Deadlines for IRS Form 1099-MISC and the W-2

On the tax front, January brings the beginning of the year-end close out of the 2019 calendar tax year. We wind up the accounting for 2019 and businesses are required to issue certain tax forms to individuals or companies to whom certain payments have been made during 2019.  Employees are to receive forms W-2 and others may need to have forms 1099-MISC issued to them.

Employers need to issue Forms W-2 to all employees receiving wages during the tax year. In addition, the fourth quarter and annual payroll tax returns are due. These are generally prepared by the person or company who processes your payroll during the year. The filing deadline is January 31.

For certain payments made to other individuals or companies in connection with a trade or business, forms 1099-MISC may be required. These payments include:

Payments of at least $600, paid to individuals or entities not taxed as corporations, for:

  • Rents
  • Services performed by non-employees (including parts and materials)
  • Prizes and awards
  • Other income
  • Crop insurance proceeds
  • Any fishing boat proceeds                       

Payments of at least $600, paid to individuals or any entities including those taxed as corporations, for:

  • Medical and healthcare payments (NOT health insurance premiums)
  • Cash payments for fish or other aquatic life
  • Payments to an attorney

Direct sales of at least $5,000 of consumer products for resale

Payments of at least $10 in royalties

When do these forms need to be issued? Forms reporting non-employee compensation are due on or before January 31. Forms reporting other types of income are due on or before February 28.

Let us know if you would like help determining which payments require 1099 reporting. BUSBooks can assist with the preparation and processing as well.

Let us at BUSBooks help get your accounting in order! Together we can make YOUR accounting MORE meaningful. 

Written by Tracy Fickett, CPA and Peter Shelbo, Veteran Bus Operator

BUSBooks is a unique CPA accounting firm dedicated to the ground transportation industry.