Tax season is around the corner, so it’s time to start gathering information and preparing for the deadlines.
What is the 2021 deadline for filing 1099s?
The 2021 deadline for Forms 1099-MISC and 1099-NEC is Monday, February 1 since the typical deadline date, January 31, lands on a Sunday.
The deadline for Form W-2 is also February 1, 2021.
According to CPA Practice Advisor:
A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. That is also the date the Forms W-2 are due to workers.
This includes Form 1099-NEC and 1099-MISC as it relates to independent contractors and related nonemployees.
However, now that nonemployee compensation has been separated from Form 1099-MISC onto Form 1099-NEC, the deadline to e-file Form 1099-MISC is March 31, 2021.
What does this mean for your business?
Business owners need to file 1099s to the IRS and send pay statements to freelancers, contractors, and other miscellaneous earners by the deadline. This means you will want to start gathering the following information for the independent contractors who have worked for you in 2020:
- Full name
- Social Security Number or Individual Taxpayer Identification Number
Learn more about the latest instructions for Forms 1099-MISC and 2099-NEC from the IRS here.
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Be sure to utilize our TIN Checking service, which helps you know if you are reporting accurate tax IDs and names. Learn more about our TIN Checking service here.