Getting yourself and your business the best 1099 e-file software is one of the essential ways to protect a small business’s tax and financial interests. Investing in a better e-filer allows users to easily create and submit forms to the Internal Revenue Service, but it can do much more for a business. Utilizing the right software for your small business should help you to:
- Generate recipient copies of forms
- Manage all of your contractor records
- Validate contractor information
- Improve record retention for audits
- Access state filing support
Advanced Micro Solutions’ 1099-etc E-File software is a flexible solution for small businesses on a budget. Along with being the most affordable solution on the market, our E-Filer delivers two distinct software options: E-File Direct (add-on module) or E-File Services (via third-party vendor). Download our free 1099-etc Demo software today and see how our system works.
Who Needs the Best 1099 E-File Software for Small Businesses?
Small business owners are often the main users when it comes time to get 1099 e-file software. Paying independent contractors, seasonal workers, or project-based workers requires all users to have a specific set of tools. It also provides them with a more affordable alternative to hiring outsourced support.
There are other types of workers who can also benefit from using 1099 e-file software, such as:
- Accountants and bookkeepers: These outsourced professionals or employees can use software to better manage how they file documents for multiple clients. The best 1099 e-file software provides tools that support clients with bulk filing and for multiple locations.
- Payroll and HR managers: If a business pays both W-2 employees and independent contractors, using e-file software simplifies how you distribute forms to each necessary party by the appropriate deadline.
There is a less than 1% error rate for e-filed tax returns versus 21% for paper returns.
Key Features to Look For in 1099 E-File Software
Every small business has its own unique needs, but there are certain fundamental tools to look for when you get a new 1099 e-file program.
- Ease of use
- IRS approval
- Integration with other software
- Data validation
Ease of Use – Getting software with an intuitive, menu-driven format will help you to save time and resources. Small businesses or accountants who have guided filing workflows may reduce their mistakes and have more time to spend on other essential management tasks. Importing a contractor or client’s information from spreadsheets is also less error prone than manual entry.
IRS Approval – Make sure to speak with your software provider and confirm that any program supports official IRS electronic filing systems. Guaranteeing that your software will keep you in complete compliance with evolving IRS requirements is key.
Integration – It can be easy to get caught up in the tools that you want and overlook whether or not the overall system is compatible with your other ones. Review all third-party applications and confirm that your e-file software will work alongside your accounting system. Automating all form generation and 1099 contractor payments should be a priority.
Data Validation – Making sure that all of your TINs match and that you can validate your data will help to streamline how you verify contractor information. Reduce the IRS rejection rates so you can free up your time for other tax-related tasks or other duties.
What to Expect with 1099 E-File Software Pricing
There are typical pricing models when it comes to getting e-file software:
- Per-form pricing
- Subscription pricing
- Additional fees
Per-form pricing is exceptionally common for small businesses. Accounting firms tend to be the ones who lean more into subscription pricing, whether it is a monthly or annual plan. You might find that your best bet is to get software with options, like AMS. Our E-Filer lets users choose between a program with a flat fee and unlimited number of form filings, or a fee per form.
Check with your provider to see what additional fees may exist. Common add-ons may include:
- State filing fees
- TIN matching
- Mailing paper copies
Knowing what to expect from your software before you get it is how you make a lasting, worthwhile investment.
Is AMS Software Right for Me?
Small businesses do not need to settle for “second best” when they get desktop-based solutions rather than cloud-based software. An affordable system like our 1099-etc E-File software has an option for each type of users’ needs.
E-File Direct
- Flat fee
- Unlimited number of form filings
- Users can verify, view, and print files
E-File Services
- Volume pricing (fee per form)
- Forms are e-filed through a third-party vendor
- Different service levels available