Now is the time to start preparing your 1099 forms. Why? Because the 1099 process for 2021 will be more complicated than ever.
The IRS hasn’t entirely ditched the old Form 1099-MISC, which means you may have two different sets of 1099s to file. (And it’s still not clear yet whether FORM 1099-NEC will be incorporated into the IRS’ combined filing program, which alleviates you from having to file the same form with the states.)
Plus, the IRS has rolled out extensive new e-filing requirements that change the way you count 1099s to determine whether you’re a mandatory e-filer. These requirements also drop the mandatory e-filing threshold substantially … and quickly. Also, employers are facing intense new scrutiny of their 1099s from the IRS—and forms filed in the wrong medium (even correct forms!) can trigger millions of dollars in tax penalties.
The best defense for your payroll department is to learn about all these changes now through our timely new webinar, led by payroll expert Alice Gilman, Esq., editor of Payroll Legal Alert.