Deadlines to file documents are something we can’t avoid. However, the stress and headaches that are associated with these deadlines can certainly be mitigated! As the 1099, W-2, and payroll deadlines have just passed, now is the time to work on a good habit that will make next year’s filing crunch less stressful.
1099’s are a two-way street. As a company, each year you are required to file 1099’s and issue them to the independent contractors. The contractors need these forms to pick up the proper amount of income for their tax returns. The general rule is, when you hire an independent contractor to provide services for your business, prior to the first payment for their services rendered, you should have received a completed W-9 from them.
Doing this in a timely manner throughout the year will eliminate last minute scrambling to get their W-9’s and file their 1099’s on time. Not only does it save time and stress on your part, it will help to ensure that the proper 1099’s get filed so you can avoid the late penalties!
Need more information or just want a conversation about how to adopt these good habits? Reach out to any one of our Accounting Services team members.