1099-MISC/W-2 Reporting Info

  • 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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  • 2015 Filing Deadlines Clarified

    29 January 2015

    The deadline for filing your W-2 and 1099-MISC forms is coming up quickly, and we’re here to help you meet your deadlines. Let’s take a quick look at what those due dates are and talk a bit about how you can be sure to hit them with time to spare.

    January 31st or February 2nd?

    January 31st is the due date for sending recipient copies to your employees (W-2) and contractors (1099-MISC). However, since January 31st falls on a Saturday this year, you have until the following business day to send those out. That means this year’s forms must be postmarked by Monday, February 2nd.

    March 2nd or March 31?

    If you choose to file paper forms with the IRS and Social Security Administration (SSA), you’ll need to have those forms in the mail by March 2nd. But if you choose to file electronically, using WageFiling’s service, you actually have some extra time to get those forms filed. Choosing to file electronically means you have until March 31 to file with the IRS and SSA.

    WageFiling handles recipient copies and filing with the proper agencies all in one step. When you file electronically with us, you’ll be able to print recipient copies or even choose secure PDFs to send along to your employees and contractors. Also, you can e-file your forms now, to make sure your recipient copies go out on time, and we guarantee to file with the IRS and the SSA on time when the time is right.

    Click the Start Filing link to get started today!

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  • Green Business Bureau and WageFiling team up for tax season

    8 January 2015

    Green-Header Seal_gold_footer1
    We’ve teamed up with Green Business Bureau this tax season to help bring awareness to paperless W-2/1099-MISC filing this month. With every business in the nation required to report employee and contractor wages millions of forms are purchased, used once and disposed of. With our service users can enter their W-2/1099 data online, instantly print IRS approved recipient copies on plain paper or as a secure pdf to email and we e-file to the IRS/SSA and State.

    Thus eliminating the need for forms, special envelopes, postage or software and eliminating a TON of paper waste. A portion of all sales will go to help plant trees in urban areas around the nation in our users name. Please email us if you use the service and we’ll add you to this list!

    The Green Business Bureau and IzzitGreen are always working to bring their members services and products that will help their business save money and operate in a more sustainable manner. In addition to their certification process they are committed to bring multiple benefits to you through savings on products, green knowledge sharing, Green Rewards from IzzitGreen, and more. Learn more about how you can green your business by visiting them at www.gbb.org

    WageFiling Team

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  • W-2/1099 Forms are dead, so sad

    18 December 2014


    Every year, businesses in the United States must report wages paid to employees and contractors, a process that includes visiting the office supply store to buy traditional pre-printed W-2 and 1099-MISC forms and compatible envelopes and software, usually only available in larger quantities than you need. Once you have the forms back at the office they have to be printed, stuffed and mailed to the recipient, state and federal agencies all by January 31. This costs the average business filing for 10 employees about $300 in time and materials each year. The IRS also increased the penalties for late filing by $100 per person in 2014.

    You can avoid all the hassle without leaving your desk and complete your filing for just $3.49 per person. At WageFiling.com our web-based system allows you to enter your data online and instantly print IRS-approved recipient copies on plain paper (or save as a secure PDF) and we electronically file your data to the IRS, SSA and states that participate by the established filing deadlines, guaranteed! No forms, no software, no hassle. Your account data is stored securely year after year for easy access and filing.

    This year you can even save on stamps with the new IRS regulation called SSN Masking. SSN Masking protects the identifying information found on those forms by hiding the first five digits of the SSN or EIN with an X. So whether you email these forms or send them using the postal service, you can be confident you’ve done your part in protecting your workers’ identities from being stolen.

    WageFiling has been a Quality Supplier to the IRS since 1996 and the only owner-operated service on the market. We stand behind our product with an outstanding support team with IRS and tax experience. We even provide bilingual support for our Spanish-speaking customers.

    Get in touch with us over the phone, email, or live chat whenever you have a question, and we’ll be glad to help.

