When it’s time to file the new Form 1099-NEC, it’s important to choose the best filing method for your business.
A little background information: The IRS released a new Form 1099-NEC on November 18, 2020, changing how employers report nonemployee compensation for the 2020 tax year. Businesses that paid a nonemployee or independent contractor more than $600 need to file Form 1099-NEC by February 1, 2021, to report those payments to the IRS. Employers are also required to mail a copy to their recipients by the February 1st deadline.
As you plan to meet your deadline, here are 7 reasons employers choose to e-file Form 1099-NEC for 2020 tax year.
1- The IRS Recommends E-filing
The number one reason why e-filing is a smart business decision for companies of all sizes is that the IRS recommends it. Filing Form 1099-NEC online is safe for your business and more convenient for the IRS. E-filing also lends itself to faster processing, which means less wait time for your business.
Click here for instructions on how to file Form 1099-NEC for the 2020 tax year.
2- E-filing Helps You Avoid Form 1099-NEC Mistakes
When you file Form 1099-NEC with ExpressEfille, our software runs an internal audit, checking your information for mistakes and discrepancies that could lead to IRS rejection. Especially when filing a new form for the first time, it’s important to have error checks in place.
3- Instant Filing Status
This year, it’s time to cut out all the mailing lag times and paper form delays when you meet your deadline. When you e-file Form 1099-NEC, your information is transmitted directly to the IRS. Once the IRS has processed your return, you will be notified immediately.
4- E-filing Makes Recipient Copies Easy
Recipient copies are a major factor that employers need to consider when they’re deciding how to file Form 1099-NEC for 2020. The IRS requires businesses to provide nonemployees with a copy of Form 1099-NEC by the February 01, 2021 deadline. This means printing, addressing, and mailing a copy of your return to every single nonemployee payee. For busy business owners and employers, ExpressEfile offers the option to delegate recipient copies in a single click.
Employers can choose ExpressEfile’s postal mailing option and let our team handle the whole recipient copy process on their behalf.
5- Get Questions Answered When You E-file
Form 1099-NEC is a new requirement for reporting nonemployee compensation, so it’s understandable to run into questions. When you file Form 1099-NEC online with ExpressEfile, you can always rely on friendly, U.S.-based email and chat support.
6- E-filing is Easy, Organized, and Secure
E-filing Form 1099-NEC is a great option for businesses because it makes every part of the filing process simple. Employers can enter all their information easily and file Form 1099-NEC in minutes. If you file with ExpressEfile, you can monitor the status of your returns from your ExpressEfile account. After the IRS processes your forms, you can still access and review them at any time for safe and easy record keeping.
7- E-filing Form 1099-NEC with ExpressEfile is Affordable
At ExpressEfile, we value small businesses and all the ways they contribute to our communities. As a thank you, we offer a great filing experience for the lowest price ($1.49/form) in the industry.
E-filing with ExpressEfile is the most budget-friendly option, even compared to paper filing. It eliminates hidden charges like printing, envelopes, and postage. With ExpressEfile, employers can meet their yearly and quarterly IRS filing requirements affordably online.
The new year is all about running your business better and turning your goals into reality. Tax filing should never stand in the way of your success. E-File 1099-NEC now and meet your February 01, 2021 Form 1099-NEC deadline easily.
