1099-MISC/W-2 Reporting Info

  • How to file a 1099-misc with a missing contractor tax id


    A 1099-MISC form is used to report all income made by a contractor, as long as it is $600 or more for one taxable year. The 1099-MISC form must be filled out by the employer or client who hired the contractor. One of the most important parts of the 1099-MISC form is the Taxpayer Identification Number (TIN), which makes it easy for the IRS to identify which contractor the form is for. Without the tax ID, the 1099-MISC can be harder to file, but it is not impossible.

    Request a W-9 Form be Filled Out

    If you have not already done so, contact your contractor and officially ask them to fill out a W-9 form. A W-9 form will have all personal information including the TIN and Social Security Number of the contractor, which can be used to finish the 1099-MISC form. If you have already given the contractor a W-9 form to fill out, but have not received it back yet, record the dates and efforts you made in trying to solicit this information. The IRS is prepared for this situation so as long as your explanation for why the contractor has not given you a TIN is legitimate, you should not be penalized.

    Use an SSN in Place of a TIN

    If the contractor has not given you a TIN, but has provided you with their Social Security Number, this can be used in place of the TIN. Since the two numbers are similar, the IRS will have no problem identifying the contractor. The only drawback to this is that if the contractor has yet to turn in a W-9 form, neither number will be available for you to use. This is why it is so important to make copies of W-9 forms for each contractor for previous taxable years so that when it comes time to fill out the 1099-MISC forms for this year, you do not have to solicit the same information again.

    File the Forms without a TIN

    Since you will be subject to fines if you choose not to file the 1099-MISC form until all information has been received, it is better to report the forms anyway. Do this by logging all zeros where the tax ID should go. This will alert the IRS that the form is not fully completed and they will then contact you. Once they have contacted you looking for the tax ID number, you can explain how you tried to receive the information from the contractor and show the IRS the records you kept of your attempts. This will show them that it is not your fault and you will not be fined or penalized for your efforts. Doing this makes the process of tax filing a little more stressful, but it is probably your best bet if you are dealing with a contractor who is not willing to comply with you.

    Keep your records and past forms for contractors organized by using an online filing site like wagefiling. Wagefiling will make it easier to fill out basic forms like the W-9 and 1099-MISC, and will send off documents to the IRS as soon as they are done so you are not fined for turning in forms late.

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  • New ACA Form Reporting Requirements

    15 July 2015

    The Affordable Care Act (ACA) is a healthcare reform law. Also known as Obamacare, it aims to provide more Americans with affordable healthcare insurance. The Affordable Care Act is also meant to improve the quality of current healthcare in America. The ACA wants to help Americans by protecting them from insurance companies taking all of their money with low quality healthcare in return. New in 2015 are ACA reporting forms. These ACA reporting forms are intended for employers that provide health insurance coverage for workers.


    Requirements for Reporting Forms


    An employer must provide information for basic healthcare coverage per month for each employee, spouse, and dependent. If an employer has more than 100 full-time workers, they are going to have to do a little extra paperwork; this includes any supplementary information about the amount of coverage and the availability of the healthcare. If a business is small, they will have to fill out both a 1094-B transmittal and 1095-B form. If a big business is reporting ACA forms, they will have to fill out a 1095-C form and 1094-C transmittal. Both the ACA reporting form and the transmittal will be sent to the IRS, which is better explained on the IRS’s website. Employees must provide all information found on a W-9 form in order for the 1095-B or 1095-C forms to be completed, as well as information from spouses and dependents.


    How to Get Started


    Information from all employees is the most important part of an ACA form, which can be taken from individual W-9 forms. The IRS is giving employees a chance to do a test run for the ACA form filing process, which means if you get it done on time, there will be no penalty. An employer should get the Social Security Numbers from all dependents and spouses sooner rather than later because those can be the hardest to receive. An employer must also gather all healthcare coverage for each person each month they are covered. Full-time and part-time employees will have different coverage plans, so make sure all information is recorded.


    Make It Easy


    The IRS wants people to start filing their ACA forms this taxable season since the forms are due next tax season. Make this process easy and painless by filing online with WageFiling. You can keep track of all records and documents you receive, which you can use to complete the necessary items needed to report each ACA form.


    Especially if you are a part of a big business, it can be very difficult to keep track of which employee has finished their W-9 form and what stage you are in the filing process. WageFiling even makes it easy to save documents for your personal records so that if you are in the same situation next year, you can easily find dependent and spouse information, as well as employee information. This will make it much easier for you to finish next year’s ACA reporting.