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  • How to File a 1099-MISC if the Tax ID is Missing

    9 December 2014

    Every now and then, you may find you’re missing the Social Security Number (SSN) or Employer Identification Number (EIN) for one of your payees when you’re preparing to file your 1099-MISC forms for the year. This can be frustrating since the exact steps you should take are not obvious, and the IRS may issue fines for incorrect information, but WageFiling is here to clear things up for you.

    The problem comes when a payee does not submit the proper information to you in a timely manner, but you still have hard IRS deadlines to abide by. The answer is simpler than you may realize. In a nutshell, you’ll contact your contractor for the appropriate information, keeping good records of your attempts to collect that information, and file an incomplete 1099-MISC, updating the necessary files once you do receive the numbers you need. That’s it.

    Let’s take a look at this process in more detail.

    Solicit the information from your payee

    If you do not have the SSN or EIN of your payee before it’s time to file, you’ll need to officially ask for it by providing them with a W-9 form. If you have previously sent them a W-9 but haven’t received a completed form back, the IRS recognizes follow-up solicitations by mail, phone and even by certain electronic means. You’ll just need to keep detailed records about how and when you attempted to contact your payee. The IRS form Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs has detailed information about the type of requests you should make, how often to make them (generally just once per year), and what records you should keep.

    File the 1099-MISC

    Since you don’t have the SSN or EIN you need for completing the form, go ahead and enter all zeroes in the space where a SSN or EIN would go. This will trigger an alert with the IRS, and they’ll be in touch for clarification, but filing this way will allow you to hit your deadlines, even if your payee isn’t being helpful. Once you receive a letter from the IRS, you can provide the records you’ve kept showing you made reasonable attempts to collect the proper identification information. If there’s cause for a penalty in your case, your records will show you did everything required of you, and the IRS will go after the payee for that penalty.

    Early December is the time when small businesses begin preparing to file their forms for the year. Starting the process by sending out those W-9s should give you enough time to get them out and hear back from your payees before the filing deadline.

    Remember: ask your payee, document your requests, then file the 1099-MISC on time, even if you have to use all zeroes for the SSN or EIN. That’s it.

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  • Issuing a W-9 Form

    8 December 2014

    IRS-Form-W-9  Issuing a W-9

    The first step in filing out a 1099-MISC form is making sure you have the contractors Tax ID or SSN associated with their business. Submitting incorrect information to the IRS can result in fines and penalties. The good news is that form is free and you can download the official version here. For more information about the form read below

    Businesses most commonly use IRS form W-9, Request for Taxpayer Identification Number and Certification, to get information from vendors they hire as independent contractors. When a business pays an independent contractor $600 or more over the course of a tax year, it is required to report these payments to the IRS on an information return called form 1099-MISC. Businesses use the name, address and Social Security or tax identification number from form W-9 to complete form 1099-MISC.

    Businesses that hire independent contractors do not withhold income tax or pay Medicare or Social Security taxes for their independent contractors, as they do for their employees; contractors are responsible for these obligations. However, the IRS still wants to know how much these contractors are being paid to make sure contractors pay the taxes they owe, and it uses form 1099-MISC to gather this information. Businesses do not send form W-9 to the IRS.

    Information Needed

    Form W-9 asks for the independent contractor’s name; business name (if different); business entity (sole proprietorship, partnership, C corporation, S corporation, trust/estate, limited liability company or “other”; and the business’s tax identification number (or Social Security number, for sole proprietorships that don’t use a separate tax ID number). Form W-9 also asks the person filling it out to certify that he or she is exempt from backup withholding. Most taxpayers are exempt, but if they aren’t, the company hiring the independent contractor will need to withhold income tax from that contractor’s pay at a flat rate of 28% and send it to the IRS.


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  • WageFiling’s Green Partnerships Boost Your Positive Environmental Impact

    26 November 2014

    WageFiling EPA Certificate of Partnership

    Keeping millions of paper forms out of landfills is just one way we here at WageFiling work to save our planet. We use solar panels at our office to harness as much sustainable energy as possible. We’ve also committed to donating a percentage of our revenue to Grand Rapids Urban Forest Project, a local nonprofit organization dedicated to protecting, enhancing and expanding urban parks and public spaces in our area. We’re proud of our efforts, and we work to encourage other businesses to do the same by our participation in the United States Environmental Protection Agency’s (EPA) Green Power Partnership program and the Green Business Bureau.

