Beginning Tax Year 2016, the 1099-MISC filing deadline has been moved up! Employers will be required to file forms W-2 to the Social Security Administration & forms 1099-MISC returns to the Internal Revenue Service returns, no later than January 31, 2017 (New Deadline!). If forms and returns are submitted after the filing deadline a penalty for late filing will be incurred.
New Filing Requirements:
- Filing of Form W-2/W-3 with the Social Security Administration, due January 31, 2017
- Filing of 1099-Misc returns with the IRS, due January 31, 2017 (When reporting non-employee compensation payments in box 7)
- Distribute W2s & 1099-MISC forms to recipients by January 31, 2017
Previous Filing Requirements:
- Filing of Form W-2/W-3 with the Social Security Administration, due February 28th for paper filing & March 31st for electronic filing
- Filing of 1099-Misc returns with the IRS, due February 28th for paper filing & March 31st for electronic filing
- Distribute W2s & 1099-MISC forms to recipients by February 1st
As a result, the major change with the new regulation for the 1099-MISC filing deadline is the decreased amount of time allowed before having to submit 1099s to the IRS. Previously we could produce and distribute the majority of 1099s to recipients by the end of January and still have time to gather missing information on others before filing with the IRS. That luxury has been taken away.
How Do You Prepare?
Make sure to prepare all vendor information as soon as possible and all year-end accounting completed as early as possible in January.
A 1099-MISC form is to be issued if you paid any individual or company, that is not a corporation, over $600 for services in 2016 for services such as:
- Payments for services related to repairs & maintenance, cleaning, bookkeeping & accounting, commissions, legal fees, including those paid to a corporation exchanges of services (barter), etc.
- Rent and lease payments you have made unless paid to a real estate agent or a corporation.
- Outside contractors and non-employee compensation of $600 or more.
- Payments of interest to individuals, including the shareholders of your company if you are a corporation or LLC.
Information you will need from Vendors:
- Individual’s name and Business name
- Social security number or FEIN (Federal Employer Identification Number)
- Current mailing address
- Total amount paid to each vendor, for this tax year
We recommend reviewing your 2016 vendor information and starting the process of gathering any missing W9s or tax ID numbers needed for 1099 preparation. If you are behind on bookkeeping, get us your information right away!
As a reminder the deadline to distribute W-2 and 1099-MISC forms to recipients will still be January 31, 2017.
If you have any questions, contact our office for help or for more information.