1099-MISC/W-2 Reporting Info

  • Top 3 Reasons Wage Filing is Right for Your Business

    21 May 2016

    Wage filing can help your small business streamline your W-2 and 1099 tax filing system. No one likes to think about taxes, but not filing the proper forms can put you out of business. The IRS doesn’t take kindly to missing important tax deadlines. They have the power to impose fines, and even jail sentences if things are not done according to tax laws. Here are the top 3 reasons Wage Filing is right for your business:

    1. Fast: To get started, simply create an account (it’s free). Once you’ve registered, you can log on and enter your employee or contractor’s information in the fields that are clearly marked. The user-friendly interface is easy to use, and data entry takes only minutes per employee. Once you’ve entered the information, simply go through the checkout, print your documents and mail them to the IRS. Wage Filing will also e-file on your behalf, to make things even faster. Refunds and records can be sent much faster than the traditional mail-in method. It is much quicker than taking all of your paperwork and receipts to an accountant where they have to sift through information to get things done for you – and it’s much cheaper.

    2. Affordable: Accountants can charge exorbitant rates for filing small business taxes. While it’s true that they are experts when it comes to filing taxes and making sure you’re getting the refund you deserve, you pay dearly for that service. When it comes to simple W-2 and 1099 forms, you can do so in a cost-effective manner with Wage Filing. Simply pay a small fee per employee or contractor, and enter the information quickly; then print and send to the appropriate authorities such as the IRS. With Wage Filing, you could potentially save thousands of dollars on your taxes.

    3. Convenient: With no forms or software to download, Wage Filing offers a convenience that is unmatched. You can access the website from your computer, smartphone or tablet. Entering the information takes just a few minutes. Once you’ve finished, you can get on with other more important business tasks such as product development, customer service, marketing and gaining new customers.

    As a business owner, you have a responsibility to make sure your employees’ and contractors’ information is correct and accurate. Trying to do things yourself when you don’t have the skill is not in anyone’s best interests. With Wage Filing, you don’t need the skills or expertise to do your own taxes. Everything is there for you, and your records are saved online, safely and securely.

    Taxes are something that has to be done accurately and on time. While it’s important, it doesn’t have to cost a fortune. Thanks to modern technology you don’t have to have the knowledge and expertise of an accountant to ensure that everything is in order. Wage Filing can give you peace of mind knowing that you have done what you needed to do to ensure your employees and contractors are treated fairly and get what they deserve.

    Wage Filing can help you with all of your W-2 and 1099 needs. Visit the website for more information.

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  • Tips for Filing Your W-2 This Upcoming Tax Season

    21 May 2016

    As a small business owner, you may be dreading the upcoming tax season; most people do. After all, taxes aren’t as exciting as, say, decluttering your garage, cleaning the bathroom, or organizing your desk! W-2 forms are an important part of your taxes, though, and they must be dealt with.

    What is a W-2 form?
    Each year, business owners must report wages for work performed. This means all employees who receive a regular paycheck from the company must have wages reported via a W-2 tax form. A W-2 is the most common type of wage reporting; it shows both earnings and withholdings for every employee. They must then be filed with the SSA or Social Security Administration; in some cases, they must also be reported to the local state agency. It’s important to note that the W-2 form is different from the 1099 form, which records income for independent contractors only (i.e. non-employees).

    Information on a W-2 form
    The IRS requires all employers to record income that they pay to both independent contractors and employees. The W-2 form includes a wealth of information, such as employee income, social security taxes, Medicare and other applicable holdings for the year January to December. A W-2 form should also contain other income sources such as tips, bonuses, vacation allowances, moving expense payments, severance pay, travel allowances and sick pay.

    Filling out a W-2 form
    Filling out the form requires the creation of multiple copies, which are then filed with the SSA. As a business owner, you’ll need to keep copies, and you’ll have to send a copy to each employee.

    Penalties for late W-2 filings
    As an employer, you are required to mail W-2 forms by January 31st. E-filing must be done no later than March 31; paper deadlines are February 28th. If filing to the state, dates can differ for each state. Missing these deadlines can result in fines for each W-2 not filed.

    Simplify the process
    As a small business, you probably don’t have an entire HR department to handle payroll or tax filing. As such, you must take on the responsibility of filling out the various tax forms yourself. You could purchase an accounting software program to do this for you, but most do not offer the option of e-filing W-2 forms. This means you will likely have to drive to a supply store, purchase the forms to fill out and mail manually.

