* An Average Savings as reported by our clients
Easily integrate data from your payroll or ERP system, or upload information using an Excel spreadsheet, to promptly fill out W2, 1099, and other year-end forms. With our straightforward checklist, you can review forms for accuracy, get alerts for potential issues, validate SSNs, and choose to file either digitally or via print and mail submission.
With Greenshades, streamline your workflow for a variety of W2 forms, including W2G. Eliminate manual calculations and data entry errors, ensuring that your W2 forms are filed efficiently and returned to employees promptly.
Take the complexity out of 1099 filings for contract workers with our efficient process. Effortlessly gather information from compatible payroll systems or Excel spreadsheets to handle various 1099 forms, including 1099 NEC, 1099 MISC, and more.
Form distribution becomes a breeze with Greenshades. Within our Federal W2 workflow, you can either download the efile and handle the submission or allow Greenshades to manage the submission to the correct agency. For those who favor traditional print and mail methods, we can oversee the printing and mailing of tax forms to both employees and vendors with just a few clicks
Provide your employees with the capability to access their tax forms through the employee self-service portal. Tax preparer collaboration options are available, allowing employees to securely import their 1040 information into platforms like Intuit TurboTax. This simplifies year-end submissions for your team.
As an employer, you must file year end forms:
Employers are also responsible for filing tax returns:
Year end forms are generally due January 31st.
W2 forms are issued to salaried employees, reflecting their annual wages and tax withholdings. In contrast, 1099 forms are provided to independent contractors, showing their earnings without tax deductions. Incorrectly classifying an individual as an employee or contractor can result in severe penalties and legal repercussions. Proper classification is paramount to prevent such complications.
There are a wide variety of 1099 forms that all serve unique purposes. Below is a list of the 1099 forms Greenshades accommodates, along with their respective applications:
Whether one should opt for W-2 employment or work as a 1099 contractor is influenced by individual needs and circumstances.
As a W-2 employee, benefits such as health insurance, paid time off, and potentially retirement plans are commonly provided. Employers automatically withhold taxes, simplifying the tax-filing process. While W-2 employment might offer more job stability, there might be limitations in terms of work flexibility, potential earnings, and tax deductions.
In contrast, a 1099 contractor often enjoys greater flexibility in work schedules and potential earnings. They can also claim specific business-related expenses as deductions. However, they're tasked with managing their tax obligations independently.
Factors such as job security, benefits, autonomy, and financial obligations should be weighed when determining the ideal employment arrangement.
Tax obligations differ for W-2 employees and 1099 contractors, especially when considering employment taxes. W-2 employees have 15.3% of their earnings allocated for Social Security and Medicare taxes. However, employers cover half of this amount (7.65%) and deduct the remaining half directly from their paychecks. In contrast, 1099 contractors are responsible for the full 15.3% on their own, funding it from their earnings.