Monday, February 1, 2021 Is the Filing Deadline for Employers to:
1. File Form W-2 and other wage statements
2. Provide completed Form W-2s to their employees
3. Provide completed 1099s to contractors
Who Should You Provide a W-2 to?
Every employer engaged in a trade or business who pays remuneration, including noncash payments of $600 or more for the year (all amounts if any income, social security, or Medicare tax was withheld) for services performed by an employee must file a Form W-2 for each employee (even if the employee is related to the employer) from whom:
- Income, Social Security, or Medicare tax was withheld
- Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee's Withholding Allowance Certificate.
Who Should You Provide a 1099 to?
File Form 1099-MISC for each person to whom you have paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in:
- Prizes and awards
- Income payments
- Medical and health care payments
- Crop insurance proceeds
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
- Cash paid from a notional principal contract to an individual, partnership, or estate
- Payments to an attorney
- Any fishing boat proceeds
In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
1099 Note: Beginning with Tax Year 2020, you must use Form 1099-NEC, Nonemployee Compensation, to report payments of nonemployee compensation (NEC) previously reported inbox 7 on Form 1099-MISC. Do not order Form 1099-MISC for reporting NEC. The separate instructions for filers/issuers for Form1099-NEC are available in the 2020 Instructions for Forms 1099-MISC and1099-NEC.
Verify and Update Your Employees’ Information
Before you complete your W-2s and 1099s, verify and update employee and contractor information, such as:
- Social Security numbers
- Individual Taxpayer Identification Numbers
- And updated W-9 from contractors
Confirm that your account information is current and active with the Social Security Administration as soon as possible.