1099 & W-2 Filing Guide for Small Business

Choose the right filing method, right forms, and get everything done on time, easily. 

1099 Form Due Dates for 2021. 

The 1099NEC forms must be mailed to recipients and e-filed or mailed to the IRS on or before January 31, 2022.

For other 1099s, file by February 28, 2022, if you file on paper, or by March 31, 2022, if you file electronically.

The due dates for furnishing payee statements remain the same.

Possible New E-Filing Requirements

The IRS is considering changing the e-filing threshold to 100+ total 1099 & W2 forms per payer. They will make this decision by November. Stay tuned to Discount Tax Forms for details...

DiscountEfile.com helps you get it all done, easily!

 

1099-NEC Forms for Nonemployee Compensation

The 1099-NEC was a new form in 2020 for business taxpayers to report payments of nonemployee compensation.

Starting with tax year 2020, taxpayers must complete this form to report any payment of $600 or more to a payee.

For the 2021 Tax Year, it has changed to a 3up format (it was 2up). New forms and envelopes will be required.

It was streamlined in format to include a few strategic changes, such as the addition of Box 2 to avoid the need to file both a 1099-MISC and 1099-NEC. The IRS also deleted the FATCA filing requirement box and two large red boxes.

As a result of the form updates, the 2021 form was resized to accommodate 3 forms per page and save paper.

Other 1099-NEC Form Changes for 2021

Form 1099-NEC, box 1.

Box 1 will not be used for reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes.

Form 1099-NEC, box 2.

Payers may use either box 2 on Form 1099-NEC or box 7 on Form 1099-MISC to report any sales totaling $5,000 or more of consumer products for resale, on buy-sell, deposit-commission, or any other basis. For further information, see the instructions later for box 2 (Form 1099-NEC) or box 7 (Form 1099-MISC).

Generally, this form is due by January 31st - to be mailed to the recipient and mailed or e-filed with the IRS.

There is no automatic extension for this form but may be available under certain hardships.

Nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the TIN provided was incorrect.

More information about this form can be found here: Form 1099-NEC, Nonemployee Compensation

1099-MISC Form Changes

Form 1099-MISC title change.
The title for Form 1099-MISC has been changed from Miscellaneous Income to Miscellaneous Information.

Form 1099-MISC, box 11.
Box 11 includes any reporting under section 6050R, regarding cash payments for the purchase of fish for resale purposes, from an individual or corporation who is engaged in catching fish. For further information, see the instructions for box 11, later.

1099 Rules that can make or break you
Here is a great article from Entrepreneur Magazine about who is required to file 1099 forms and why, the exceptions and how you can be proactive about 1099s to protect your business from large penalties. 

Read the Article

Due Date for W2 Copy A

January 31, 2022 is the deadline for W-2 Forms for tax year 2021.

This includes: W-2, W-2AS, W-2CM, W-2GU, W-2VI, W-3 and W-3SS with the SSA. The due date is now January 31 whether you file using paper forms or electronically.

You no longer get more time to e-file or print and mail copies to the SSA.

Possible New E-Filing Requirements

The IRS is considering changing the e-filing threshold to 100+ total 1099 & W2 forms per payer. They will make this decision by November. Stay tuned to Discount Tax Forms for details...

DiscountEfile.com helps you get it all done, easily!

Good News!

There were no major changes to W2 forms for 2021.

Deadlines for 2021 1099 & W-2 Filing

January 31, 2022

All 1099 Recipient Copies B / C / 2 mailed to recipient
W-2 Employee Copies B / C / 2 mailed to employees

1099-NEC for contractors - Copy A forms to IRS (via mail or e-file, which is required for 100+ forms)
W2 Copy A to IRS (mailed or e-filed)

 

February 28, 2022 - Paper 1099 Copy A forms to IRS

1099 Form Copy A, along with 1096 Transmittals, mailed to the IRS for all 1099 forms except 1099-NEC with non-employee compensation, which are due January 31.

 

March 31, 2022 - E-file 1099 forms with IRS

1099 Forms E-filed to the IRS, except 1099-NEC with non-employee compensation, which are due January 31.

 

 

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Easy 1099 & W-2 Starts with Your Software System

Your accounting software is the first step to filing 1099 & W-2 Forms the easiest way.

You have 3 main options. 

Your Accounting Software

If your accounting software prints 1099 & W-2 Forms, you can purchase compatible forms and envelopes.

The program will summarize all of the wage data for the year, then print recipient and government copies.

Important: Forms must the layout used in your software.

Shop for W2 Forms

Shop for 1099 Forms

Specialized 1099 & W-2 Software

If your accounting software does NOT print the forms, specialized 1099 & W-2 software is ready to help!

