Prioritize finding 1099 form services that allow you to pay multiple classifications of workers in your business. Avoid manually tracking and reporting for your independent contractors with an affordable and comprehensive 1099 system. Programs that specialize in creating forms for an independent contractor need certain tools. Look for a system with features that your business knows will satisfy many of your workers and streamline all regular reporting duties. Automation is one of the most essential tools for 1099 software.
Disc-based software is a great in-house option for small businesses not looking to outsource 1099 reporting support. Advanced Micro Solutions’ W-2/1099 Forms Filer keeps data secure while offering many of the same efficient features as cloud-based software. Stay within your budget without sacrificing the quality of your forms or overall tracking.
Best Software Practices for 1099 Form Services
Stay proactive and aware of all your business’s responsibilities even as you use 1099 software. Software should not make you complacent or laid back about your deadlines. Utilize a program to make your reporting easier, but no less thorough, in a few ways.
Start Early – All businesses know that reporting independent contractors requires you to use more than one type of form. Confirm that your business already distributed and collected the necessary W-9 forms from all workers. Collect these forms throughout the year. Avoid rushing and reduce the risk of errors by not sending forms at the last minute.
Stay Organized – Streamline data management through 1099 form services. Make sure that your business correctly categorizes its contractor and vendor payments. Look for a complete database system that centralizes your data and integrates with all of your other add-on tools.
Update Features – Ensure that you use the most up-to-date version of your 1099 software. You may decide to add and remove features as time progresses based on your business’s needs. Check to see that your chosen platform integrates with other third party applications that your business utilizes. Generating, distributing, and electronically filing forms should be as easy as a few simple clicks.
Know Deadlines – Avoid high penalty fees and fines from the Internal Revenue Service with reliable 1099 form services. Eliminate mailing your forms by a certain date. Look for a program that lets you send completed documents directly from the software to the agency.
Is Software for 1099 Forms Worth It?
Ask yourself certain questions to determine if now is the best time to invest in 1099 software for your small business. Some of the main questions to consider are:
Do I need help improving our form filing efficiency? Give yourself some leeway and options as you investigate software for its e-filing capabilities. Keep in mind that form services for 1099s also allow you to distribute for other reasons like direct deposits. Not all agencies and workers want or need to receive forms and compensation in the exact same way.
Do we need special 1099 form services features that go beyond manual filing? Invest in software that benefits your business’s short- and long-term goals. Consider whether or not the program allows you to add features as you need them. The best system will not make you buy its product with unnecessary bells and whistles.
Am I regularly mixing up or forgetting tax rules? Find a software service that includes and regularly updates state and federal tax tables. Navigating tax seasons and completing all your 1099 forms can be strenuous enough without needing to hunt down the correct tax guidelines. Minimize the risk of making errors or selecting the wrong regulation for a state with software.
Has the business lost multiple forms due to disorganization? Organize your files with 1099 software throughout the entire year. Speak with a potential vendor to see whether your software would also come equipped with payer backup and restore features. There is no reason for your business to misplace important data or forms.
Why AMS Is Right For Small Businesses
Do not feel like you have to take our word for it. See firsthand how AMS software makes 1099 reporting easier. Download our free 1099-etc Demo software today to explore the full extent of our 1099 form services. We support up to 99,999 employees or recipients per payer across all 50 states, plus the District of Columbia and Puerto Rico. Enter data onto entry screens that resemble actual forms. Select specific fields to calculate data. Build a full accounting suite of tools with our base program and any of our six optional modules. The add-on modules include: Software Generated Forms, E-File, Affordable Care Act Filer, 1042-S Filer, AMS Payroll, and Forms Filer Plus.