Filing W2 and 1099 together is one of the most critical steps in your year-end bookkeeping process.
Welcome to our five-part blog series on the Top 5 Year-End Bookkeeping Tips!
Over the next five blogs, we will walk you through exactly what to focus on so you can close out the year smoothly and with confidence. To kick off the series, we are starting with Tip #1: Confirm employee and contractor information to get ready for filing W2 and 1099 together before the January 31 deadline.
Getting this step right early saves you from last-minute scrambling and helps you avoid costly filing errors down the road.
How Filing W2 and 1099 Together Works
Understanding the difference between W2s and 1099s is the first step. W2s are filed for employees, while 1099-NEC forms are filed for independent contractors. Filing W2 and 1099 together before the January 31 deadline keeps your business compliant and your records clean. Learn more about IRS filing deadlines and requirements.
For Employees: Preparing for W2 Filing
Accurate employee records are the foundation of a smooth year-end process. Before the year wraps up, take time to review every record carefully. During the first week of December, verify and confirm that all employee information is current and correct. This includes:
- Full legal name
- Home address
- Social Security Number (SSN)
- Filing status
- Exemptions
If any information needs to be updated, have your employee make those corrections right away, before the last payroll run of the year. Waiting too long can delay your W2s and create unnecessary stress for everyone. For a full breakdown of W2 requirements, visit the IRS official page on Form W-2. Need professional help keeping your books clean all year long? Explore our Small Business bookkeeping services.
For Contractors: Preparing for 1099 Filing
If you paid a contractor more than $600 during the year, you are required to file a 1099-NEC form for that individual. When filing W2 and 1099 together, having your contractor records organized ahead of time makes the whole process much easier. To prepare the 1099-NEC, you must have a completed W9 on file for each contractor. Here is the key information you will need:
- Name
- Social Security Number (SSN) or Taxpayer Identification Number (TIN)
- Address
- Work location
- Total earnings paid during the year
For official IRS guidelines on 1099-NEC requirements, visit the IRS official page on Form 1099-NEC. Are you a government contractor with more complex filing needs? Learn how we support Government Contracting businesses.
What If the W9 Is Incomplete?
If a contractor’s W9 is missing information, you can still file the 1099 manually by writing “Refused” in the EIN box. Keep in mind that the vendor will need to reconcile the amounts reported to the IRS on their end.
Taking care of this step in early December gives you plenty of time to collect missing details, correct any errors, and feel fully prepared for filing W2 and 1099 together before the year-end deadline. A little effort now goes a long way toward a stress-free close. Stay tuned for Tip #2 in next week’s installment of our Year-End Bookkeeping series!
Have questions about your year-end filings? Contact us today and let’s talk strategy.
Have questions about your year-end filings? Contact us today and let’s talk strategy.