    The EPA’s Green Power Partnership program encourages businesses and other organizations to increase the amount of green energy they use, cutting back on the environmental costs of using less sustainable sources of energy. We’re one of 1,300 organizations—including universities, local and state governments, and even Fortune 500® companies—choosing to go green with our energy use. That’s our certificate above, and here’s a link to the WageFiling Green Power Partnership profile.

    Like joining the EPA’s Green Power Partnership, our involvement in the Green Business Bureau is a measure of our commitment to sustainable business practices. The Green Business Bureau brings together business leaders who share a desire to practice environmental responsibility and operate in ways that benefit their industries. You can visit the WageFiling profile page on the Green Business Bureau site for more detailed information.

    Partnering with WageFiling means choosing a vendor who’s as committed to building and improving our environment as you are. Over the last three years, we’ve saved 5 million unnecessary forms from ending up in landfills, and this year alone we’re aiming for 3 million more! Join us by taking the pledge today. As a reward, we’ll send you a badge to add to your site, but more importantly, you’ll know you’ve taken that extra step to improve the world around you.

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  • File Your 2014 1099-MISC Forms Now!

    17 November 2014

    Get a jump on your 2014 taxes by e-filing your 1099-MISC forms with WageFiling now. We’re open for the upcoming tax season and ready to make your life easier and more secure. Fill out your forms today, and we’ll e-file them for you on January 1.

    Saving You Time

    If you’ve filed 1099-MISC forms with us in the past, it’s easy to bring last year’s information into this year’s forms. Check out our video for detailed instructions.

    If this is your first year e-filing with us, we’ve got help for you, too. Just visit our Help site for tutorial videos and links to all of our help documents. You’ll find our phone number on the bottom of that page in case you’d like to talk a live agent about your questions. We’re always glad to help!

    More Secure Than Ever

    When you print your recipient copies of the 1099-MISC forms, you’ll notice the tax IDs are X’d out. This is our SSN Masking, a built-in service that protects your recipients’ personal information. This protects them from identity theft, and it protects your business from liability. Just one more way WageFiling is taking care of you this tax season.

    One last thing: We recommend that you add all your 2014 1099-MISC filings before checking out to keep them in one transmittal (1096) to keep the IRS happy.

    Get started e-filing today, and save yourself time when the busy season hits. Feel free to get in touch any time with your questions. We love helping our customers!

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  • What is a form 1099-MISC?

    27 October 2014

    To comply with IRS regulations, it’s important for your business to report all sorts of payments made to other businesses and individuals. Many of those payments that aren’t declared elsewhere will be reported using Form 1099-MISC.

    You’ll need to fill out a Form 1099-MISC for individuals, vendors, subcontractors, independent contractors, and others if you’ve paid them $600 or more during the year. This includes:
    – cash payments to fishermen
    – crop insurance proceeds
    – medical and health care payments
    – prizes and awards
    – proceeds paid to attorneys
    – rents
    – services (including parts and materials)

    Even royalties or broker payments of only $10 need to be reported on one of these forms. For detailed information about every situation requiring one, be sure to read the Form 1099-MISC documentation on the IRS web site.

    In order to collect all the necessary information for filling out these forms, have your contractors and other payees provide you with a completed Form W-9. The W-9 will provide you with the legal name, address and taxpayer identification number for the vendor, which is exactly what you’ll need when preparing any 1099-MISC forms.

    Also, do yourself a favor and make good use of your bookkeeping system. Since you will need to know whether any payment throughout the year falls under the categories for reportable payments listed above or whether your payments to a particular recipient reaches the $10 or $600 thresholds for reporting, noting these details as you make each payment will save you time and effort during tax season.

    Filing electronically instead of using paper forms is another way to make this whole process easier for your team. Traditional paper forms must be filed with the IRS and the recipient by January 31, 2015 this tax season, but filing electronically means you have until March 31, 2015. See more about how WageFiling works and sign up for an account today!

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