IRS Due Dates for W2 and 1099
Did you know that you need to send a 1099 to your independent contractors by year end? An independent contractor who earns over $600 in the calendar year is due one. Now, however, this requirement comes with tight deadlines and costly penalties.
Due dates for W2 and 1099
By January 31 each year, you will need to provide W2s and 1099s to employees and independent contractors that have worked for your company in the previous year. The tight deadline exists because you must also submit this same information to the IRS by the same deadline date (January 31). Yes, the due dates for w2 and 1099 have changed in recent years require you to be preparing your paperwork 28 days sooner. It’s easy to forget these law changes as you go through your daily tasks. But, be warned, these W2 and 1099 mistakes can become costly!
Penalties for missing due dates
To ensure you do your part on time, there are penalties for non-compliance. The penalties for information returns that are late, incorrect or have missing information are as follows:
• $50 per return if filed or corrected within 30 days of the filing date.
• $100 per return if filed or corrected more than 30 days from the due date, but before August 1.
• $260 per return if filed or corrected after August 1.
Hire a partner who knows the due dates
The easiest way to avoid dealing with 1099s is to minimize the number of 1099 independent contractors you use during a calendar year. Using fewer contractors will give you fewer 1099s due at year end.
If you’re like most small business owners, you’re incredibly busy with your business. You’re making final deals at year end, thanking strategic partners, and winding down for the holiday season. Thus, it’s easy to forget to take care of these important tax deadlines. Rather, let us deal with the IRS deadlines by using our 1099 and W2 preparation service.
At Paragon, we take the worry out of W2s and 1099s. We will do it right and on time for you. Contact us today.