Tax Season is Here: What Small Businesses Need to Know About W-2s and 1099s

Tax Season is Here: What Small Businesses Need to Know About W-2s and 1099s

As businesses get ready to face their February 1, 2021 deadlines, it is time to review IRS requirements and make a plan. As a small business, the best way to stay tax compliant is to be informed and choose the best filing method.

 

Form W-2 Explained

Everyone who has spent some time in the workforce knows a thing or two about Form W-2. From the employer’s side, Form W-2 is a report on employee wages and the taxes withheld from employee paychecks. 

Employers file these forms with the Social Security Administration (SSA) and provide their employees with a copy. Employees use their copy for income taxes. Even if your business only has one employee on the payroll, you will need to file Form W-2 for the 2020 tax year. 

 

When are W-2’s due? 

The Form W-2 deadline is usually January 31. When that date falls on a…

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