When it comes to paying employees, Federal and State regulations have made the payroll function a time-consuming nightmare for the small to mid-sized business owner.
Eliminate the risks of calculating and filing your own payroll taxes by having professionals do it for you. Federal, state and local payroll tax laws are frequently changing and becoming more complex. How much time do you want to spend learning all the rules and keeping your information up to date?
Gurian CPA Firm offers 1099 & W2 form consulting and advisory services. Using Gurian PLLC for your payroll needs allows you to be worry-free, knowing that we have the expertise to prepare and process 1099s and W-2s properly and on time so you can avoid penalties.
What Is A 1099 Form?
A 1099 form is a series of Internal Revenue Service tax forms used to file an information return. The form 1099 will help people with their tax returns.
There are different types of the 1099 forms for reporting payments or transactions. Usually, you will receive 1099 tax forms in the mail from different types of income you received for the year. Below, is a list of the different types of 1099 forms available.
- 1099-A Form, Acquisition or Abandonment of Secured Property - A lender will send a form 1099-A on a foreclosed house.
- 1099-B Form, Proceeds From Broker and Barter Exchange Transactions - If you sell stock the brokers and mutual fund companies will file a form 1099-B.
- 1099-C Form, Cancellation of Debt – A 1099-C reports cancelled or discharged debts and it becomes taxable income for the person that owed the money.
- 1099-CAP Form, Changes in Corporate Control and Capital Structure - The form 1099-CAP stockholders will receive if a corporation had a change in control or structure.
- 1099-DIV Form, Dividends and Distributions - Banks and financial institutions send out the form 1099-DIV to report dividends and capital gains.
- 1099-G Form, Certain Government Payments – The Federal, state and local government will file the form 1099-G if they paid you unemployment compensation, tax refunds, taxable grants and agricultural payments.
- 1099-H Form, Health Coverage Tax Credit (HCTC) Advance Payments - The 1099-H form reports if you received payments of health insurance payments for trade adjustment assistance (TAA), Alternative TAA, Pension Benefit Guaranty Corporation (PBGC) pension associates and family members that qualified and Reemployment TAA.
- 1099-INT Form, Interest Income - Banks and savings institutions send out a form 1099-INT to show how much interest was paid to you. Interest can come from savings accounts, savings bonds and interest paid checking accounts.
- 1099-K Form, Merchant Card and Third Party Network Payments – The form 1099-K report payments made from settlement of reportable payment transactions. A payment transaction is a payment card transaction or third-party network transaction. Online retailers accepting credit card payments will receive a 1099-K form if they sell over a certain amount of products.
- 1099-LTC Form, Long-Term Care and Accelerated Death Benefits – The form 1099-LTC reports any payments made on a long-term care insurance policy.
- 1099-MISC Form, Miscellaneous Income – The form 1099-MISC reports payments you received for providing services to a person or company. If you are an independent contractor or if you do freelance work you will receive a form 1099-MISC. The 1099-MISC form also covers payments you received from royalties, prizes and awards, rent, and dividends.
- 1099-OID, Original Issue Discount – Bonds, notes and certificates discounted at purchase time reports the actual value and the discounted price.
- 1099-PATR, Taxable Distributions Received From Cooperatives -Cooperative will file this form for people they paid $10 in patronage dividends and distributions.
- 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530) -If you contributed money to a 529 plan or Coverdell ESA you will receive a form 1099-Q when you make withdrawals to pay for school expenses.
- 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. – The 1099-R reports pensions, annuities and more.
- 1099-SA, Distributions From a HSA, Archer MSA, or Medicare Advantage MSA – The form 1099-SA reports distributions made from a HSA or MSA’s.
What Is A W-2 Form?
The IRS requires employers to report wage and salary of their employees on a W-2 form. It also shows the federal, state and other taxes withheld from your pay. The employee’s personal information and the employer’s contact information will be on the form W2. It is important to double-check the social security number, name and address to make sure everything is correct.
The Federal law requires employers to send the W2 form out by January 31. Employers will also file a copy to the IRS.
Gurian CPA Firm is here to help! Call 469-374-3150 to schedule a FREE initial consultation.