It’s 1099 time! Are you ready?
Whether you’ve got a full-time business or just a side hustle, you face the same deadline for getting 1099 forms out to your independent contractors. By January 31st, you will need to have provided your independent contractors with a copy of their 1099-MISC form and provided a copy of those same forms to the IRS. Depending on your budget, how much spare time you have on your hands and your comfort level with cloud-based providers, there are many options available for meeting that impending deadline:
- If you’re really trying to cut corners and have some time on your hands, you can order the necessary forms for free from the IRS. Under the Forms and Pubs section of IRS.gov, you’ll find a discrete link to “Order Forms & Pubs,” followed by a link for Employer and Information Returns. From this page, you can order both the Form 1099-MISC and the Form 1096 that you need to send a complete package to the IRS. Don’t forget to order a set of Instructions for each! Just be prepared to wait approximately ten business days for the forms to arrive. Then, complete the forms by hand and snail mail them by January 31st.
- If you are already using accounting software to keep track of your business income and expenses, then there’s a good chance that your software provider has an add-on service for e-filing 1099s. Several other vendors offer 1099 efiling for anyone who wants to establish an account, including several of the ones already mentioned:
- Track1099.com integrates with QBO, Xero and Bill.com. You can also enter your information by hand. Pricing starts at $3.99 for the first three forms, then drops to $1.99 per form. The price includes electronic delivery to the independent contractors while forms sent via postal mail are an additional $1.49 per form. This is the service I have used for several years and I have to say I adore it! What I really love about this service, other than the QBO integration, is the fact that it tracks who has received their email and who has downloaded their 1099 form. It is super simple for me to identify which independent contractors I need to call, reminding them to check their email!
- Tax1099.com integrates with Freshbooks, QBO, Xero, Zoho Books and Bill.com. Pricing starts at $2.90 per form for the first ten forms, then drops to $1.90 per form. The price includes e-mailing the forms to the independent contractors.
- Intuit 1099 E-file starts at $14.99 for the first three forms, then drops to $3.99 per form. Forms over 20 are included free! To send forms to the independent contractors, though, you will need to print your forms or save them as a PDF to email to your vendors.
- Lastly, efile4biz.com will allow you to enter your information manually or import from QBO, Xero or QB desktop. Pricing starts at $3.25 for forms delivered electronically to your independent contractors or $3.95 for forms printed & mailed for you.
Running a small business is hard and 1099s can be frustrating. Contact us today if you’d like the help of a professional bookkeeper in your business!
Have any questions about 1099s? Please share them in the comments below!
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.
