‘Tis the (Filing) Season – eFile 1099 Online
Every year-end brings with it not just the holiday spirit, but also the underlying dread felt by small business owners – a creepy and back-of-your-neck hair-raising feeling associated with annual business tax reporting and filing. That old saying about “death and taxes” has a lot of validity to it; sometimes they feel like the same thing to a small business owner. And this is the filing season.
The reporting requirements for small businesses seem to be growing at a rapid pace, and business owners are struggling to find the information and tools that ease the adjustment to increasingly burdensome reporting and compliance. The IRS has implemented a number of measures, including stricter 1099 reporting requirements, to increase tax revenues and enforce compliance. With information provided at both ends of the “transaction” it is easier to identify those discrepancies which trigger audits. With this type of business intelligence, the IRS has developed a fairly strong weapon to combat non-compliance, so small business owners need to really pay attention (the IRS is). If the feds are tooling up, then business owners should, too.
Just to add to the seasonal festivities, some of the more popular accounting software packages used by small businesses are making it a little less than simple to get this required filing completed. Sure, current editions of the solutions may address the filing requirements for this year, but those folks who held on to QuickBooks 2010 edition, for example, have just now realized that they can’t file their 1099s without upgrading the software right now. (Not the best of news when you have a lot of other things on your plate, like running a business). If you run a small business and keep most of your information on spreadsheets, that’s OK, too. There are solutions available that can draw the information from QuickBooks or from spreadsheets so that the requirement to re-enter data is eliminated.
Using a cloud-based service to efile 1099 online should also be a consideration for the business. When the service includes form and feature updates, users don’t have to go looking for them or worry that they are using an outdated form. With a cloud-based service model, users benefit from updates without downloads and get stricter security around their data than would likely be present on their own PC. Not every “online” service provides the strong security and useful feature set that is necessary to be really beneficial, so it is important to work with a trusted provider and proven solution.
Consider having these benefits available to the business during this most festive of seasons, and without having to spend gift money on forms and e-filing software:
- Printing forms and mailing forms to recipients as well as e-filing forms directly with the IRS or SSA
- Skip filling out Form 1096 or W-3 because it is automatically calculated and transmitted electronically with the detail forms
- Upload volumes of data with Excel templates or import directly from QuickBooks to save time and reduce input errors
- Store data securely and provide full access to filed forms for multiple years
- Never have to install software or purchase a software upgrade – just pay for the services used
- Maintain payer and recipient records securely for use year after year.
- encrypt data upon submission and it stays encrypted throughout the entire process
- Supports 1099 Corrections (service allows filing of corrected forms regardless of how the original form was filed)
- Accountants, Bookkeepers and Tax Preparers set up multiple payers and file on behalf of many clients from a single account, even getting volume discounts by filing for all clients at once or via batch submission (makes billing easier)
Year-end tax filing, especially dealing with 1099s and W2s, is an arduous task for most small businesses and their professional service providers, yet it is one of those things that simply can’t be put off. Where there is generally a single income tax return there could be literally hundreds of 1099s or W2s to file. 1099 filing in particular has become more of a focus as authorities crack down on contractor versus employer classifications and seek to develop easier identification of audit candidates (a candidacy every business owner wants to avoid).
The point of the discussion is that there are cloud-based tools that are highly useful, feature rich, and very affordable, and business owners and their accountants/bookkeepers would be wise to take a look rather than assuming that the general accounting software will do the trick this year and the next. Remember that this is an annual event, and being able to rely on a consistently useful solution can make the filing season a bit merrier (or at least a little less stressful) for all.
I work with a lot of small businesses, and many of them simply feel more comfortable working with spreadsheets or invoicing software. As a result, these folks don’t have software to help them file various tax forms or calculate transmittal form totals. Many tax preparers also don’t have great software to help with this job, as their tools likely focus on income tax preparation, and related (same with some accounting pros). So, I had to find a solution that would meet their needs without being too complicated or expensive. (I also try to look beyond the surface of the problem; diving deeper and exploring how more value can be provided with the right solution). And when I find a solution that does a great job and has additional value to offer, I try to let folks know about it.
eFile4Biz.com meets the need and exceeds expectations for efile 1099 online products, offering a comprehensive cloud-based service that truly delivers front-to-back processing of tax information returns, including printing, mailing and optional electronic delivery to recipients, and electronic filing with the Internal Revenue Service (IRS) and Social Security Administration (SSA)