Rules for E-Filing 1099 and W-2 Forms in 2023

Prioritize e-filing 1099 and W-2 forms in 2023 regardless of whether you manage a small, medium-sized, or large business. Filing all of your tax forms electronically to the Internal Revenue Service saves you time and resources. Eliminate the process of aligning your documents manually or paying for the forms and printer ink. The IRS already insists that businesses file electronically for 10 or more information returns and W-2 forms within the calendar year. Switch to e-filing today to speed up the process and reduce the risk of your business forgetting to send any forms.

Advanced Micro Solutions is a full modular accounting suite of tools. We designed our add-on E-File software with small business’s needs as a priority. Invest in our base W-2/1099 Forms Filer software program and any of our optional add-on modules to generate and file different 1099, W-2, and related forms.


When to Choose E-Filing 1099 and W-2 Forms in 2023

Keep yourself aware of when you must e-file your 1099 and W-2 forms, when it makes sense to e-file, and when e-filing is not necessary. The IRS or other relevant agencies may penalize your business if you fail to comply with new or established regulations.

You must e-file forms for 12 independent contractors that you paid $600 or more in the past calendar year. Send 1099-NEC forms to the contractors regardless of whether you brought on any employees during the same year.

E-file or paper file if you employed five employees for the past calendar year. File your W-2 forms with paper as long as the number of your total returns is below the 10-return threshold.

Select an e-filing 1099 and W-2 forms in 2023 method if you employed five employees and paid five contractors $600 or more each in a calendar year. E-file both types of forms for these worker classifications.

E-file your 1099 and W-2 forms if you paid $600 or more to four independent contractors and employed five employees. You must also submit a Form 1099-MISC if you paid more than $600 to your attorney for their legal services.

Choose your filing preference if you had five employees and paid seven of your contractors less than $600 each in a calendar year. Do not complete and file any 1099-NEC forms for the contractors. You may file or e-file the five paper W-2 forms based on your preference.


What are the Latest IRS E-Filing Requirements?

The major e-filing 1099 and W-2 forms change in 2024 is that businesses must submit all forms electronically if their information returns equal 10 or more. Make sure that you know how all the specific e-filing requirement changes affect you and your business.

There is no longer a 250-return threshold. The new IRS regulation means the old rule that you must e-file only if you have 250 or more returns of the same type is done. The information return threshold is now 10.

You must factor in all of your returns for the new threshold. Businesses must aggregate almost all of their information return types to see whether they pass the 10-return threshold. Correcting a W-2 form with Form W-2c may be an exception. Choose e-filing 1099 and W-2 forms when you submit a correction for an already e-filed form.

Certain partnerships must e-file. Does your partnership have more than 100 partners? Is the partnership responsible for filing a minimum of 10 returns for a taxable year? The IRS requires that your partnership e-file these returns in either circumstance.

There is no longer an electronic filing exception for corporations. Review the total assets of your corporation before the end of the taxable year. The IRS eliminated an e-filing exemption for income tax returns that report year-end assets below $10 million.


Why Small Businesses E-File with AMS

Small businesses prefer our E-File software for specific reasons. Our software eliminates the need to load special forms into your business’s printer. Choose from our available E-File Direct or E-File Services options based on how you want to complete your e-file payment and process. Our E-File Direct is an add-on module payroll system with a flat fee. Simply upload your company data to the IRS or Social Security Administration and verify, view, or print any files.

Select E-File Services for e-filing 1099 and W-2 forms if it makes more sense to pay per form. Choose your service level before filing business forms electronically with a third-party vendor. Download our free 1099-etc Demo software today and explore how we delivered each e-filer option with full customizability and budgetary consideration for small businesses.

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.