Preparing Form 1099-MISC: A Step-by-Step Guide for Tax Year 2018

Before you begin preparing your Form 1099-MISC reporting, it is important that you know what information you need to gather. This step-by-step guide identifies 5 key topics that will help you correctly and timely file your Form 1099-MISC.  Continue reading Preparing Form 1099-MISC: A Step-by-Step Guide for Tax Year 2018

Deadlines for Form 1099 Series Tax Year 2018

IRS Deadlines for Form 1099 Series

The deadlines for Form 1099 series vary depending on form and type of filing, electronic or paper.

The deadline to submit 2018 Forms 1099-MISC with NEC (Box 7) reporting to the IRS by paper or electronic filing is January 31, 2019.

The deadline to submit 2018 Forms 1099 to the IRS by paper filing is February 28, 2019.

The deadline to submit 2018 Forms 1099 to the IRS by electronic filing is April 1, 2019. 

Note: You must file electronically if you are submitting over 250 Forms 1099-MISC, -INT, or -DIV for 2018.

Recipient Deadlines

The deadline to distribute 2018 Forms 1099 to recipients is January 31, 2019. 

State Deadlines for From 1099

Requirements and deadlines for state Form 1099 reporting vary by each individual state. Many states that require Form 1099 reporting participate in the Combined Federal and State Filing Program. It is always best to verify this information by contacting the responsible state agency in order to avoid potential penalties.

Extension of Time to File Information

Form 8809 is used to request a 30-day extension of time to file your information returns with the IRS. You should request this extension as soon as you suspect it will be necessary.

The deadline to request an extension of time to file 2018 Form 1099-MISC with NEC reporting by paper or electronic filing is January 31, 2019. 

The deadline to request an extension of time to file 2018 Forms 1099 by paper filing is February 28, 2019.

The deadline to request an extension of time to file 2018 Forms 1099 by electronic filing is April 1, 2019.

If you are requesting an extension for more than one type of form, the request must be filed by the earliest due date of the combined forms.

Initial requests are granted automatically upon filing Form 8809, with the exception of Form 1099-MISC with NEC reporting. If you receive an automatic extension, you may request one additional extension by submitting a second Form 8809 by paper before the end of the first extension period.

Extension requests for Form 1099-MISC with NEC reporting and additional extension requests are not automatically granted and must meet certain criteria.

Gathering Information to Prepare Form W-2

Before you prepare your Forms W-2, you will need the tax information for the employer and employees, as well as the amounts paid and withheld for the employees.

A. Employer Information

You will need to include the following information on each Form W-2 you prepare.

  • Federal Employer Identification Number (EIN)
  • Employer Name
  • Employer Address

B. Employee Information

  • Employee Social Security Number or Taxpayer Identification Number (SSN/TIN)
  • Employee Name
  • Employee Address

C. Reporting Amounts

Box 1: Wages, tips, other compensation. The total taxable wages, tips, and other compensation paid to the employee during the reporting year.

Box 2: Federal income tax withheld. The total federal income tax withheld from the employee’s wages for the year.

Box 3: Social security wages. The total wages paid before payroll deductions that are subject to employee social security tax but do not include social security or allocated tips.

Box 4: Social security tax withheld. The total employee social security tax withheld, including social security tax on tips. The amount should not exceed $7,960.80

Box 5: Medicare wages and tips. The total Medicare wages and tips. Wages and tips subject to social security tax (boxes 3 and 7) are also subject to Medicare tax.

Box 6: Medicare tax withheld. The total employee Medicare tax withheld, including any Additional Medicare Tax, for the reporting year.

Box 7: Social security tips. Enter the tips that the employee reported even if you do not have enough employee funds to collect the social security tax for the tips. Boxes 3 and 7 should not total more than $128,400.

Box 8: Allocated tips. If the employer is a large food or beverage establishment, enter the tips allocated to the employee. This amount is not included in Boxes 1, 3, 5, or 7.

Box 9: Verification code. If you are participating in the W-2 Verification Code pilot, enter the appropriate code on Copies B and C.

Box 10: Dependent care benefits. The total dependent care benefits under a dependent care assistance program paid or incurred by you for the employee.

Box 11: Nonqualified plans. This box is used by the SSA to determine if any part of the amounts reported in Box 1 or Boxes 3 and/or 5 were earned in a prior year.

Box 12: Codes. These IRS codes are designated for certain items being reported, including uncollected social security or Medicare tax on tips, taxable costs of group-term life insurance over $50,000, or elective deferrals.

Box 13: Checkboxes. These boxes are to indicate situations that apply to the employee, including whether they are a statutory employee or if they were an active participant in a retirement plan.

Box 14: Other. If you included 100% of a vehicle’s annual lease value in the employee income, it must also be reported here or on a separate statement. This box may also be used for other information you may want to give to the employee.

Boxes 15-22: State and local income tax information. Enter the state and local income tax information to be reported.