    Wage Filing is inexpensive and easy to use, which is why it is one of the most popular e-filing websites. If you have any questions about the process or concerns about the security of your documents, contact their customer service representatives or check out the about page today for more information.

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  • How to File a 1099-MISC without Contractor Tax ID


    A 1099-MISC form is a form that records payments of $600 or more made that year to a contractor. One of the elements that need to be present on a 1099-MISC form is the taxpayer identification number. The taxpayer identification number (TIN) is a number used to identify a person for tax purposes. This TIN is used by the IRS to make sure that your taxes have been filed correctly. The TIN is more than just one number, however; the TIN is a bunch of information including the employee’s SSN and other identifiers that will be used when filling out a 1099-MISC form. If your contractor does not provide you with their TIN, there are a few things you can do.


    Have the Contractor Fill Out a W-9 Form


    The W-9 form is used to request the contractor’s TIN and other personal information. Once the W-9 form is returned to the company or employer, the employer can take the contractor’s information from the W-9 form to complete the 1099-MISC. If you have a contractor who has not completed the TIN section of the 1099-MISC form, you can request that he or she fill out a W-9 first so that you can finish the 1099-MISC form on your own.


    Avoid Fines and Penalties from the IRS


    Leaving the TIN section blank on a 1099-MISC form is cause for a fine. If one of your contractors does not provide you with a TIN or SSN, then you will have two options to choose from. You can either wait for the forms to come back completed by the contractor with all the necessary information on it or you can file the 1099-MISC form with the TIN section left blank, but turned in on time. If you decide to file the form late, you will get a fine, but if you file the form on time with the TIN section blank, the IRS will contact you and you can show them that it was done for a reasonable cause.


    Keep Records

    When working with any employee, it is important to keep all of their records in case you need to finish reporting any forms on your own. It is also important to keep records of you requesting that the contractor complete the 1099-MISC form or provide you with their TIN. These records will need to be shared with the IRS after they contact you so that you are not subject to a fine for not completing the forms. As long as you have reasonable cause for leaving the TIN section blank on the 1099-MISC form and proof that you did in fact request the information from the contractor, you will not be penalized.


    Work with WageFiling to make sure the forms for all of your employees are complete and turned in on time. You can even refer back to old W-9 forms and 1099-MISC forms from your WageFiling account in case you run into trouble with one of your contractors. When working with WageFiling, make sure you save all documents for your own records so that you do not need to go through the same thing next year.

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  • Form 1099-B: What You Need to Know

    1 July 2015


    A 1099-B form is a form that is issued by a broker in order to give an overview of all transactions made regarding stocks, bonds, mutual funds, and securities, as well as any gains or losses. All of these stock transactions must be reported to the IRS in order to successfully file your taxes. A 1099-B form must be reported for each sale your stock transactions make. If you choose to create a consolidated tax statement, it is possible that you would see more than one sale if that is what your records show. Compare your records with the 1099-B form so that you know all information is correct.


    What is Included in a 1099-B Form?


    A brokerage firm or barter exchange must report all stocks, contracts, commodities, securities, and anything else that he or she has sold for liquid cash. Each transaction must be reported on its own individual form for the IRS. The guidelines for a 1099-B form have change slightly in the past few years; for example, both short-term and long-term sales must be reported, which was not the case a few years earlier. Brokers and barter exchanges should remember that they do not have to report anything from organizations who give to others, IRAs, corporations, and the like, all of which is explained on the IRS’s government website.


    Why Do I Need a 1099-B Form?


    The IRS requires investors and brokers to report the original value, or cost basis, of financial securities for the last taxable year. A cost basis is defined as the value of an asset, such as stocks, bonds, mutual funds, or commodities that needs to be reported in order to file taxes. It is important to report the exact amount of expenses and income for the most recent taxable year; otherwise, you could end up owing the IRS too little or too much in taxes. Just like any other form that needs to be filed for tax purposes, the 1099-B form requires the broker or barter exchange to provide information about each client including their Social Security number and sales made with that person.


    Forgetting to Report a 1099-B Form


    If you are a broker, you will send the 1099-B form to each of your clients for them to fill out for you. If you are a client, be prepared to fill out a 1099-B form for each taxable year you are working with your broker. It is important to get your 1099-B form turned in before the deadline, however if you forget to report your 1099-B form or are delinquent in returning it back to your broker, the IRS has guidelines on how to deal with that. The IRS requests that anyone who has forgotten to file a 1099-B form fill out an amended tax return using the 1040X form. This form is used to report the correct amounts that would have originally been on your 1099-B form. You should turn in the amended tax return as soon as possible in order to avoid any penalties or additional fines from the IRS.


