Posted by EQ Tech on Mon, Jan 11, 2010

1099 & W2 Reminders


Information returns that are filed on Form 1099 must be mailed to the IRS on or before February 28. The recipient's copy must be given to the payee on or before January 31. Payments that meet all of the following conditions are reportable as non-employee compensation and must be reported on Form 1099 MISC:

  1. Payments made to someone, who is not your employee.
  2. Payments made for services rendered in the course of your trade or business.
  3. Payments made to someone other than a corporation (e.g. an individual or a partnership).
  4. Payments made to the payee totaling at least $600 during the calendar year.
  5. Payments made to attorneys, regardless of amount, whether incorporated or not.

For California companies, the state of California requires that you file a DE-542 within 20 days of paying an independent contractor $600 or more or entering into a contract that calls for a payment of $600 or more. These forms are available for download from the EDD website (http://www.edd.ca.gov/pdf_pub_ctr/de542.pdf).

The penalties for not filing are substantial and the IRS has been strictly enforcing compliance in this area. In addition, please remember that all employees must complete Form I-9, "Employment Eligibility Verification Form" and Form W-4, "Employee Withholding Allowance Certificate" at the beginning of each year.

Test Print W-2's:
After applying the tax update please print an alignment W-2 form before ordering these documents. Once you order your W-2 forms please print the alignment again to paper. If you need assistance with alignment you can edit the form in Crystal Reports or fax a copy of your printed alignment to EQUATion and we can help you modify the alignment accordingly.

Order your year-end tax forms today!
January 31st is just around the corner. If you haven't ordered year-end tax forms, there is still time. You can order online through Sage Checks & Forms. Alternately you can also call 1-877-580-9935 speak to a Sage tax form representative to place your order. Expedited shipping is available. Mention Priority Code 9X2322501.

Topics: Sage 300 (ACCPAC), Sage HRMS and Payroll Processing

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