End-of-Year Forms Small Businesses File

January is form season: W-2s to employees, 1099-NECs to contractors, transmittals to the IRS, all with mid-month deadlines. The businesses that scramble missed one thing earlier - reconciling payments before the calendar flipped.

Who gets what

FormGoes toCovers
W-2EmployeesWages, withholding for the year
W-3Social Security AdministrationTransmittal summarizing W-2s
1099-NECNonemployee compensation recipientsContractor payments at threshold
1099-MISCRent, other income typesPayments outside NEC categories

The deadlines that bite

Most of these land in the last week of January, with a handful of variations by form and delivery method. The recurring failure is not the deadline itself - it is discovering in January that a vendor was paid eight hundred dollars above the reporting threshold with no W-9 collected, so no TIN exists to file against.

Collect now, not in January

  1. Collect a signed W-9 from every vendor before first payment, not at year end.
  2. Reconcile contractor totals quarterly, while corrections are cheap.
  3. Confirm employee names and SSNs against records before the final payroll.

Run payroll through a provider and this compresses into reviewing drafts. E-filing obligations apply sooner than you think; see the electronic filing mandate, and note penalties adjust annually - indexed reporting penalties.

Next

Frequently asked

Do I issue a 1099 to a corporation?

Corporations are generally excluded, with attorney fees a notable exception. LLCs taxed as corporations differ from LLCs taxed as partnerships - check the W-9.

What if a contractor refuses to give a W-9?

Backup withholding applies at the prescribed rate, and the payment is still reported. Refusal shifts cost to them, not to the obligation.

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