Many e-filing services provide TIN checking as an additional service to e-filing and paper filing. But what is the service? And is it necessary? Many of our customers ask these questions when they use eFile360 to file their 1099s and related forms for the first time. Most customers want to be informed before they complete their order while others are suspicious of add-ons in general. So we wanted to clear the air: TIN checking isn’t necessary to file your 1099s, but this service can save you a lot of headaches. What is a TIN? A TIN is a Taxpayer Identification Number. It is also called a “95-number” or “tax-ID” number. A TIN is an umbrella term that means the following: Social Security Number (SSN) Employer Identification Number (EIN) Individual Taxpayer Identification Number (ITIN) Adoption Taxpayer Identification Number (ATIN) Preparer Tax Identification Number (PTIN) Business owners typically use their EIN to file business taxes and their SSN to file their personal taxes, but this may differ based on your unique situation. When it comes to filing 1099s, 1098s, ACA forms, and W-2s, business owners need to know the TIN for each employee, freelancer, and independent contractor that works for them. Tip: While you may only need to file a form if you pay that employee or contractor $600 within a calendar year, it’s always best to document their TIN before they start working for you. This way, you know that you have their TIN on file way before tax season. What is the TIN Error Reconciliation Process? When it comes to tax reporting, it’s vital that all of the information you file is accurate – including the TINs of your employees and contractors. This is where the TIN error reconciliation process comes into play. This process is three-fold: Check your records Use a TIN checking service, which efile360 offers File Form 1095-C when you find TIN errors The first portion of this process involves you double-checking …
Hire a lot of contractors? 5 reasons to use an e-file provider like eFile360
If you hire a lot of contracted employees or seasonal workers for your business, the simplest way for you to file Information Return forms is to use an e-file provider like eFile360. Between 1099s, 1098s, W-2s, and ACA forms, your business has a lot of Information Return forms to file with the IRS. Then you need to send copies to your contractors, vendors, former employees, employees, and more. It can be dizzying to create and send all these forms, but it doesn’t have to be. Choosing to e-file with an e-file provider like eFile360 versus using a membership-based software or manually filling out page after page is the simpler, safer, time-saving option. Here are 5 reasons to use an e-file provider like eFile360: Save time with bulk upload & TIN Checking Save money on large orders No need to purchase software or a monthly membership Data backup Reduce paper waste Save time with bulk upload & TIN Checking The option to use our bulk upload service to create hundreds or thousands of forms at once isn’t available if you choose to manually fill out Information Return forms. This service allows you to ensure your data entry is accurate while also being much faster than manual data entry. TIN Checking is also not available if you choose to manually fill out your forms or with some e-file software options. Only online e-file providers like eFile360 offer TIN Checking to save you from costly mistakes. Save money on large orders Most accountants that help you file your Information Returns do not offer discount pricing of any kind. E-file providers like eFile360 do offer volume pricing. This means each form you e-file could cost as little as $1.25 for E-File + Print & Mail or $0.75 for E-File Only when more than 1,000 forms are ordered. For the same order, each TIN Check costs $0.25. No need to purchase software or a monthly membership This is the main benefit of working with an e-file provider like eFile360. Many e-file …