1: Set Internal Business Processes
2: Prepare Data for Form Completion
With year-end approaching fast, it's crucial to ensure your year-end processes are well underway. To assist you in your preparations, we have created a comprehensive checklist specifically designed to help you navigate the processing of W-2 and 1099 forms.
This invaluable resource will serve as a tool for your team as they complete the year-end process. So, let's dive into the checklist and get your year-end tasks on track.
Before you start, it’s best to set your internal processes for year-end. By doing so, you set your team up for success and avoid confusion over how things will be handled. Start by considering the following questions for your year-end team.
There are several options available for handling the forms processing, each with its own benefits. You can choose to manually complete the forms, utilize your accounting software for streamlined processing, employ dedicated tax preparation software, or opt for pre-purchased W-2 forms for convenience. Consider the most suitable method for your specific needs and preferences.
Each form involves multiple copies that need to be issued to various recipients, including the IRS, the SSA, and the respective workers. To ensure an efficient distribution process, your business should carefully consider the most suitable method for delivering forms to every party involved.
It's important to note that the IRS and SSA have specific e-filing thresholds that must be met. If your business is submitting 10 or more information returns within a calendar year, e-filing with the IRS is mandatory. Similarly, for the SSA, e-filing is required if you have 10 or more forms to file.
When it comes to your employees, it's crucial to distribute their forms according to their preferences. By default, employees should receive a paper copy. However, if your company utilizes a self-service portal and has provided the option for employees to electronically receive their forms, you may do so with explicit permission from the employee.
Different form types come with specific deadlines that must be adhered to. It is of utmost importance for your team to be well-informed about each deadline so that your business can effectively fulfill your obligations for form distribution.
Note: Form 1099-NEC must be filed to all recipients by January 31. Other 1099s may have individual deadlines that you can confirm on the IRS website.
Preparing the information and data you need to fill out your forms is another crucial part of the forms process. The following will help make sure everything stays on track.
Before preparing to distribute and file forms, ensure you have accurately classified your workers. Proper classification is essential to comply with tax and labor laws. The IRS has a comprehensive guide on how to do this correctly.
When preparing W-2 and 1099 forms, it is essential to have the necessary information from both employees and independent contractors to accurately complete their forms.
To effectively complete forms W-2 and/or 1099, it is crucial to have relevant information about your company as well as your contractors or employees. Ensure that the following information is readily available for your team.
By gathering and organizing this essential payroll information, you streamline the process and help your team meet the necessary reporting requirements accurately and efficiently.
Now that all your data is prepared, it's time to wrap up the process. Your team should complete each form thoroughly, adhere to filing requirements, and ensure comprehensive record-keeping throughout this stage.
Based on your chosen method for completing your W-2 and 1099 forms, it's time to proceed. Utilize the gathered information to thoroughly and accurately fill out each form.
Once the forms are complete, follow these steps:
Simplify your year-end process with Greenshades’ all-in-one solution that covers W-2s, 1099s, and other year-end forms. With automated data population, the tedious task of filling out year-end forms becomes effortless. Just review the data and distribute the forms with ease.
When it comes time to distribute your forms, choose between convenient print and mail services or empower your employees with instant access to year-end forms through our user-friendly self-service portal. We can also handle the filing of your forms to the IRS or SSA, ensuring compliance and saving you valuable time and effort.
Looking for more year-end resources? Explore our comprehensive tools to simplify W-2 and 1099 filing for 2024. Explore Now
This checklist provides a solid foundation for preparing your W-2 and 1099 forms. If you're interested in leveraging Greenshades' expertise in form processing and other employee self-service solutions, reach out to us today.