A 1099 reporting software can save businesses time and money during the end-of-year tax process. Whether you’ve never filed a 1099 form or just need additional support as your business grows, here’s what you need to know about 1099 reporting.
How to Report a 1099
1099 reporting is straightforward, but it has more steps than the average tax form. If you’re new to business tax filing, here’s what to expect:
- Prepare your documents. Every time you work with a contractor, they will provide you with a W-9 form. Businesses keep these forms for reference during the end-of-year tax season. A W-2/1099 Forms Filer can help record and export this essential data.
- Buy your forms. At least one copy of the 1099 form needs to be printed with special ink. We recommend that you order directly from Nelco or the IRS. If you use a payroll software and plan to file electronically, you will need fewer printed forms, but you will still need the special red ink documents.
- Fill out your 1099s. The 1099 requires just a few pieces of information. This includes identifying data about the contractor and payment history. If you have a 1099 reporting software, this step is very easy.
- Distribute and submit your 1099s. For each 1099 form you generate, you will need four additional copies. These copies go to various entities, including the IRS, a state tax agency, the recipient, and your filing cabinet.
A 1099 software can expedite almost every part of this process. While businesses will still need to obtain special 1099 forms from the IRS, using a 1099 software will make the process more efficient and accurate – no matter how many contractors you have.
Can I Prepare My Own 1099 Forms?
Because the 1099 requires several copies, things can get complicated very quickly. As a result, we rarely advise business owners to prepare their own 1099 forms. Even if you have just a few 1099s to fill out, your filing burden will be five times the number of 1099 workers you contracted. Instead, consider a low-cost 1099 reporting software. Advanced Micro Solutions has a budget-friendly option.
Consider 1099 Reporting Software from AMS
Most businesses need 1099 reporting support, but many think that software tools are out of their budget. AMS aims to change that. Our W-2/1099 Forms Filer, the base platform in our modular suite, is an effective and affordable tool. Fill out and distribute 1099 forms faster than ever before, all while cutting your risk of making a mistake. For those who wish to electronically file year-end W-2 and 1099 forms, select the E-Filer add-on module for support.
In addition to providing 1099 software, AMS offers a full suite of budget- and small-business-friendly software tools. If you’re in need of 1099 support, you likely need help somewhere else in the accounting process. Browse our catalogue below:
- Affordable Care Act Filer
- 1042-S Filer
- Software Generated Forms
- AMS E-File Software
- Forms Filer Plus
If you’re not sure whether AMS is the right option, check out our free demo software. Those with lingering questions can call our Sales and Information Team at 800-536-1099.