top of page

1099s and W2s- what you need to know

The season for issuing 1099-MISC, 1099-NEC, and W2 forms to your employees and freelance workers has begun! Here are a few questions that are asked about these forms:

What is the deadline to send out forms

  1. For W2 they need to be sent out no later than January 31st

  2. For 1099-MISC or 1099-NEC they must be sent out no later than March 1st

What are the consequences if you do not send your 1099’s out by the deadline?

There are fines the business will have to pay for late issuing. For each form, the business can be fined anywhere for $50- $280! This is for each individual form, so make sure you send on time, even using snail mail. All documents must be stamped within the given time.

How can employees be penalized if you don’t send out your 1099’s by the deadline?

If they don’t record income on taxes, they will be understating the income and can be fined for the missing income plus 20%. For example, if you were supposed to report $5000, you would pay $6000 (5000+20%)

What can an employee do if the company that they were a 1099 employee for doesn’t send out the 1099 by the deadline?

There are many reasons why you didn’t get a 1099-MISC or 1099-NEC form

  1. You were paid $600 or less, businesses don’t have to send

  2. You were paid through a credit card or PayPal, those companies would send a 1099-K

  3. The forms were lost in the mail

  4. They simply forgot, they are human too

If any of these happen, you still must report your income. You will be fined for under-reported income.

bottom of page