What you need to know: The Year-End Filing Checklist For Small Businesses

E-file Form W-2, 1099-MISC, and 1099-NEC for the 2020 tax year.

Before we even get started with Christmas shopping and planning our New Years’ resolutions, there are some things business owners need to check off the list! We’re all ready to leave 2020 behind us, but employers need to be ready to let the IRS and SSA know how this year went. You’ll need to file W2, 1099-MISC, and 1099-NEC by February 01, 2021.

Form W-2

Employers use Form W-2 to report all the wages paid to their employees and the taxes withheld during the tax year. Employers also need to send each of their employees a copy of their Form W2. Employees use these copies for their income taxes. 

Employers need to file Form W-2 with the SSA and provide their employees with copies by February 01, 2021. When you file with ExpressEfile, you’ll be done in minutes and we’ll handle mailing all your employees their W-2 copies. 

Form 1099-MISC

Form 1099-MISC is for reporting miscellaneous income. This form can be used for:

  • Royalties or broker payments in lieu of dividends exceeding $10.
  • Rent
  • Awards or prizes
  • Medical and healthcare payments
  • Fishing boat proceeds
  • Payments made to attorneys
  • Crop insurance proceeds

There are some changes in Form 1099-MISC. Previously, employers could use box 7 of Form 1099-MISC to report nonemployee compensation. Now, the IRS has removed this section and released a new form for reporting payments to nonemployees. Even though you can no longer use it to report nonemployee compensation, you will probably need to file Form 1099-MISC for 2020 tax year. 

If you are paper filing Form 1099-MISC, the deadline is March 1, 2021. If you e-file, the deadline is March 31, 2021. Not only do you get a little more time if you e-file Form 1099-MISC, but e-filing is faster, safer, and more efficient for your business. Regardless of your filing method, you need to send your recipients copies by January 31, 2021. If you file with ExpressEfile and opt for the postal mailing option, we’ll send out all your recipient copies on time.  

Form 1099-NEC

The IRS just released a new Form 1099-NEC for 2020. Form 1099-NEC allows you to report nonemployee compensation. Previously, employers could use Form 1099-MISC to report payments to nonemployees, but now there’s a new form for that.

If you made a payment of more than $600 to an independent contractor or nonemployee payee, you should file Form 1099-NEC for 2020.

Form 1099-NEC is due February 1, 2021. This means you need to file Form 1099-NEC with the IRS and provide nonemployees with copies by February 1. Click here for instructions on how to file Form 1099-NEC for 2020.

Whenever you’re filing a new form for the first time, it’s nice to have some support. ExpressEfile is here to walk you through, help you file on time, and provide all the resources you need.

E-file Form W-2, 1099-MISC, and 1099-NEC now for the 2020 tax year. We’re here to help your business get everything on the IRS and SSA’s Christmas list this year. 

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