    Fortunately, there is a simpler option: Wage Filing. With Wage Filing, you can create an account, enter the information for each employee and e-file your forms in just minutes. There are no forms or software to download, and you don’t have to worry about mailing to the IRS – it’s all done for you. Simply log in, enter your info, check out and print the forms for your own records.

    Wage Filing was created specifically for small businesses that don’t have the luxury of hiring full-time payroll or HR employees. As an entrepreneur, you understand the importance of getting things done in an efficient and timely manner; Wage Filing can help you with that during tax season.

    Wage Filing can help you when it comes to filing your W-2 and 1099 forms. Visit the website today for more information about their range of services.

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  • Tips for Filing Your 1099 This Year

    21 May 2016

    It’s that time of year again – tax time! If you own a small business, you probably need to fill out several forms for your employees and independent contractors. You could give all of these tasks to your accountant to fill out, but that could cost you money that could better be spent on your business. Filing your 1099 form is not complicated, but not doing it can come with serious repercussions. Here are some tips on filing your 1099 this year:

    What is a 1099 form?
    A 1099 is a series of documents that is used to claim all income. This includes work that is done as an independent contractor. The 1099 is also used to record other income such as interest and dividends from investments, government payments or withdrawals from retirement accounts. You, as a business owner must issue and file these 1099 forms; your independent contractor is responsible for reporting and filing them on their own tax submission.

    It is critical to not only file on time but to ensure that all of the information is correct. If it isn’t it could reflect poorly on both you and your independent contractor.
    If you have paid more than $600 to an independent contractor than you must issue and file the 1099 form.

    Information gathering
    The first step is to gather all pertinent information that needs to be included in the form. This includes the independent contractor’s name, social security number, address, dates worked and hourly pay. You will also include how much was paid on each pay, and what the yearly total is.
    Filing the form will be much quicker and easier once you have all of the information for each contractor in front of you.

    Penalties for not filing a 1099 form
    There are penalties for not issuing a form, as well as not filing. The penalties are as follows:
    Not issuing: Fines can range from $30 to $250 for each statement not filed, and there is no maximum.
    Not filing: Generally, if a contractor doesn’t report their earnings that were issued on the 1099 form, then they could be charged 20 per cent of the understated amount. For example, if a contractor claimed $500 instead of $1000 of income, they would be charged 20 percent of 500, or $100.

    How to file as a business owner
    Using an online system, such as Wage Filing, is a simple process that can have you moving on to other business in just minutes. There is no software or forms to download; simply create an account and enter the pertinent information. Once you’ve checked out, you can print the forms for your records and/or send them to the IRS. The system can even e-file the forms for you, making it even more convenient.

    Taxes and income forms can seem overwhelming, and many business owners dread the thought of tax time. With Wage Filing, you can get your taxes done quickly and conveniently. You may not enjoy the thought of doing them, but at least, you won’t feel overwhelmed.


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  • Is My Information Safe When I File My Taxes Online?

    21 May 2016

    With more than 10 million Americans made vulnerable to identity theft during tax season, it’s natural to wonder how safe your private information is when filing taxes online. After all, identity thieves are becoming savvier, and for every protective measure produced, it seems there is always a malware product right behind it. In fact, studies have shown that identity theft is on the rise, and it isn’t always done online. A significant portion of identity theft occurs from criminals stealing personal mail and then using the tax ID information located on the W-2 and 1099 forms to impersonate the victim. The envelopes that contain these forms are legally required to be labeled “Official Tax Document Enclosed,” which makes it easy for criminals to identify.
    As a business owner, if any information that you e-file should be stolen by online criminals, you and your company could be liable for the damaging result of the employee. It’s important, then, to make sure that any data you submit on an employee or independent contractor’s behalf is safe and secure.

    Encryption is the process of ‘jumbling’ information and data as it moves from point A to point B. Without getting too technical, this scrambling makes it extremely difficult for anyone to intercept the data and gain access to valuable information. There are sophisticated programmers out there, however, who can intercept the encryption and unscramble the info. It isn’t common, but it does happen, as hackers and criminals become more computer savvy.

    SSN Masking
    SSN Masking offers an extra layer of protection, along with encryption. This adds to the security of your information and also protects you, the business owner, against any liability.
    E-filing highly confidential documents and forms using a system that uses SSN Masking can assure both you and your employees that all information will be safe and untouchable by would-be criminals.
    SSN Masking is synonymous with the term SSN Truncation. What it does is replaces the first five numbers of an employee’s social security or tax ID number with “X”s before preparing the form to be mailed. This allows for a completely secure mailing, eliminating the option for criminals to gain access to personal data.

