1099 & W-2 Filing Guide for Small Business
Choose the right filing method, right forms, and get everything done on time, easily.
W-2 Changes for 2019
Due date for filing with SSA. The due date for filing 2018 Forms W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3, and W-3SS with the SSA is January 31, 2020, whether you file using paper forms or electronically.
Extensions of time to file. Extensions of time to file Form W-2 with the SSA are no longer automatic. You may request one 30-day extension to file Form W-2 by submitting a complete application on Form 8809, Application for Extension of Time To File Information Returns, including a detailed explanation of why you need additional time and signed under penalties of perjury. The IRS will only grant the extension in extraordinary circumstances or catastrophe.
For more information, see the Official W2 Instructions for 2019.
Employee stock options are not subject to Railroad Retirement Tax.
In Wisconsin Central Ltd. v. U.S., 138 S. Ct. 2067, the U. S. Supreme Court ruled that employee stock options are not “money remuneration” subject to the Railroad Retirement Tax Act (RRTA). If you are a railroad employer, do not withhold Tier 1 and Tier 2 taxes when employees covered by the RRTA exercise stock options. You still must withhold federal income tax on taxable compensation from railroad employees exercising their options.
Box 9 Verification code removal
The Verification code pilot program has ended. Box 9 is no longer in use.
Disaster tax relief.
Disaster tax relief is available for those affected by recent disasters.
Failure to file and failure to furnish penalties and penalties for intentional disregard of filing and payee statement requirements have increased due to adjustments for inflation. The higher penalty amounts apply to returns required to be filed after December 31, 2019.
1099 Changes for 2019
1099-MISC Due Dates
For 1099-MISC Forms for Contractors
Public Law 114-113, Division Q, section 201, requires Form 1099-MISC to be filed on or before January 31, 2020, when you are reporting non-employee compensation payments in box 7.
Otherwise, file by February 28, 2020, if you file on paper, or by March 31, 2020, if you file electronically. The due dates for furnishing payee statements remain the same.
This due date change initially occurred in 2016.
For All Other 1099s
To recipients by January 31, 2020.
Copy A to IRS by February 28, 2020 for paper forms or March 31, 2020 if e-filing.
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.
1099 Form Changes
1042-S - Box 7c added
1096 - New checkbox for form 1098F; new filing address added for UT; minor verbiage changes to instructions
1098 - Box 11 added; Mortgage Acquisition Date Box 2 heading revised
1099B - Box 3 heading changed and 2nd checkbox added; Box 12 heading change; Box 3 is now box 12, New Info requested box 3.
1099G - 2nd TIN notification checkbox added to copy A & C
1099PATR - New placement and headings; boxes renumbered
Deadlines for 1099 & W-2 Filing
January 31, 2020
All 1099 Recipient Copies B / C / 2 mailed to recipient
W-2 Employee Copies B / C / 2 mailed to employees
1099-MISC for contractors - Copy A forms to IRS (mailed or e-filed)
W2 Copy A to IRS (mailed or e-filed)
February 28, 2020 - Paper 1099 Copy A forms to IRS
1099 Form Copy A, along with 1096 Transmittals, mailed to the IRS for all 1099 forms except 1099-MISC with non-employee compensation, which are now due January 31.
March 31, 2020 - E-file 1099 forms with IRS
1099 Forms E-filed to the IRS, except 1099-MISC with non-employee compensation, which are now due January 31.
Easy 1099 & W-2 Starts with Your Software System
Your accounting software is the first step to filing 1099 & W-2 Forms the easiest way.
You have 3 main options.
Your Accounting Software
If your accounting software prints 1099 & W-2 Forms, you can purchase compatible forms and envelopes.
The program will summarize all of the wage data for the year, then print recipient and government copies.
Important: Forms must the layout used in your software.
If your accounting software does NOT print the forms, specialized 1099 & W-2 software is ready to help!
Import wage data, or manually enter it into the system. Then, print the 1099 or W-2 forms you need. E-filing is also typically available.
Be sure that forms are compatible with the layouts programmed into the software.
The easiest way to file less than 50 forms is online! Discount E-file takes care of printing and mailing recipient copies for you, plus e-files with government agencies.
You simply import or type in data and we do the rest!
E-Filing is required for 250+ forms, but you can e-file as few as one!
1099 - Choosing the Right Forms
Select the right type of 1099, in the right format, for easy printing and mailing.
1] Which 1099 Form to Use
1099-MISC forms are the most common for construction companies. They are used to report payments made to subcontractors and consultants.
You must file a 1099MISC 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.
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.
- Copy A: Federal Government (Red Copy)
- Copy B: Recipient Copy
- Copy C: Payer Copy
- Copy D/1/2: State and Local Filing
AK, CA, FL, GA, IL, IN, IA, KY, LA, MD, MI, MO, NV, NH, NM, NY, OR, SD, TN, TX, VT, WA, WY
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
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
Preprinted 1099 Forms are for software that only prints the data. Boxes are preprinted on the form and recipient instructions are preprinted on the back.
Blank 1099 form 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.
Continuous, pin-fed 1099 forms can be used with typewriters or dot-matrix printers.
Don't Forget 1099 Envelopes
Use compatible envelopes to ensure the recipient and return addresses show through the windows correctly.
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.
W-2 - Choosing the Right W2 Forms
Select the right type of W-2, in the right format, for easy printing and mailing.
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
AK, FL, NV, NH, SD, TN, TX, WA, WY
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)
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.
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.
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.