1099s, W-2s, and What You Need to File in January

The new year doesn’t just bring resolutions — it also brings tax filing deadlines! If you work with independent contractors, employees, or vendors, January is the time to get your tax forms in order.

Here’s a quick breakdown of what you need to know about 1099s, W-2s, and filing requirements:

1099-NEC: For Independent Contractors

If you paid an independent contractor $600 or more during the year for services (not products), you’re required to issue a Form 1099-NEC.

Who gets a 1099-NEC?

• Sole proprietors

• Single-member LLCs

• Partnerships

• Attorneys (even if they’re incorporated)

✅ Due Date:
Copies must be sent to the contractor and filed with the IRS by January 31st.

W-2: For Employees

If you have employees on payroll, they must receive a W-2 form showing their wages, taxes withheld, and other compensation details.

✅ Due Date:
W-2s must also be sent to employees and filed with the Social Security Administration (SSA) by January 31st.

Don’t Forget These Extras:

• W-9 Forms: Collect these early from any contractor before you make payments. This form gives you the info you need to issue 1099s.

• State Filings: Some states require separate filing of 1099s or W-2s. Check your local rules!

• Other 1099 Forms: Depending on your business, you might also need to issue 1099-MISC (for rent, prizes, etc.) or 1099-INT (for interest payments).

Penalties for Missing Deadlines

Missing the January 31st deadline can lead to penalties starting at $60 per form — and those penalties increase the longer the delay.

Wrapping It Up

The easiest way to avoid the January tax panic? Stay organized throughout the year and gather contractor and payroll info early.

Not sure if you’re filing the right forms — or need help making sure they’re accurate and on time? Wrap Up Bookkeeping is here to help you stay compliant and stress-free. Let’s get your filings squared away!