    When you are ready to file your 1099-B form, use WageFiling to make it easy for you. With a simple and user-friendly interface, WageFiling can help you upload, fill in, and send off all the documents you will need to report for the most recent taxable year. You can also look back on old forms and save them for your records so that you always stay organized and in control.

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  • 1042-S reporting: What is it?

    25 June 2015

    A 1042-S form is a form issued by the IRS used to report payments made to foreign employees or students who are subject to income tax withholding. Anyone who is subject to income tax withholding is still help responsible for turning in a 1042-S form even in the event of a tax exemption or if no payments were issued. The 1042-S form, also known as the Foreign Person’s US Source Income Subject to Withholding, is used to report income and income tax withholding for the most recent taxable year.


    Who Needs One?


    Foreign employees and international students who are not considered residents, but rather non-resident aliens working in the United States must fill out a 1042-S form because they are subject to income tax withholding. Any document ranging from rent and income to pensions and royalties must be reported on a 1042-S form for each individual non-resident alien.


    For students, anything related to university expenses such as scholarships, grants, awards, or fellowships that were not considered part of their income must be reported on a 1042-S form. A 1042-S form can be considered similar to a W-2 form that American employees must fill out with their TIN and SSN, as well as other personal information in order to complete tax filing.


    What to Do


    The 1042-S form can be filed as a paper copy or electronically, however doing it electronically will keep your record straight and will be much faster to complete. In addition to the general information that could also be found on a W-2 form for Americans, those filling out a 1042-S form must also include the reporting of payments made and amounts withheld under what was previously known as the Foreign Account Tax Compliance Act (FATCA). This general information will usually include material such as taxpayer identification number for foreigners, Social Security Number, date of birth, and other additional information. This is a new addition to the 1042-S form, which was added at the beginning of 2014.


    The 1042-S form also requires that the name and employer identification number (EIN) of the withholding agent who withheld the tax from the foreign employee be reported on their 1042-S form. A withholding agent is someone who has control of the income of a foreign employee who is subject to income tax withholding.

    Common Mistakes to Avoid


    Whether this is your first time filling out a 1042-S form or not, remember to take your time in order to avoid common mistakes. You should read all information so as not to skip over anything important or leave any part blank that could result in a penalty.


    Be honest, as failing to report proper income amounts or additional information can also result in a fine or penalty. Lastly, in order to complete your 1042-S reporting form, rely on previous forms that you had filled out for your employer to make the process go a lot easier.


    Filing your 1042-S form online is easy with WageFiling. WageFiling is an e-filing website that helps you keep all reports and documents in one place so that you can refer back to old forms and use them to fill out new ones. WageFiling makes it easier to file your taxes and even sends off the forms once they are completed so you do not have to worry about printing them out and mailing them yourself.

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  • 4 Reasons to Use a Web-Based 1099/W-2 Reporting Service

    17 June 2015

    Reporting services are an important part of the tax filing process. Without this step, you could lose some direction on where your funds are going. A reporting service is meant to help a company finish their tax filing process in a simple and organized way so that in the future past records are easily accessible for both the company and the IRS or the SSA. Reporting services that are web-based have many more benefits than reporting services that cannot be done online.


    Faster Delivery

    When you file your W-2 and 1099-MISC forms, you should also be reporting the files to the IRS and the SSA in order to keep track of money paid. If you choose to do your reporting with QuickBooks, you are adding in an extra step to your tax filing process. QuickBooks does not offer a reporting feature for submitting these forms to the IRS or SSA. To do so with QuickBooks, a person would have to go to an office supplies store, buy specific QuickBooks forms and special envelopes, and then mail the forms to the recipients, the State, and the IRS. On the other hand, Wage Filing is totally paperless and easy to use; you can do all of your filing and reporting at once, which means the delivery of documents is received much faster. You will not have to worry about paying a penalty if you forget to send the reporting forms in either because Wage Filing will make sure they are sent as soon as you are finished.


    More Flexible

    With a web-based reporting system, you have a few more options than with QuickBooks W-2 reporting. After entering and filing your forms, you have the option to print the forms from your computer instead of on special paper and envelopes. Then your forms are e-filed to the IRS or SSA as soon as you are ready to purchase and send them. After all the hard work has been done, you have the option to save reported files for your own personal records by saving them as a PDF or document, or printing them out. This is a more flexible way to get your taxes filed instead of having to stick to a certain process. Wage Filing also lets you save information so that once you enter forms the first time you do not have to do it all over again next year.