Import wage data, or manually enter it into the system. Then, print the 1099 or W-2 forms you need. E-filing is also typically available.

Be sure that forms are compatible with the layouts programmed into the software.

Shop for Specialty Software

Online 1099 & W-2 Filing

The easiest way to file less than 50 forms is online! Discount E-file takes care of printing and mailing recipient copies for you, plus e-files with government agencies.

You simply import or type in data and we do the rest!

E-Filing is required for 100+ forms, but you can e-file as few as one!

Learn More

BMISFED051099 - Choosing the Right Forms

Select the right type of 1099, in the right format, for easy printing and mailing.

1] Which 1099 Form to Use

New 1099-NEC forms replace 1099-MISC for 2020!

You must file a 1099NEC  if you've paid $600+ to an individual who is not an employee during the tax year.

There are many other types of 1099 forms used for other purposes. Here is a list.

1099-NEC Filing Requirements

2] Number of 1099 Parts

The number of parts you need is based on which government agencies you need to file with - Federal, State, and/or City.

1099NEC Parts:
- Copy A: Federal Government (Red Copy)
- Copy B: Recipient Copy
- Copy C/2: Payer or State Copy
-

Shop 1099MISC Sets

3-Part States

AK, CA, FL, GA, IL, IN, IA, KY, LA, MD, MI, MO, NV, NH, NM, NY, OR, SD, TN, TX, VT, WA, WY

4-Part States

AL, AR, AZ, CA, CO, CT, DE, DC, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MO, MS, MT, NE, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, UT, VT, VA, WV, WI

5-Part States

AL, AZ, CO, CT, DE, HI, ID, ME, MA, MN, MS, MT, NE, NC, ND, OH, OK, PA, SC, UT, WI

Decoding 1099-MISC Requirements

Get the details on your options and regulations on our blog post "Decoding 1099-MISC Requirements"

Get the Details

3] Type of Paper

1099NEC Tax Form Copy A for Federal Payer - DiscountTaxForms.com

Preprinted 1099 Forms are for software that only prints the data. Boxes are preprinted on the form and recipient instructions are preprinted on the back.

Blank 1099 form paper is for software that prints form boxes and data. Recipient instructions can be printed on the back. If they aren't, you must supply them per IRS regulations.

Continuous, pin-fed 1099 forms can be used with typewriters or dot-matrix printers.

Don't Forget 1099 Envelopes

Use compatible envelopes to ensure the recipient and return addresses show through the windows correctly.

1096 Transmittal Forms

When mailing 1099 Copy A forms to the IRS, include one 1096 form for each payer. This form summarizes all of the 1099-MISC submitted by the payer.

LW2AW-2 - Choosing the Right W2 Forms

Select the right type of W-2, in the right format, for easy printing and mailing.

1] Government Requirements

The number of W2 parts needed depends on which government agencies you must report to.

Federal Only = 4 Parts
Federal & State = 6 Parts
Federal, State & City/Local = 8 Parts

4-Part States

AK, FL, NV, NH, SD, TN, TX, WA, WY

6-Part States

AL, AZ, AK, CA, CO, CT, DC, DE, GA, HI, ID, IA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, ND, NJ, NM, NY, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, WV (add extra parts for city withholding taxes)

8-Part States

AL, DE, KY, MD, MI, MO, NY, OH, PA

Decoding W2 Requirements

Get the details on your options and regulations on our blog post "Decoding W-2 Requirements"

Get the Details

2] Software Functionality

Your W-2 Software will determine which forms to use.

Each software supports different tW-2 layouts. First, check to see if you should use blank W-2 paper or preprinted forms, then determine which layout you need. Many systems support Official W2 Forms, as well as 2up, 3up or 4up condensed formats.

The best way to ensure compatibility is to print a sample form and use it to compare when shopping.

Preprinted W2 Forms are for software that prints the only the employee data. Boxes are preprinted on the form and employee instructions are preprinted on the back.

Blank W2 paper is for software that prints the boxes and data. Employee instructions are often printed on the back. If they aren't, you must supply them per IRS regulations.

Don't Forget W2 Envelopes

Use compatible envelopes to ensure the employee and return addresses show through the windows correctly.

W-3 Transmittal Forms

When mailing W2 Copy A forms to the SSA, include one W3 form for each payer. This form summarizes all of the W-2 forms submitted by the employer.

2up W-2 Forms

2 Forms per page; ideal for 4pt forms
Print 1 sheet for each employee: Copies B & C

NOTE** All Government Copies MUST be printed in 2up layout.

3up W-2 Forms

3 Forms per page; ideal for 6pt forms
Print 1 sheet for each employee: Copies B, C, 2

4up W-2 Forms

4 Forms per page; ideal for 8pt forms
Print 1 sheet for each employee: Copies B, C, 2, 2