Filing Annual Wage and Reports for 2019 Payroll Taxes
Annual Tax Reports for Employees and Non-employees
One of your duties as an employer is to provide reports to employees and independent contractors showing their income from the tax year. The report for employees is created on Form W-2 and the one for non-employees is on Form 1099-MISC.
These reports are due to employees and independent contractors by the end of January the following year. Thus, wages and payments for the 2019 calendar year (Jan. 1, 2019–Dec. 31, 2019), the reports are due Jan. 31, 2020.
You must also file copies of these reports, along with summary reports, to the Social Security Administration (SSA) for W-2s and to the IRS for 1099-MISC forms, for verification purposes by January 31.
If any of these filing dates falls on a weekend or national holiday, the filings are due the first regular business day thereafter. For example, if Jan. 31 falls on a Saturday, the due date would be Monday, Feb. 2. The dates shown below are for the current (2019) tax year.
W-2 forms must be provided to employees by January 31, 2020, for the calendar year 2019 taxes. You must submit all tax year 2019 W-2 forms, along with a transmittal on Form W-3, to the Social Security Administration (SSA) by this date.
If you file W-3 forms with Social Security by using their online system, you don't have to include the W-3 transmittal form.
You must prepare and file Form 1099-MISC for independent contractors and businesses you pay.
Before you can prepare and send a 1099-MISC to an independent contractor, you'll need to get a W-9 form from that person to verify their taxpayer ID.
Next, send a 1099-MISC to any non-employee to whom you've paid $600 or more during the year. Most non-employees must receive one, but there are some exceptions for who receives a 1099-MISC.
Read this article explaining who must receive Form 1099-MISC if you aren't sure about who should receive the report.
Prepare and submit Form 1096 (Annual Summary and Transmittal of Information Returns) to the IRS, along with copies of 1099-MISC forms you sent to independent contractor and businesses you paid.
You must complete a 1096 form for each different type of 1099 form you prepare if you're submitting these forms by mail.
If you file 1099-MISC and other 1099 forms electronically, you don't have to complete a 1096 form.
Form W-3 is a transmittal form, which summarizes the information on all of the W-2 forms you're submitting to the Social Security Administration. The W-3 form must be sent if you're submitting by mail. The transmittal forms, along with all of your employee W-2 forms, are due to the Social Security Administration by the end of Jan. 31.
You may also be able to file these forms online using the Social Security Administration's Business Services Online portal.
If you're submitting W-2 forms online, you don't need to include a W-3 transmittal form.
If you think you're going to have to file late, you may request a 30-day extension of time to file W-2s. Extensions are not granted automatically, and you will need to provide a detailed explanation of the reason for the extension. Use Form 8809 to file an extension application by Jan. 31.
The IRS says it will only grant the extension in "extraordinary circumstances or catastrophe." The circumstances are limited to those affecting the operation of the business:
- A catastrophic event in a Presidentially Declared Disaster Area
- Death, serious illness, or unavoidable absence of the person responsible for filing the returns
- Fire, casualty, or natural disaster, or
- The business was in its first year of operation.
Filing an application for an extension may help you avoid fines and penalties for late filing of W-2 and 1099-MISC forms.
It's important to be sure that you are paying people correctly for their type of work and to use the correct form to report wages and payments.
Generally, people are considered your employees if you pay them regular wages or salaries, they have an employment contract with you, and if you have control over the work they do. Independent contractors generally do not meet these specifications.
The IRS assumes that a worker is an employee unless it can be proved that the person is an independent contractor.