January is a hectic yet essential month for all businesses. Here, you have to pay tax for the money you’ve earned throughout the tax year, either as an employee or a contractor.
This information is submitted to the IRS or Social Security administration in an annual tax reporting form for all the tax withheld for the year. Since the 2020 taxpaying date is due in January, you must sort out all the information by the end of January to save yourself from the hassle.
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In today’s blog, we’ll focus on providing you with in-depth details about W2 and 1099 tax filing types, filing deadlines, along with sources where you can get the form from and where to submit them.
Understanding W-2 and 1099 Forms
The W2 form is used to report payments and other forms of wages to employees, while the 1099 paper reports payments to independent contractors and non-employees. For this, each business classifies its worker’s type to file the appropriate tax form correctly.
The W2 form lists all taxable wages and income tax withholding, and payments of Medicare and Social Security taxes. This form also includes various benefits, both taxable and tax-free, offered to the employee. The employer is responsible for filling these forms for each employee regardless of the compensation paid throughout the year.
The 1099 form lists the gross amount of all the payments made to non-employees or independent contractors during the calendar year. Here, the business for whom the services were provided is responsible for filing the form. If you are filing for 2019, use Form 1099-MISC, and for 2020 and further, use Form 1099-NEC.
The Important Deadlines for Filing W-2’s/1099s Form
Both forms W-2 and 1099 are required to be submitted to the service provider by January 31st. The same deadline applies for submission in the government sector.
Moreover, a copy of the 1099 form and a transmittal form should be submitted to the IRS payments. A copy of the W3 form and a transmittal form should be forwarded to the Social Security Service within the same deadline.
If any business can’t meet the deadline, they can request an extension in the submission date beforehand. Here are a few cases in which the IRS accepts the extension request.
- The business experienced a catastrophic event such as fire, natural disaster, or any other casualty in a disaster area declared by the federal government.
- The filing agent dies or meets any unfavorable situation before the due date.
- The filer didn’t receive the information required to complete the form from the third parties on time.
- The business is filing the documents for its first year.
Where to Get W-2/1099 Forms
You can either order them online or get the forms from your nearest local store. If your company uses business tax preparation software, W-2 and 1099 forms are available on them as well. Otherwise, you can directly order these forms from the IRS by going to their taxes online forms requesting a page.
Note that you cannot download copies of these forms from the internet. These forms have a specific red color ink that cannot be duplicated.
Submission of W-2 and 1099 Forms
You can submit both W-2 and 1099 tax filing forms online on the Business Services Online portal and FIRE System, respectively. You must ensure that your system can create a file in the same format because scanned or PDF copies are not acceptable.
Still confused about how the tax filing works in Denver, CO? Let the experts at Prime Accounting help you get started with preparing for the filings today. Click here to share your business monetary management responsibilities with us!