How Do You Correct a 1099 After It Has Been Filed?

Act promptly once you realize that you need to correct a 1099 after it has been filed. Failing to fix a 1099 error may lead to costly consequences for your business. There are several reasons why businesses may need to make amendments. Perhaps a contractor provided false or inaccurate information on a W-9 form. Maybe […]

How Do You File a 1099 Correction?

Rectifying any mistakes that you made on Form 1099 is simple enough. You need to complete a new, accurate form. The next step is for you to send it directly to the Internal Revenue Service. Attach a Form 1096 with your new version if you send an amended paper version. Make sure to check the […]

How Far Back Can You Correct a W-2?

File a W-2C for the current year or as far back as three years. Correct your W-2s as soon as you find an error on a form. The Internal Revenue Service may issue fines varying in degree if you make mistakes on a W-2. Proving that the mistakes resulted from a reasonable cause may lessen […]

I Forgot to Send 1099: What Should I Do?

The short answer is that you will pay a fine. Missing your deadlines for 1099 forms can become costly if you do not rectify the issue with the Internal Revenue Service. Your business needs to contact the IRS in order to determine exactly how much you owe them. The severity of your fine relates to […]

Do You Need to Issue a 1099 for Software Subscriptions?

Surprisingly, the answer is no. New employers need to think about 1099 filings and which transactions require annual reporting. You must submit Form 1099 to report a number of non-employee compensations. Services performed may range from independent contractor pay to awards, prizes, and rents. There are exceptions for what employers must report and reporting software […]

Is There a Difference Between W-2 and Corp-to-Corp Work?

Yes, there are a number of differences between W-2 and corp-to-corp employment. Hiring a W-2 employee means that you will work with them for an extended period of time. Employers pay specific taxes and withhold from W-2 wage earners. Hiring a C2C worker is generally short term. You establish a set timeframe with another corporation […]

Can You 1099 an Employee?

The answer is not really. How we talk about W-2 and 1099 employees is more than a little complex. However, if you want to know if you can use a 1099 form for a W-2 worker, then it is a straightforward no.   The Internal Revenue Service distinguishes employees and independent contractors in several specific […]

Can I Pay an Employee as a Contractor?

First things first, no. The way that you pay your employees and contractors is one of the biggest differences between the two types of workers. The Internal Revenue Service specifically details the importance of accurate worker classifications. How you classify a worker affects the way that you pay them, whether or not you withhold taxes […]

Can I Email My Employees Their W-2?

Technically, yes, but that does not mean that you should do it. Form W-2 contains sensitive employee information. The Internal Revenue Service outlines strict guidelines for secure electronic distribution. The IRS does not list email distribution as a secure method for sending tax or wage documentation.   You should not email any W-2 forms, but […]

Can I 1099 an Employee?

The slightly nuanced answer is, sort of. Businesses hire 1099 employees, but they must classify them as independent contractors. Understand the terminology and distinctions before you try to send a Form 1099 to your W-2 employees.   Employees cannot send 1099 forms to their full- or part-time employees. The Internal Revenue Service outlines its strict […]