    If you’d like to eliminate the process of physically mailing the forms altogether, you also have the option of emailing them to recipients. Keep in mind that you will have to abide by certain IRS regulations that include:
    • Opting into SSN Masking
    • Encrypt the document and make sure it’s password protected
    • Receive approval to email the forms or get a confirmation of receipt to PDF.

    If you use a system like Wage Filing, your SSN Masking is a standard feature, so you know you’ll be getting the maximum protection possible.
    The idea of yours or your employees’ information being stolen is a scary thought, and it can be difficult to know which way to get the information out – via mail or online. Both methods can fall prey to identity theft; but with the SSN Masking feature, you can have peace of mind knowing that your private information is as secure as possible in today’s highly technological world.
    Wage Filing can help with all of your tax needs, including e-filing. Visit the website today for more information about their range of services.

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  • Three Tips for Avoiding Mistakes on 1099-Misc Forms

    29 October 2015
    Contractors 2

    1099-Misc forms are used to report payments that are miscellaneous to the IRS. Generally, these are filled out for independent contractors who are not considered employees of any specific company. If you are an independent contractor who has to fill out a 1099-Misc tax return document and give it to the IRS, you might want to continue reading to learn how to avoid making mistakes on your form.

    1. Double Check Your Work

    This is an obvious method to prevent making mistakes on 1099-misc forms, but checking your work over a few times is so important. You might just end up catching a mistake or two on a few lines that will mess with your tax returns. Check everything over carefully because you only get one tax return per year and you want to make sure you are getting as much money back from the IRS as you possible can.

    1. Get a Professional to Help You

    If you have a friend or you happen to know someone who knows how to do taxes really well, then ask them to help you. Even if you just need an extra pair of eyes to help you check over your work, it doesn’t hurt to ask. If you need a lot of help, then ask them if they know how to fill out 1099-misc form.

    1. Follow the Directions

    There are directions stated every step of the way for any tax form that you fill out. It should tell you what lines to fill out and what lines you can skip. If you still aren’t sure about what you should do, then either search online to find out what the form is talking about or call the IRS and see if they can help you with what you need to fill out.

    1. Use White Out

    While it is not considered to be professional, white out works in a pinch. If you accidentally filled out a line you weren’t supposed to, white out what you inputted into the form. It saves you the time of having to fill out the form again and it is still a valid tax return form. However, whatever you do, do not scratch anything out on the form in pen or pencil. This looks really bad and if you do actually make a mistake on the form, the IRS might be less willing to work with you to fix the problem.

    If you follow the directions, 1099-misc forms aren’t that hard to fill out. Just make sure that you have documentation of all of your income sources and that you fill out the form correctly. If you happen to make mistakes, then you can either fill out the form again or use white out to save time. If you are really having trouble with the form, then try calling the IRS or consult a friend or tax return specialist because even if you just want them to look it over really quickly, they will know exactly what to look for and how to help you.

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  • Three Things You Need to Know about Hiring Independent Contractors

    27 October 2015

    Hiring independent contractors can be a liberating experience. While they set their own price, their prices are generally cheaper than many name brand companies. If you want to hire an independent contractor to do freelance work for you and/or your company, then there are three things that you should know before doing so.

    1. Liability Problems

    If you hire an independent contractor to come to your worksite and they get hurt, they are allowed to sue you for negligence. This is a real problem if your workplace really is not safe. If the contractor is working from home, then they can’t really sue you because they were doing the work in the comfort of their own home. It falls on them to keep their home safe when they are working.

    1. Copyright Issues

    The contractor has creative license and therefore has the right to their property. If in the contract they state that their property is theirs and cannot be used for anything other than what you hired them to do it for, then you cannot use the copyrighted material anywhere else. The work belongs to the author and they can easily sue you if you break contract and use it elsewhere without their permission.

    1. Tax Forms

    Hiring an independent contractor requires you to file a 1099-misc form at the end of the year which documents how much you hired your contractor for. You then send this to the contractor so that they can do their taxes. If you do not fill out the 1099-misc form, then you can get in trouble by the IRS for tax evasion, even if it was accidental. Your contractor can also get you in trouble with the IRS for not sending them the form they need to complete their taxes with.

