Congratulations, you have made it this far with our nightmarish 1099 tales!  In our final installment, we will look at some important tax legislation and what it could mean for your business.

This past January saw changes to filing deadlines for W-2s and some 1099s.  While most of the change-over ran smoothly, it is always a good idea to review these changes and why they are important.

PATH Act of 2015

The Protecting Americans from Tax Hikes (PATH) Act of 2015 was signed into law December 2015 and affects the filing deadline for W-2s and certain types of Form 1099.  In the past, companies had two filing deadlines to keep in mind for W-2s.  January 31st for providing the employees their copies and February 28th to file copies to the Social Security Administration.  

Starting in 2017 however, there will now be one deadline for both on January 31st.  This new deadline also pertains to the 1099-Misc. that has an amount entered in Box 7 Non-employee Compensation.  If you don’t have any 1099s with Box 7 filled in, then you can keep the past filing dates of January 31st and February 28th.  If you have both types of 1099s however you will only have the earlier filing date.

This too shall pass!

With this accounting season quickly approaching on the heels of another busy, all be it, more enjoyable holiday season, know we are here to help. 

Start getting organized now. Review account information to make sure you have complete information.  Inventory your W-9 files to make sure you have one on file for all vendors.  Pull reports to understand what services will need to be 1099’d.

Navigating the 1099 process can be difficult, especially while trying to meet year end goals.  If our team can assist you in anyway, we would be happy to.