Why Outsource 1099 Reporting?

What is form 1099?

Before knowing why to outsource the 1099 report, you must understand what the form 1099 includes. The IRS Form 1099 is a documentation form that all sizes of businesses use to report their taxable payments that have been made to their vendors and independent contractors. This is used to report certain non-employee compensation and payments that are made for the professional services provided by them, their rental property income, royalties, income from interest and dividends, award and miscellaneous prices that are paid to other businesses or individuals along with the other aspects of their output in sales proceedings. These non-employee compensation are made to freelancers and independent contractors who receive this form for work they’ve performed during the year and use it to report their income to the IRS by submitting the form to the payees as well.

The IRS refers to this document as “information returned” It is a requirement that a filing occurs with earnings of at least $600.00 per tax year. There are many types of 1099 form that determines the revenue by reporting different types of payments.

Types of 1099

1099-MISC: Payments made to each individual during the year for miscellaneous services.

1099-INT: Used by financial institutions to report the interest paid to the account holders.

1099-DIV: Used to report dividend payments and investment distributions.

1099-LTC: Used by insurance companies and government agencies to report long-term plans and accelerated death benefits based on life insurance policies.

1099-SA: Health insurance administrators are used to report distributions from health savings accounts, medical savings accounts, or Medicare Advantage medical savings accounts.

Why outsource 1099 reporting?

The deadline for the reporting of form 1099 was usually in March but with many of the looming deadlines that many businesses had to encounter in the beginning months of January complied with all the ever-changing tax laws and outsourcing 1099 form preparation by mailing and e-filing them. This worked out well for most of these businesses. The PATH Act (Protecting Americans from Tax Hike Act) that was enacted on December 18, 2015, had changed the deadline for filing the 1099 Misc. to January 31st instead of March. The process of outsourcing 1099 has reduced the potential of error thereby significantly decreasing the potential for significant penalties. This is due to the ease in processing of amending when you choose to outsource the 1099 form as now the mail and file dates are done simultaneously.

Outsourcing the 1099 form and all of the similar tasks will save you a lot of time and also eliminate any potential risks for further penalties on both the taxpayer and businesses that file the form. Outsourcing 1099 reporting saves your company’s valuable time and money by assuring that the task is handled error-free by a group of certified and experienced professionals that provide their expertise, support and give you their professional advice for complex matters and issues. For the 1099-NEC form that is required to report the Nonemployee Compensation Income (formerly Box 7 of Form 1099-MISC) which every business is mandated to file, starting in the 2020 tax year, the IRS requires these businesses to electronically file these forms by 31st January. This regulation from 2020 mandates outsourcing as a must for most of these companies. However, to help you out with the outsourcing of 1099, our outsource 1099 processing  solution allows you to easily prepare your 1099 form and file these seamless amendments of forms error-free.

How can we help you outsource the 1099 form?

Meru Accounting has their CPA experts and professionals that provide comprehensive module solutions for all the outsourcing 1099 reporting services which includes1099-MISC, 1099-INT, 1099-DIV, 1099-R, 1099-NEC, etc. During the busy year-end reporting season, we can help you take the burden off your shoulders by taking more workload off your to-do list. We will assist you every step of the way with all of your 1099 filing requirements.

Meru Accounting has been one of the most top leading outsourcing accounting and bookkeeping companies that provides 1099 e-file services to businesses of all industries and sizes.  Our complete outsourcing solution for all 1099 forms, including 1099-MISC, 1099-R, 1099-DIV, 1099-INT along with the 1099-NEC that is filed for tax years beginning in 2020, which includes highly affordable rates providing you with exceptional client service. All of our professionals are intricately trained and certified. You will also have access to our customer service with the fastest turnabout of 24 hours readily available by phone and email to provide support and answer your questions. Our services are tailored to ensure that your unique needs are fulfilled and catered to. We streamline and deliberate over.

the entire outsourcing 1099 process for you so that you no longer have to deal with software updates, filing hassles, answering difficult questions, printing, mailing, and amending forms. At Meru Accounting we will take care of all your 1099 filing needs so that you can easily choose to focus on your key business aspects by letting us do all the tedious paperwork.

Outsource 1099 form service:

We, at Meru Accounting, ensure a thorough review of your data by our certified professionals to identify and eliminate potential errors, fill in the missing information and ensure that data is formatted correctly. We make sure that our services are tailored to match your needs according to the IRS regulations before the tax reporting season begins to minimize the errors and penalties.

Since the form is quite bulky in volume, it is common for the form to have plenty of reporting errors due to the nature of the data that is being reported. Vendors contact companies to report any discrepancy that has been identified in the final reported amount on the form. We also identify the errors in the match results of your Tax Identification Number whereby the Taxpayer’s Name and Tax Identification Number or your Social Security Number or Employer Identification Number do not match the records that are entered into the IRS system. These errors are common and can only be minimized by completing TIN-Matching services in advance with the right expertise, which is why our services will correct all the reporting errors committed during the filing preparation.

Our system has immense integrations with many add-on allowing the clients to change any fields in a form filing by logging into our secure portal. We track all changes made, provide an audit trail, and ensure that the corrections are automatically filed with the IRS so that you will not have to bother yourself about amending forms that were previously filed.

With the recent updates in the regulations of IRS in 2020 pro-tax year, the biggest change for 1099 software is the introduction of Form 1099-NEC Nonemployee Compensation with the adequate requirements of its filing, it is mandated by the IRS to e-file it or outsource 1099 processing form. Along with the recent developments that have been added to different types of the 1099 form, outsourcing will save you valuable time and money which can be utilized for other pressing tasks at hand thereby enhancing your overall processing.