Knowing which forms to use as a small business owner can feel overwhelming without the right software solution. Getting a program that supports all necessary documents for your business’s needs is essential. Having comprehensive 1099 support will assist small businesses in:
- Meeting all of your deadlines
- Improving accuracy and total compliance
- Reducing the amount of money spent on printing, mailing, and paperwork
- Keeping your business organized in the event of audit triggers
Distinguishing whether you need to file Form 1099-NEC for contractors or Form 1099-MISC for certain non-services, and doing it accurately, became especially important in the last five years. Using Advanced Micro Solutions’ base W-2/1099 Forms Filer program is a trusted way to utilize software that supports both of these forms and many other 1099 and related forms.
Advanced Micro Solutions’ 1099-etc software is the most affordable solution on the market and is highly customizable for software users who need a scalable solution.
Our software users can also purchase six optional add-on modules to build out a full-accounting suite of tools. How you design your program can evolve, along with your business’s needs, so a business does not pay for features that it does not need.
When is a 1099-NEC vs. 1099-MISC Appropriate?
It never hurts to get a quick refresher on the differences between these two IRS tax forms. It will help better ensure that you avoid careless and avoidable errors that can result in more time and money spent by your business during tax season.
Form 1099-NEC
The form is used to report non-employee compensation, including:
- Payments of $600 or more in a tax year to independent contractors for their services
- Professional fees (consultants, designers, non-main accountants)
- Commissions
- Fees for unincorporated businesses (sole proprietors or LLCs)
Form 1099-MISC
The form is used to report the types of 1099 reportable income not covered by Form 1099-NEC. Common categories of income to report on Form 1099-MISC include:
- Rent payments
- Royalties
- Prizes and/or awards
- Specific attorney payments
- Medical and healthcare payments
How Can Tax Software Help with Filing 1099 Forms?
January does not need to become one of the most stressful times of the year for small business owners and their teams. Even paying a few contractors or vendors can become overwhelming if you are not used to handling:
- Different rules and regulations
- Deadlines for different forms
- Paperwork requirements
Trustworthy tax and payroll software is a game-changer in a few significant ways.
You will always know which forms to use and how to complete them
Submitting the wrong form can cause delays, penalties, and needing to spend more time and money on filing corrected forms. If you are unsure about which form to use for 2026, ask yourself:
- Did you pay a contractor $600 or more for services rendered?
- Did you make a payment to an attorney?
- Did anyone receive income in the form of rent or royalties?
Software offers auto-calculation features to reduce manual errors
Manually adding up what you paid to different independent contractors and vendors can result in math errors and incomplete or inaccurate totals. Consider getting software that:
- Flags missing information (EINs or TINs)
- Pulls payment totals
- Offers a Common Payee File to eliminate needing to enter the same information
It will allow you to keep your contractor and vendor information in one location
Digging around in emails and filing cabinets should be a thing of the past. Finding any addresses or EINs is much easier with tax software. You can also:
- Track payments throughout a year
- View past 1099 forms
- Update any contractor details
- Store W-9 information
A modular suite of tools will give you e-filing capabilities
Filing your tax forms by hand will likely lead to more complications than solutions. Tax software will help you to store digital copies of your records and file electronically with the IRS. It also benefits you by eliminating the need for:
- Tracking deadlines the same way
- Addressing envelopes and mailing multiple forms
- Printing multiple copies for agencies, contractors, and yourself
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
Should My Business Use AMS Software?
We understand that small businesses have a lot of the same responsibilities as bigger ones. A big difference is that they often have less people to take care of their tasks. That is why getting software that works for you is essential.
Our W-2/1099 Forms Filer can work in tandem with the Software Generated Forms module. The other add-on modules that you may wish to consider are:
- E-File
- Forms Filer Plus
- AMS Payroll
- Affordable Care Act Filer
- 1042-S Filer
Download our free 1099-etc Demo software today and see how you can get started. If you have any software support questions, our team of live experts is happy to speak with you.