    Cost Efficient

    QuickBooks 1099-MISC forms can get expensive to file if you are constantly making a trip to your office supplies store. Because it requires you to buy special envelopes and print out all documents, you are spending money on the paper, stamps, envelopes, and filing fee. File with Wage Filing instead and save yourself a lot of money, as well as being kind to the environment by choosing a paperless method.


    Easy to Use

    Unlike 1099-MISC QuickBooks forms, Wage Filing makes it easy to file your taxes and report the forms using a web-based reporting service. In addition to having a user-friendly website that is easy to navigate, Wage Filing walks users through the entire process. After creating an account online, you can enter the forms accordingly, as well as file a correction, file your forms from past years, and check your Taxpayer Identification Number (TIN). They also offer links to first-time users about how Wage Filing works and an FAQ page in case you have questions about the process.


    Web-based reporting systems have been proven to make tax filing a much simpler process without all of the stress. Start your tax filing today with Wage Filing; they will be able to help you should you be stuck on any forms, as well.

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  • The Differences between an Employee and a Contractor: Tax Forms

    10 June 2015

    Knowing how to tell the difference between issuing a W-2 form and a 1099-MISC form can be a little confusing, especially if you are part of a company that deals with many different types of workers. However, knowing which worker is an employee and which one is a contractor is important for your business so that you know which form to send in for each. There are a few differences between an employee and a contractor; all of which will make it easier on you to understand the tax filing process.


    The Type of Work Issued

    An employee will work under one boss and will do his or her job based on the duties they are expected to perform. The employee’s boss will provide on-the-job training, as well as dictate what the employee’s responsibilities are. The contractor works independently from the company and will usually have many clients or employers at once. A contractor can move from company to company when needed and sets his or her own work hours. Contractors can be hired to do extra side work for a business without receiving the benefits given to an employee, such as health benefits or time off. A contractor can also be considered his or her own boss, which means they follow their own guidelines and do not take direction from the company that hired them unless stated otherwise.


    Ongoing Service

    Whether an employee is working for a company full time or part time, they are putting in ongoing service to a business with set hours and hourly pay or annual income. A contractor provides service for a definite amount of time, after which their services to the company are done. They can come back to the same company for more work, but it is considered a new service contract and not a continuing one. Contractors will be paid either all at once or on commission, unlike most employees.



    An employee will have no independence from the company, which means that they are responsible for all of their actions. An employee’s actions and attitude will reflect back onto the business, so it is important that they act the way the company wishes to be seen by others. A contractor is completely independent from the company they are working for, which means they are not responsible for any actions beyond the service they have provided. However, that does not mean that they can treat the company that hired them badly; the quality of their work will reflect the company’s image.



    It is common for a company to reimburse an employee for any business related expenses. These expenses usually include travel expenses like food, lodging, and transportation, among other things. Business expenses can be reimbursed for the company, which can end up benefitting them. As long as business expenses stay within the IRS guidelines, a company can reimburse the employer or employees for any expenses made and collect the deductible. A contractor is not working under the company, however, so he or she must pay their own fees.


    Using these differences can help a company figure out which form to fill out for their employee and contractor. Once they are ready to file the forms, they can go to Wage Filing’s website for a systematic process.

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  • Real Estate Agents and Their Assistants: What are Your Financial Obligations?

    3 June 2015

    The real estate market is an ever-growing business with clients always looking for a real estate agent to help them find a home or office. One of the best features of being a real estate agent is that there is always a need for an agent to help a person look for the right property, especially as clients are becoming increasingly frugal with their money. However, it isn’t always easy to find a real estate position, which can be especially true for those without much experience. With that said, real estate agents are starting to hire assistants to help them take on some of the workload. Real estate assistants can be at the agent’s side as they show potential buyers properties, as well as assist with paperwork.



    Both the real estate agent and their assistants have financial obligations that they must adhere to in order to keep their business up and running. One of the most important obligations real estate agents must uphold is accounting. They must account for all documents and transactions made between agent and client; this is where the help of the assistant might come in handy. If a real estate agent is the one making the sale, the assistant can take the time to record all transactions for tax purposes. The real estate agent must also track all funds and account for their location. They cannot combine business funds with client funds, or take client funds and add it to their personal account, which is considered unethical.



