With the extra time needed to prepare for the Christmas season, decorate and give gifts, it is not surprising that you easily forget to plan in advance for your 1099 and W-2 reporting before the deadline in February 2. That is why a lot of people and corporate entities adopt the option to go paperless to allow themselves more time to use for focusing on things which matter. The following are the major benefits of filing the forms electronically.
State and Federal Filing is Easy
There is no need for you to upload or download data to various government sites or stay abreast of different state filing requirements. Electronic filing lets you send your 1099 and W-2 data directly to the Social Security Administration (SSA) or IRS in any format that state requires. The filing is guaranteed to be secure and you are given information on the status of your submission.
With e-filing, you do not have to purchase tax forms, stuff and print envelopes and male them in January. You can remotely print and mail all completed filings directly to recipients. Also, recipients can retrieve 1099 and W-2 forms securely over the web which eliminates wait time. For everybody, overall turnaround time tends to be faster.
Submitting W-2 and 1099 copies must be done on or before the February 2 deadline. Filing to file the forms by the due date will get you paying penalties which range from $30 to $100 for each form depending upon the time the forms are filed. When filing W-2 with the Social Security Administration electronically, the deadline is set on March 31 while the deadline for paper filing is on March 2.
Electronic filing offers peace of mind knowing you will not miss the deadline by offering filing status on each service, giving confirmation whether it has been filed or printed and ensuring require postmark by the deadline date.
As you file W-2 forms, you need to adhere to a list of do’s and don’ts in order to make an accurate filing. When filing on paper, every form needs to be filed alphabetically by the last names of the employee or numerically by the SSN and things such as tape, staples, tears and folds can interfere with machine reading. Electronic filing has the benefit of complying automatically and determining errors before submission.
The electronic filing is actually encouraged by the SSA as chosen method to file W-2s and 1099s. The w2 software at etc.com is readily available for access online.