1099-MISC/W-2 Reporting Info

  • W-2/1099 Forms are dead, so sad

    18 December 2014
    3 Views

    happy-business-woman2

    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
    9 Views

    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
    18 Views

    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
    19 Views

    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
    19 Views

    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
    27 Views

    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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  • IRS Ruling Protects Businesses From Liability when Filing W-2/1099-MISC for 2014

    13 October 2014
    165 Views

    shocked-woman-bills-horiz

    Tax fraud is on the rise

    In recent years, incidents of tax fraud have risen dramatically due to the ease with which criminals can obtain stolen social security numbers. Thieves use this information to file false tax returns and collect refunds from the IRS. According to a 60 Minutes investigation, stolen identity tax fraud cost US tax payers $5.2 billion last year alone. Government officials expect this amount to increase to $21 billion by 2016.

    To carry out these crimes, scam artists only need a victim’s social security number and date of birth. That’s it! Tax returns are filed using fake employment and earnings information, and a refund is sent out just a few days after filing. It’s such a simple process, but it has terrible repercussions for the people whose identities were stolen. They don’t know they’ve been victimized until their own, legitimate, tax return is rejected by the government, which believes the earlier return (filed by the fraudster) is the real one. The victims’ money and their lives are held up for weeks or months while the government sorts through the mess.

    One of the easiest places a thief can find the information they need is the mailbox of anyone waiting on a W-2 or 1099-MISC form. Those letters are required to be mailed in envelopes with the words, “Official Tax Document Enclosed.” It’s a clear signal to anyone with bad intentions.

    Protect those who work so hard for you

    What can you do to protect your employees and contractors? Use WageFiling’s SSN Masking when e-filing your forms, and your people’s social security numbers will be hidden. We’re the first in the industry to provide this service for all W-2 and 1099-MISC forms. Our system replaces each of the first five digits of any social security number or employer identification number with an X, securing that number for anyone who receives the form in the mail. SSN Masking also provides the opportunity to securely email your forms, saving money on paper and postage.

    Not only are you protecting your people, but using SSN Masking helps you, too. If SSN Masking is not used, and a contractor’s recipient 1099-MISC copies are stolen from the mail, the person or business who sent those forms may be held liable for damages.

    Employers and small businesses can help prevent stolen identity tax fraud by filing electronically with WageFiling and using our SSN Masking for all your distributed forms. Visit our identity protection page today to learn more.

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  • Report 1099-MISC/W-2 Wages Online or through Mail?

    6 October 2014
    109 Views

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    In less than 90 days businesses that paid an employee or contractor have to report the wages to the IRS, State, SSA and mail out copies to the recipient. Traditionally that meant going to the office supply store to buy the forms, envelopes and software. Back the office the real fun begins! Moving your data from one program to the other, printing all the copies, mailing them to the State and Federal agencies, the recipients all by January 31.  This year you can save some time and do it online without a trip to the store, buying forms or mailing.

    From your smartphone, tablet or PC you can enter your W-2/1099-MISC data online, instantly print IRS approved recipient copies on plain paper or save as a secure pdf and we handle the e-filing to State and Federal agencies. Your data is saved securely and can be accessed at anytime to reprint copies or file for the next year. Being able to email the recipient copy a secure pdf can help prevent Identity Theft as well!

    Since 1998 we have been offering W-2/1099 filing options to businesses large and small. We have been a Quality Supplier to the IRS since 1996 and our service has been recommended by Entrepreneur, Morningstar and CPA Advisor.

    So if you have to file this year save some time and money!

     

     

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  • Avoid IRS Penalties with a W-9 Form

    30 September 2014
    96 Views

    filling tax form 1040

    Many companies hire Contractors throughout the year and sometimes forget to collect their Tax ID at the time of hire.  With year end a couple months away, having that Tax ID is required for issuing a 1099-MISC to the IRS. If you don’t have it, or file late, you can be fined up to $100 per month.  The easy way to avoid any penalties is to send the Contractor a W-9 form.  This is an official request form provided by the IRS to obtain that data.

    If the Contractor does not provide that information the fines can still be levied onto you unless you document your attempts.  The IRS allows you to do this Mail, Phone or Email and the full instructions can be found here http://www.irs.gov/pub/irs-pdf/p1586.pdf.

    You can find the official W-9 form here and if you have any questions give us a call. We offer a W-9 Solicitation service to help if needed.

     

     

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  • 1099-MISC Filing Deadlines for 2013 Reporting

    21 August 2013
    158 Views

    Form 1099-MISC Due Dates

    Form 1099-MISC is due each year to the recipient by January 31 and to the IRS by the last day of February.

    However, if filing your 1099-MISC electronically the date is extended to March 31st. Each state also varies with its deadlines and requirements.

    For example, North Carolina 1099-MISC reflecting NC income tax withheld must be submitted by the last day of February.

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