Form W-2
A W-2 needs to be filed for any employee that was paid wages during 2010. Prepare each W-2 in accordance with the instructions provided by the IRS. Use employee information such as name, address, employee social security number, and your business information (name, address, employer identification number) when completing each W-2. When transmitting or mailing your W-2s, include Form W-3 to total the amounts reported on all W-2s prepared and filed.
W-2s must be provided to all employees by January 31, 2011. Form W-3 and copies of the W-2s prepared must be filed with the IRS by February 28, 2011 if filing paper copies (be sure to sign before mailing) or by March 31, 2011 if filing electronically (more than 250 forms).
Form 1099
A 1099 can report various types of payments (miscellaneous income, prizes, fees, royalties, etc.) to non-employees but the most common type of payment is to an independent contractor (reported on Form 1099-MISC). A 1099 needs to be filed for payments made, in excess of $600, to an independent contractor during 2010. Prepare each 1099 in accordance with the instructions provided by the IRS. Use independent contractor information such as name, address, taxpayer identification number (i.e. social security number), and your business information (name, address, employer identification number) when completing each 1099. When transmitting or mailing your 1099s, include Form 1096 as a transmittal form to total the amounts reported on all 1099s prepared and filed.
1099s must be provided to all independent contractors by January 31, 2011. Form 1096 and copies of the 1099s prepared must be filed with the IRS by February 28, 2011 if filing paper copies (be sure to sign before mailing) or by March 31, 2011 if filing electronically (more than 250 forms).
Give us a call if you have questions or need assistance in filing your W-2s and 1099s.
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