    You will want to get proof that the contractor you plan to hire has documentation that they are a self-employed worker of the state. If you do not, then the IRS might not allow you to claim anything from the 1099-misc form with that contractor’s name on it. Make sure that you are hiring a documented freelance worker before you hire them so that you can claim your taxes at the end of the year. Otherwise, if the IRS audits your taxes, you won’t have a leg to stand on against them.

    Having an independent contractor to do work for you can seem pricey at first, but the fact of the matter is that you don’t have to train them or provide them with worker’s compensation or anything else of that nature. You are actually potentially saving a lot of money by hiring a freelance worker. Fill out the required tax forms and send them to the IRS so that you can claim your tax return for the 1099-misc form. Make everything in your contract with the independent contractor clear and make sure that they are being clear with you. Otherwise, a lawsuit could happen due to a miscommunication between you and the contractor.

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  • How to Make 1099-misc Filing Easy

    22 October 2015

    When you work as a freelance writer or an independent contractor, the 1099-misc tax form is your best friend. In order to file your taxes at the end of the year, you will need to fill out this form for every company that you earned a substantial amount of income from throughout the year. The companies are required to send you this form by January 31st of the following tax filing year. Even if they do not send it, you are still required to report your income to the IRS.

    Report All Income

    If you work a substantial amount of the year as a freelancer, then the IRS will classify you as self-employed. When reporting your income, make sure you fill out any sections required for self-employed filers. If you do freelance work on the side and you have another job that brings you the bulk of your income, then report your independent contracting income as other income. There is a bit of a difference in tax deductions when it comes to just how much you rely on your freelance income.

    Advantages of This Form

    If you identify your employment status as self-employed, then you are liable to pay Medicare and Social Security taxes. However, there are advantages to filing the 1099-misc form. For example, you have more freedom with your tax deductions. If you are working on a laptop, then it is much easier to get a deduction on your computer than it is for other workers who have to have itemized receipts for their deductions.

    Use TurboTax

    TurboTax is a tax filing website that is pretty easy to use. It imports information from the IRS onto a form so that you can just fill out a few numbers here and there and complete your taxes. It walks you through everything step by step so that you don’t get lost. If you want to make doing your taxes as easy as possible, then utilize the resources that TurboTax has to offer you.

    If you do not want to use TurboTax, then you can use the 1040-ES form to do your tax calculations. Sometimes technology is not reliable, so make sure to double check your work on both TurboTax and the written form. You do not want to have to go through a tax audit if you accidentally file the wrong numbers.

    Filing a 1099-misc form is meant to be relatively easy so long as all of the companies you have earned a substantial amount of income from send you their form copies at the end of the year. If you do not get a form from the companies, it is still your responsibility to keep track of your income and jot it down on the form. If you made income from a company, then put that income down, regardless of whether or not they sent you the exact amount of money that you earned. You are allowed to estimate and indicate that on the tax form.

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  • Are My Employees’ Identities Safe When I File 1099-misc Forms Online?

    20 October 2015

    Filing taxes online is a relatively new commodity in the working world. People who started filing their taxes long before internet taxpaying rolled around probably have a harder time using online functions than those who are younger workers. Whatever the case might be, if you are filing your 1099-misc forms online, there is a chance that your identity could be stolen. Follow this guide to minimize your chances of identity theft.

    Don’t Leave Save Your Password

    As tempting as it may be to click the “remember me” function on your tax form login page, don’t. There are certain places where there is almost no risk of having your password stolen because of the nature of the website. Taxpayer websites are one of the highest trafficked places by hackers and identity thieves. If you happen to have a key logger Trojan or some type of virus on your computer that you don’t know about, it will be far too easy for someone to steal your password and identity.

    Check for Viruses

    Although some viruses like to stay hidden in your computer, most anti-virus software will be able to detect the viruses on your computer. Some are designed in such a way as to bypass the security functions of your software, but they are somewhat rare. If you have a virus on your computer, then your identity and all of your passwords can be easily compromised. Don’t let that happen to you. Do a maintenance check on your computer regularly.

    Don’t Use a Public Computer 

    It is best to use a home computer or laptop when filing your taxes. This is because if you do your taxes on a public computer, you have no idea who uses it. There could be tons of hackers that use the same public computer you just used to complete your 1099-misc forms on. Do yourself a favor and just complete your taxes at a trusted internet source. Don’t take any chances.

    If you do have to use a public computer, then change your password as soon as you can. It is better to use your smartphone if you have one than to use a public computer, but if you really need to use the public computer, then definitely change your password to a difficult one afterwards. If possible, change the password on a different computer and send yourself multiple password change confirmation emails.

