Which 1099 Software Updates Should Small Businesses Look For in 2023?

Planning ahead of a tax season for any new Internal Revenue Service regulations with 1099 software updates for 2023 features helps streamline tax preparation for small businesses. Small businesses need accounting and tax software that stays up-to-date with comprehensive tools and features. Invest in software that offers everything from recent form updates to tax tables. Outdated software may result in incurring penalties from the IRS or longer-lasting damage to your business.

We offer a full accounting suite of tools with our base W-2/1099 Forms Filer software and our six optional add-on modules. Download our free 1099-etc Demo software to learn how our regularly updated program can assist you with any changes to tax forms or regulations each tax season.


How Did 1099 Forms Change in 2023?

Knowing how 1099 forms change each year helps you determine which 1099 software updates features you will need in 2023 and beyond. Consider the 1099 forms that you regularly use and all adjustments that will affect how you generate and report your company’s data onto them.

Form 1099-K – The 1099-K form remained the same for 2023, but the filing threshold changed. Platforms must now send the form to merchants if a gross amount of total reportable payments for the calendar year surpasses $600. Businesses should ensure that their software provides a Form 1099-K generating option if the recent threshold can apply to them.

Form 1099-R – The IRS will make notable changes to the 2024 form version that the agency will process in 2025. The expected alterations include a redesign that reduces the number of pages for Form 1099-R. The IRS will remove Copy D and “Instructions for Payer”. The latest revision will include Copies B, C, and 2 on a single page.

Form 1099-MISC – The form remained the same for the past tax season and businesses did not need specific 1099 software updates for 2023 tools.

Form 1099-NEC – The last major change for Form 1099-NEC is its current use for reporting non-employee compensation, which began in 2020.


How Do 1099 Software Updates Support Form Changes?

Tax and accounting software streamlines your business’s tax and payroll management duties. Look for software that provides regular updates for several important reasons:

Cyber and Data Security – Old or outdated software may leave businesses vulnerable to lost data or outside security threats. Make sure even your disc-based software comes with updates to protect your company’s data from potential viruses.

New Features and Functionalities – Avoid falling behind competitors who have access to the best and newest accounting software features.

Integration – Users need to know that their core 1099 software updates will integrate with other systems or add-on modules. Do not limit your form filing or any other capabilities by forgetting to update your entire system.

Audits – You may make careless mistakes on your forms if you do not possess up-to-date tax tables or IRS form changes information for 2023. Overseers will not give you a break just because you forgot to update your program to reflect the newest standards.


How Does AMS Keep Small Businesses Up-to-Date?

We support small and larger-size businesses with our base W-2/1099 Forms Filer software that is a complete database system. The system generates a wide variety of 1099s, W-2s, and other related forms. Users can access 1099 software updates for 2023 as they enter data onto entry screens that look like the actual forms.

Consider your business’s size and needs when you prepare to make your next software decision. You may find that you need advanced technology or basic bookkeeping. We offer services for business needs across the board. Users can simply select our core product or create a full accounting suite of tools with our six-optional add-on modules. These modules include our: AMS Payroll, Software Generated Forms, Forms Filer Plus, E-File, 1042-S Filer, and Affordable Care Act Filer.

Updated features come with each of our add-on modules. AMS Payroll automatically calculates federal, state, and local payroll taxes in its program. The same module offers state and federal tax tables for users. Update these tables whenever you need them to reflect the most recent changes. Evaluate whether software program updates have hidden or extra fees before you purchase a program. Transparency is crucial with accounting software. Any software vendor should provide a support branch and frequently asked questions page to address business’s concerns and questions.

We are happy to address your questions and offer support at AMS. Visit our Help Center to navigate 1099 software updates for 2023 and access our video tutorials, download the latest updates, review software manuals, and more.

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.