Learning How to File Taxes with a 1099 and W2 Worker

As a business owner, tax season comes with responsibilities. There are many guidelines to follow each year. The first thing to know is how to file taxes with a 1099 and w2 worker. The instructions for distributing and filing the forms differ for 1099 independent contractors and W2 employees. For your ease, we compiled what you need to know in terms of how to file taxes with a w2 and 1099 form.



How Do You Distribute 1099/W2 Forms?

If you are a long-time business owner, you have probably noticed the 1099 form changes. Still, it may be your first time working with independent contractors. The first thing you should do with a freelance worker is know who needs a Form 1099-NEC. You must send these forms to vendors that you paid more than $600 in the past year.

The next step in how to file taxes with a 1099 and w2 worker is knowing about Form W-9. When you issue a Form 1099, you need certain information. Request a W-9 from the vendors that you anticipate paying more than $600. Requesting a W-9 provides you with their mailing information and Tax ID number. A W-9 will also tell you if they are a corporation or not and help you know if you are required to send them a 1099 in the future.

You must order 1099 forms from the IRS and pick them up at an IRS service center. You cannot print them from the IRS’ website.

Employers must send a copy of Form W-2 to all cash and noncash wage earners whose taxes were withheld. The most important thing to know about how to file taxes with a w2 and 1099 employee is you are required to distribute the W-2s by Jan. 31. You can mail the copies on or before the due date.


How to File Taxes with a 1099 and W2 Form

For Form 1099 workers, how you file their forms depends on the number of forms. You must file electronically if your company has more than 250 Form 1099s. Failure to comply with guidelines will result in a penalty. The penalty is up to $100 per return unless your company provides the IRS with an acceptable reason.

When you file employee W-2 forms, make sure to only use the employee’s Social Security number. The same rule applies for employees with independent tax identification numbers. Social Security numbers provide the IRS with confirmation that any payments reported align with what is shown on an employee’s tax returns.



Why Use Advanced Micro Solution?

Our W-2 and 1099 Software Filer is a complete database system. It generates all kinds of 1099 and W-2 forms. As a company navigates how to file taxes with a 1099 and w2 form, there is no need to rely on manual filing. Even with fewer forms, our software saves time by only requiring users to enter payer information once. Additionally, the module interaction lets users file forms directly to the IRS and the Social Security Administration.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.