Small Business Guide to Filing 1099 and W-2 Forms
Instructions and information for businesses that need to file 1099 and W-2 Forms for contractors or employees.
Get the basic run-down on how to choose the right forms for your software or how to file everything online in this blog post, or read the full guide to 1099 & W2 filing for small business here.
Options for Filing 1099 and W-2 Forms for Small Businesses
Your Accounting Software: Many types of accounting software will print 1099 and W-2 forms. Some will e-file payer copies. To print payer and recipient copies, purchase forms compatible with the software as there are many layouts available. Print copies, stuff envelopes and mail. Purchase forms for your Software >
Specialized 1099 & W-2 Software: Prints all 1099 and W-2 forms. Will e-file payer copies. To print payer and recipient copies, purchase forms compatible with the software as there are many layouts available. Print copies, stuff envelopes and mail. Purchase Specialized 1099 & W-2 Software >
Online Filing: The newest, and easiest way to file one or hundreds of 1099 & W-2 forms! Online filing takes care of printing and mailing to recipients, as well as e-filing with Federal and State Governments. You simply type in the data or import it from your accounting software. The online filing system will do the rest! Learn more about Online Filing of 1099 and W2 >
Choosing the Right 1099 Forms
1] Which 1099 Form to Use
1099-NEC is most common for small business. It is used for contractors and consultants who you have paid $600+ during the tax year. Other 1099 Forms are available. Shop for 1099 Forms>
2] Number of Parts Needed
The number of parts you need for a 1099-NEC is based on where you need to file government copies: Federal only, State or City:
Copy A: Federal Copy for the IRS
Copy B: Recipient Copy
Copy C/2: Payer Copy for State, Local or File
3] Type of Forms
Your software will print on either:
Pre-printed 1099 forms – software will print only the recipient and payer data
Blank perforated 1099 paper – software will print the entire form at once, including boxes and labels with the recipient and payer data.
Choosing the Right W-2 Forms
Key Factors to Selecting the Right W-2 Forms
1] Government Requirements
The number of W-2 Form parts needed corresponds to the government agencies you are reporting to:
- Federal Only – 4 parts (Copies A, D-1, B, C)
- State and Federal – 6 parts (Copies A, D-1, B, C, 2)
- City, State and Federal – 8 parts (Copies A, D-1, B, C, 2, 2)
Read more in our blog: Decoding W-2 Copy Requirements >
2] Software Functionality
Some software will e-file W-2s to the government. But you will still need to print employee copies regardless. Your software will either print the form data only on Preprinted W-2 Forms or will use Blank W-2 Paper to print the entire form at once, including the boxes, labels and data.
The layout of the forms will vary depending on your software. They could be in a 2up, 3up or 4up layout if your software supports it. This is where all the forms for a single employee will be printed on one page so you can simply fold and mail one piece of paper. All Government copies must be printed in the Official 2up layout.
If you’re over the hassle of printing and mailing W-2 Forms, try DiscountEfile.com! We e-file, print and mail for you for about $4 per form or less.
QuickBooks Users Click Here to Learn How to File W-2 Forms with QuickBooks >
1099 & W-2 Filing Deadlines
January 31 – Recipient copies for all W2 and 1099 forms; W2, 1099-NEC & 1099-MISC Copy A mailed or e-filed to IRS
February 28 – Paper Copy A and Transmittals mailed to the IRS (all 1099s except 1099NEC and MISC)
March 3 – E-file Copy A to IRS or SSA (all 1099s except 1099NEC and MISC)
Most states have the same deadlines as the Federal government.
Navigating the 2023 IRS E-Filing Threshold Change for Small Businesses: A Guide to Using DiscountEfile.com
If your business needs to file 10 or more 1099 & W2 forms combined, per EIN, you must e-file with the IRS and SSA in 2023. DiscountEfile.com makes it easy!
1099-NEC ‘Copies’, or parts, report non-employee compensation to recipients and government agencies and help ensure accuracy of income tax filing. 1099-NEC Forms are filled out by the payer and provided to the recipient and government agency.
Understand the Different W2 Formats Easily! Compare Traditional 2up W2 Forms to 4up & 3up W2 Forms for Efficient Printing & Mailing of Employee Copies.