A Guide to Small Business Taxes: W-2 Deadline, 1099 Forms, and Online Filing Employment Tax FAQs

Small business taxes can be a daunting task for many entrepreneurs and business owners. Understanding the deadlines for W-2 forms, 1099 forms, and online filing of employment taxes is crucial to staying compliant with the IRS. In this guide, we will cover the essential information related to W-2 deadlines, 1099 forms, and online filing of employment taxes for small businesses.

W-2 Deadline

What is a W-2 form? A W-2 form is a crucial document that reports an employee's annual wages and the amount of taxes withheld from their paycheck. Small businesses are required to provide W-2 forms to their employees by January 31st of each year. Failure to meet this deadline can result in penalties from the IRS.

1099 Forms

What is a 1099 form? A 1099 form is used to report various types of income, such as freelance earnings or payments to independent contractors. Small businesses must issue 1099 forms to vendors or contractors by January 31st if payments exceed $600 in a year. Online filing of 1099 forms is also available through the IRS website.

Online Filing of Employment Taxes

Why is online filing beneficial? Online filing of employment taxes streamlines the process, reduces errors, and ensures timely submission to the IRS. Small businesses can use the IRS EFTPS system or third-party payroll services to file their employment taxes online.

For more detailed information on small business taxes, including nuances by state and example scenarios, continue reading our blog post.