In addition, if you paid an independent contractor for their services, you will need to file a Form-NEC for reporting non-employee compensation by January 31st. The Form 1099-NEC replaces the Form 1099-MISC you used in the past. Be sure to send this form, along with Form 1096, to the IRS.
The January 31st deadline helps the IRS prevent fraud because they can match taxpayers’ returns with their records more quickly.
Here are some tips to help you file these reports on time and avoid penalties:
- Consider choosing the accuracy, speed, and convenience of electronic filing. Note that in some cases, you are required by law to file these forms electronically. In addition, make sure your employees’ or independent contractors’ information is correct. This includes names, addresses, and (most importantly) taxpayer identification numbers. For most people, this means their Social Security numbers. Also, double check your information with SSA and with any agency you rely on to complete W-2s.
- If you need paper forms, order them early. If a payroll service files your forms, make sure they have the information they need to file your forms on time.
- Remember, extensions for filing W-2s are not automatic. They are only allowed for very specific hardships, such as disaster-related damage to your records. You can get details about extensions on Form 8809 and information on other forms at IRS.gov/forms.