Should Small Businesses Submit a 1099 Form Through Online Filing?

More small businesses than ever before choose to submit a 1099 form with online filing. Some businesses may feel reluctant to stray from their comfort zone and mail the forms that their business generates using software as another common option. You can eliminate manual filing without needing to make a complete 180-switch to an unfamiliar process. Disc-based programs offer many of the same features as filing 1099 forms online. Look for a system with an electronic filing option for your 1099s, W-2s, and other required forms.

Advanced Micro Solutions is a disc-based modular suite of tools for small businesses and accountants. Our software supports users in all 50 states, plus the District of Columbia and Puerto Rico. Explore today our two e-file options: E-File Direct (add-on) or E-File Services.


Disc-Based Software vs. 1099 Form Online Filing

Weigh your business’s options carefully before you decide whether or not to file 1099s online. Consider some of the benefits and drawbacks when you file online versus when you invest in disc-based software.



Convenience – You may consider filing 1099s online if your business is remote or you do not have an office space. A disc-based program generally requires a centralized location unless a single person is responsible for filing forms. Send all reports from any location and at any time with online submissions. 

Affordability – Save money by reporting online or with a disc-based system compared to paying a fee to a tax professional. Certain software offers a flat rate without any subscriptions or hidden costs.

Speed – Submit a 1099 form through online filing with greater efficiency. Complete your business’s 1099s in hours or minutes without needing to print or mail any documents.



Complexity – There is no guarantee that filing online is easier. Take into consideration whether the business has a complex tax situation. Find out early on if an online program will require you to input a lot of data or answer time-consuming questions.

Less Support – Check if an online vendor offers reliable customer support. Online vendors may offer less comprehensive support than a disc-based vendor. Look for 24/7 support if you think it is something that your team will need.

Security – Confirm that a website encrypts and protects your business’s financial and personal data. Disc-based software often emphasizes its added layers of protection against hackers and data leaks compared to when you send a 1099 form by online filing.


What are the Advantages of Electronic Filing?

Meet your next software solution somewhere in the middle. Find a disc-based program that offers e-file options. The benefits of electronically filing your 1099 forms include:

Greater Accuracy – Tax and accounting software catches many types of 1099 errors before you send your business’s forms to the Internal Revenue Service. Keep in mind that software does not completely eliminate the risk of making mistakes. Consider a tax software with an e-file option so you can send any necessary corrections quicker. Amending your forms immediately will minimize your penalties or potential fees.

No More Expensive Forms – Reduce your expenses in more ways than simply sending a 1099 form via online filing. Generate all 1099 forms with software instead of ordering too many or not enough forms from the IRS. Cut out the cost of printing when you electronically file these forms directly from your system.

Improved Efficiency – Stop spending days or weeks trying to organize your 1099 forms or find important documents. Cut down processing time with an e-file solution. Receive quicker refunds for your business and faster confirmation that the IRS received your paperwork.


Why Your Business Should Choose AMS Software

Choose AMS for our base W-2/1099 Forms Filer program and expand the database with any of our six optional add-on modules. These modules include Software Generated Forms, Affordable Care Act Filer, Forms Filer Plus, 1042-S Filer, AMS Payroll, and an E-Filer.

Purchase E-File Direct for a flat fee with an unlimited number of form filings. Upload your data to the IRS or Social Security Administration websites using their designated systems. Verify, view, and print any files with our module. You may also create state W-2 files as you require them.

Select E-File Services if it makes more sense to pay a fee per form. Electronically file your 1099 forms via a third-party vendor. Determine the service level your business requires and customize your entire e-file experience based on your schedule and budget.

Find an alternative to submitting a 1099 form via online filing with Advanced Micro Solutions. Download our free 1099-etc Demo software today and get started.

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.