    It may seem silly to take all of these precautionary measures against identity theft, but the fact of the matter is that identities are stolen left and right every day. You don’t want to become someone who has to worry about every little thing they do because someone stole your identity. There should only be one you out there.

    If someone steals your identity, call an identity theft recovery agency as soon as possible. The longer you wait to get your identity back, the longer the thief will go about pretending they are you. Do not let it wait under any circumstances whatsoever.

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  • Most Common W-2 Corrections

    15 October 2015

    Filing taxes is one of the biggest headaches you can run across as a working, productive member of society. Since the tax laws change on what seems like a daily basis, it is really easy to get confused, follow the wrong instructions, and even fill out the wrong year form and not realize it, until the IRS, Internal Revenue Service, sends the whole shebang back to be redone. With that being said, read on below for some of the W-2 corrections and mistakes made every year, so you can hopefully avoid them.

    Using the Wrong Form for the Wrong Year

    You should always you the W-2 form for the year that you are filing, not the year that you are in. For example, if you are filing for 2003, you would not use the tax form for 2015. This can be confusing, but simply checking the date at the top of the form will help you to keep track. Just don’t get in a hurry to get it done and forget.

    Missing the Deadline

    While the April 15th deadline is firmly ensconced in most American citizens brains as the dreaded day that taxes are due, believe it or not, it is easy to get busy and miss the deadline entirely. This ends up in penalties, interest, and late fees that you don’t want to deal with. It’s best to just mark the date in red on the calendar then time you get it for the New Year.

    Math Mistakes

    One of the biggest mistakes that have to be corrected is the classic math mistakes. While everything is done on computer these days, mistakes can still be made and people are only human. Math mistakes can reduce your refund or end with you getting a correction from the IRS because you owe them money, you didn’t think you owed. It’s best to go over your figures carefully, before you click, submit to avoid mistakes on down the line.

    Additional Income

    Additional income from a side job or pension often lands people in the world of W-2 corrections. The IRS examiners will certainly let you know when you owe money on these things and you can be sure that they will come to collect. Sit down and think about it before you file those taxes and make sure that you have accounted for every penny you have made over the last year.

    Sign the Forms

    Believe it or not, especially when the form is being filed electronically, many people forget to sign the form. Your signature is required when you file your taxes, so be sure that you check the form and then check it again, to ensure that you signed in the proper spot and all lines are filled in as well.

    These are just a few of the most common W-2 corrections that you will run across when filing your taxes. Examine them, check your form carefully and this year’s tax filing should go off without a hitch.

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  • What to do if You Need to File a Past Year W-2

    16 September 2015

    The IRS, Internal Revenue Service, requires American’s to file a tax return if they are a working citizen and make over so much in a year. Many people fail to file the required forms and do not realize that the penalties and interest just continue to pile up year after year that you do not get it done. The obligation to file these taxes never goes away and can end in garnishment of your wages, seizure of property and even prison time if it goes too far. With that being said, read on below for some tips on what you need to do if you need to file a past year W-2.

    Collect Your Income Information

    You need to get together any W-2’s that you have, and if not get together all of the income information you can find for that tax year before you set out to get the taxes taken care of. If you are missing a W-2 and cannot get it from the employer, then you can contact the IRS or a tax site online to get the form you need to fill out or a replacement W-2. Once you have all of the information together, you are ready to file your past year W-2.

    Download Prior Year Tax Forms

    There are two ways to proceed from here to file your past year W-2. You can go to a professional tax preparer and have them file for you, or you can download the forms and do the taxes yourself. If you do not feel comfortable with doing your own past taxes, it is best to have a professional take care of the problem.

    You must always file overdue tax returns on the tax forms for that year, or you will be caught up in confusion it will be hard to handle.

    Prepare the Past Tax Returns

    Never forget that tax laws and instructions change from one year to the next, so before you start preparing your past tax return, check to see that the instructions are the same for that year that you are filing in. Failing to follow the proper instructions can end in you having to repeat the entire process while the penalties and interest just keep building.

    Submit the Forms

    Once you have prepared your past tax return, check it over a few times to ensure that it is right and you have not missed anything. If you owe anything to the government, make sure to include as large of a payment as possible, so that you can start to reduce those interest charges. Submit the form and wait for word from the IRS that it was received.

    These are the steps that you need to follow if you want to file a past W-2. Evading filing your taxes is a serious offense and is punishable by fines, prison, or both if you keep failing to respond to notices. File your taxes when they are due, just to be on the safe side.

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