Utilize comprehensive tax software to avoid major 1099 form penalties. Stay compliant to avoid needing to file corrections or getting a visit from the Internal Revenue Service. Compliance software helps prevent businesses from incurring high fines or penalty fees. Small businesses must stay vigilant to protect themselves from getting hit hard with fees. Look for tax software that offers more than simple calculations and some generic reports. Invest in a system that provides tax tables and keeps you up-to-date and efficient so that you never miss deadlines.
Get started today with Advanced Micro Solutions’ base program and any of our six optional add-on modules. File quarterly reports and enter payroll and non-employee compensation throughout the year. Stay ahead of filing deadlines all year and reduce the risk of 1099 form penalties for late filing.
How Does Software Help to Prevent 1099 Form Penalties?
Stay compliant and avoid some of the common 1099 mistakes with reliable software. Tools to look for in 1099 software are:
Automation – Look for 1099 software that includes tools such as a Common Payee File. Use the feature to select a payee across payers or 1099 forms. Enter certain information only one time. Cut down repetitive entries to reduce the risk of human error. Another good automation tool is when your software lets you select fields for calculation. Get rid of manual calculations completely with 1099 software.
Usability – Software should provide intuitive solutions for its users. Easy payer and employee set-up is the first step to better ensuring that your business avoids 1099 form penalties. Find a program that allows you to easily enter data onto an entry screen that looks like an actual tax form. Save time and resources by not needing to contend with a steep learning curve.
Easy Importing and Exporting – Confirm that your new software provides excellent importing and exporting capabilities. Third party application compatibility is extremely important. The best software does not limit its users to one or two options. A program like AMS lets users import its data from QuickBooks, PeachTree, Excel, and Tab Delimited Text files. Export the data to a Tab Delimited Text file and/or QuickBooks General Journal.
Up-to-Date Tax Resources – Avoid incurring multiple 1099 form penalties when your software includes regularly updated state and federal tax tables. Make sure that you always have access to the necessary state tax tables for where your business operates. Not needing to hunt on the internet for regulations reduces the odds of the IRS issuing 1099 form penalties for late filing.
Hiring An Accountant Vs. Using Tax Software
Small and medium-sized businesses encounter unique benefits and drawbacks when they use in-house tax software or hire an accountant. Weigh the options that make the most sense for a business in your industry and of your size. Some advantages of using an accountant are:
Tax professionals may have access to better software. A small business may have a harder time accessing advanced software due to budgetary limitations. These programs reduce 1099 form penalties and automate a tremendous amount of data entries.
An accountant oftentimes has years of expertise. Accountants will know the ways that your business can save money each tax year. They will also always be in-the-know about 1099 form penalties for late filing and make sure that you do not miss deadlines.
Do not overlook the advantages of investing in tax software. Some are:
In-house tax software may provide more affordable options. The cost of tax preparation software varies between providers. See what the best options are for your company’s budget. Look for a program that does not require you to pay for extraneous tools that you will not use.
Businesses have greater control over when an in-house accountant files reports. Some businesses prefer to manage tax reporting and run payroll in-house to have more consistency and control. Keep on top of deadlines and when you file forms with your own software system.
Should My Business Get AMS Software?
Stay vigilant and take proactive steps to minimize 1099 form penalties whether you get new software tomorrow or in the future. AMS’ base W-2/1099 Forms Filer program offers a Table Report tool that generates hash totals of SSNs and TINs. Check for data entry accuracy and limit the time that you spend reviewing individual entries. AMS supports businesses in all 50 states, plus the District of Columbia and Puerto Rico.
The six optional AMS add-on modules are Software Generated Forms, E-File, Forms Filer Plus, AMS Payroll, Affordable Care Act Filer, and the 1042-S Filer. See how the modules interact with each other and keep users compliant with our free 1099-etc Demo software.