    Documenting all transactions and tax deductions keeps a real estate agent and his or her assistant organized and able to easily recall past records if needed. The IRS has guidelines for deductions on taxes, which must be followed in order for wage tax filing to be done correctly. If a real estate agent hires an assistant, he or she must document any payments made for their records and report all payments to the IRS on a 1099-MISC form. The agent must also report any commission payments made to an assistant since there will be times when they will be of assistance beyond the office, at functions like open houses and showings.


    Wage Tax Filing

    Once all documentation has been organized, it is time for the real estate agent to file 1099-misc for real estate assistant. Agents can do so online at Wage Filing’s site, which makes it easy for small businesses to prepare and file taxes quickly and without stress. Real Estate Payroll information can instantly be entered online before the business chooses to fine 1099-misc real estate agent. Then they can print an IRS-approved copy of their documents for their personal records and send off the federal tax forms for the low price of $3.49. Wage Filing is the only owner-operated e-filing system for 1099-MISC and W-2 forms.


    Financial obligations for real estate agents and their assistants also include monthly expenses, as well as expenses that must be made in order to get their real estate business up and running. That being said, it does not have to be difficult to get taxes filed. With Wage Filing, the time it takes to file taxes is cut in half thanks to their cutting-edge technology, which does all of the hard work itself. They take the stress right out of the tax filing process.

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  • 1099-MISC Deadline is March 31

    23 March 2015


    Avoid the real March Madness and file your 1099-MISC to the IRS before or on March 31, 2015 to avoid late fees and penalties.

    If you fail to file a correct 1099-MISC return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a 1099 return, or you include incorrect information on a return. The 1099 penalty also applies if you file on paper when you were required to file 1099s electronically, you report an incorrect TIN (Tax Identification Number) or fail to report a TIN, or you fail to file paper 1099 forms that are machine readable. The amount of the 1099 deadline penalty is based on when you file the correct information return. The penalty is:

    $15 per information return if you correctly file within 30 days (by March 30 if the due date is March 2); maximum penalty $75,000 per year ($25,000 for small businesses).

    $30 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $150,000 per year ($50,000 for small businesses).

    $50 per information return if you file after August 1 or you do not file required information returns; maximum penalty $250,000 per year ($100,000 for small businesses).

    So keep that winning bracket money in your pocket and file now!

    Scott Zubrickas profile
    Scott Zubrickas has 20 years of experience working directly with the IRS on form regulations, requirements and electronic filing as an Authroized e-file Provider. He is a Member of WageFiling, LLC in Grand Rapids Michigan and handles business development and IRS compliance updates. To keep up on W-2/1099-MISC reporting changes that effect your business without all the legal jargon you can follow Wagefiling on Facebook and Twitter

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  • Do we file a 1099-MISC to an LLC or large Corporation?

    31 January 2015


    Who To Send A 1099-MISC Form To?
    Posted by Tom Taulli (@ttaulli) operates MasterCFO, which provides income tax preparation and tax problem resolution for individuals and businesses.

    I recently got the following question from a tax client: “Last year I paid $1,000 to someone to build my website. But his business is an LLC. I heard that I do not have to send a 1099-MISC form to a corporation. So I have no requirement here?”

    Nope. He must send a 1099-MISC form to the developer.

    As you can see, the rules can be confusing – and sometimes far from clear cut.

    So what to do? Well, here are the steps I go through with a client:

    Step 1: The payment must be $600 or over per year for services, not goods, and it should be done in the course of your trade or business.

    Example: Suppose you hire a contractor for $10,000 to remodel your house. In this case, there is no need to send out a 1099-MISC form because the work was for personal purposes. However, if it was to remodel your office, then you will need to send one out.

    Step 2: Generally you do not have to report 1099-MISC forms to C Corporations and S Corporations. But there are some exceptions:

    Medical and health care payments (such as for pre-employment physicals)
    Fish purchases for cash
    Attorney’s fees
    Gross proceeds paid to an attorney (such as for legal settlements)
    Substitute payments in lieu of dividends or tax-exempt interest
    Payments by a federal executive agency for services

    And what about an LLC? Well, you will need to send out a 1099-MISC form — regardless if the exceptions apply or not.

    Step 3: The person who provides the service must not be an employee. Instead, he or she must be classified as an independent contractor. The bottom line: Do you have the right to control and direct how the work is done?

    True, this can be fuzzy. So if you are not sure if a person is an independent contractor, you should seek out professional advice, such as from an attorney. I also have some other factors to consider when making the evaluation, which you can find in the following post.

    If you’re ready to issue a 1099-MISC head over to www.WageFiling.com where you can prepare, print and e-file 1099-misc instantly without forms or software.

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