The tax cannot expire until February 1, 2021. But it is not too early to brush up on what you need to know for filing.
This is especially true if you own a small business.
What’s new for the 2020 tax year? For one thing, replace Form 1099-NEC for Form 1099-MISC for non-employee compensation reporting. Indeed, it is a new version of the old form that has been out of use since the 80s.
Of course, the standard 1099-MISC remains, but will serve a somewhat different purpose.
But finding out what information is on which form during this tax season will certainly be a major challenge. Luckily, efile4Biz has resources to help you learn more and start filing online.
So brush these forms. Both come with their own requirements.
remember: If you pay contractors and other self-employed service providers – whether individuals, partnerships, estates or corporations – you know about 1099 forms and how to use them.
You must also mark your calendar!
There is a deadline to provide these forms to your contractors and submit them to the IRS.
Before that, you will need to make sure that you have the correct information for each of your service providers. So if you still need to gather that information, you don’t have time to waste.
Figure out what to collect. During the year, you may have paid to independent contractors, watchman companies, third-party accountants and other service providers who are not on your payroll. If they are not your employees, yYou need to get important information from them – including W-9 and tax identification number.
Consider starting early. Do not wait until the last moment to begin filing. Many forms can be recorded early – as early as the fourth quarter.
Start filing online. From buying a new pair of shoes to handling banking transactions, more and more of us are handling online money matters these days. Why should reporting to the IRS be any different? Filing your business taxes online is easy.
Important: If you create taxes for many small business customers, pay attention. You probably have less time to speed up with some changes to 1099 variants.
Remember, you will need to make sure that each of your customers has collected the appropriate forms from each of their service providers. Before you can start sending the 1099 form and need to fill your customer’s tax return.
Changes to existing forms will mean recording payments made to contractors of their customers. And depending on how many service providers, this can be challenging.
Fortunately, you do not have to struggle through the process. An online resource provides all the support you need for filing 1099s and W-2s, whether for your own small business or for a whole host of small business clients.
efile4Biz offers a wide range of solutions and online support. Read the detailed explanation of everything you need to know to complete your 1099 in the link below. Start brushing up on changes to 1099 forms and start filing your business tax return from today: