN, MS, MT, NE, NC, ND, OH, OK, PA, SC, UT, WI

3] Type of Paper

Official IRS 1099 Tax Forms for 2023, Preprinted Laser Forms - zbpforms.com

Preprinted 1099 Forms

Preprinted forms are for software that only prints the data. Boxes are preprinted on the form and recipient instructions are preprinted on the back.

1099 Blank Perforated Paper for 2up, 3up and 4up 1099 Form Printing, Optional Instructions on Backer - DiscountTaxForms.com

Blank 1099 Paper

Blank perforated 1099 paper is for software that prints form boxes and data. Recipient instructions can be printed on the back. If they aren’t, you must supply them per IRS regulations.

1099 Carbonless Continuous Multi-Part Tax Forms for 2023 - zbpforms.com

Carbonless 1099 Forms

Continuous, pin-fed 1099 forms can be used with typewriters or dot-matrix printers. All parts are ‘stacked’ on top of each other for fast printing and mailing.

1099 Pressure Seal Forms, Blank & Preprinted Pressure Seal 1099 Forms for Recipients - DiscountTaxForms.com

Pressure Seal 1099 Forms

Ideal for printing a large volume of 1099 forms with pressure seal systems.

1099 Envelopes for 2up 3up 4up 1099 Tax Forms, Important Tax Return Documents Enclosed, Security Tinted - DiscountTaxForms.com

Don’t Forget 1099 Envelopes

Use compatible envelopes to ensure the recipient and return addresses show through the windows correctly.

1096 Transmittal Tax Forms for 2023 1099 Copy A Filing - zpbforms.com

1096 Transmittal Forms

When mailing 1099 Copy A forms to the IRS, include one 1096 form for each payer. This form summarizes all of the 1099-MISC submitted by the payer.

W2 Filing Guide

1] Government Requirements

The number of W2 parts needed depends on which government agencies you must report to.

Federal Only = 4 Parts
Federal & State = 6 Parts
Federal, State & City/Local = 8 Parts

4-Part States

AK, FL, NV, NH, SD, TN, TX, WA, WY

6-Part States

AL, AZ, AK, CA, CO, CT, DC, DE, GA, HI, ID, IA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, ND, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, WV (add extra parts for city withholding taxes)

8-Part States

AL, DE, KY, MD, MI, MO, NY, OH, PA

2] Software Functionality

Your W-2 Software will determine which forms to use.

Each software supports different tW-2 layouts. First, check to see if you should use blank W-2 paper or preprinted forms, then determine which layout you need. Many systems support Official W2 Forms, as well as 2up, 3up or 4up condensed formats.

The best way to ensure compatibility is to print a sample form and use it to compare when shopping.

W2 tax form sets for 2023 with envelopes and employer and employee W-2 form copies - zbpforms.com

Preprinted W2 Forms are for software that prints the only the employee data. Boxes are preprinted on the form and employee instructions are preprinted on the back.

W2 Blank Perforated Paper 2up, 3up, 4up and Universal Formats, Compatible W2 Envelopes - DiscountTaxForms.com

Blank W2 paper is for software that prints the boxes and data. Employee instructions are often printed on the back. If they aren’t, you must supply them per IRS regulations.

Don’t Forget W2 Envelopes

Use compatible envelopes to ensure the employee and return addresses show through the windows correctly.

W-3 Transmittal Forms

When mailing W2 Copy A forms to the SSA, include one W3 form for each payer. This form summarizes all of the W-2 forms submitted by the employer.

2up W-2 Forms

2 Forms per page; ideal for 4pt forms
Print 1 sheet for each employee:
Copies B & C

NOTE** All Government Copies MUST be printed in 2up layout.

3up W-2 Forms

3 Forms per page; ideal for 6pt forms
Print 1 sheet for each employee:
Copies B, C, 2

4up W-2 Forms

4 Forms per page; ideal for 8pt forms
Print 1 sheet for each employee:
Copies B, C, 2, 2