Updated: Jun 18
Welcome to our first blog series on the Top 5 Year-End Bookkeeping tips. This blog series will run for five weeks to give you tips on what to focus on to have a successful year-end close. To kick off the series we are excited to share Tip #1: Confirm employee and contractor information
Confirm all employee information is updated in preparation for W2 and/or 1099 filing.
The first week of December, verify and confirm all employees information such as name, address, social security number (SSN), filing status, exemptions, etc. are correct.
If changes are needed, have your employee updated the changes immediately prior to the last payroll of the year.
For contractors, you will need to file the 1099-NEC form if you paid more than $600 within the year.
To prepare the 1099-NEC, you must have a completed W9 on file for each contractor.
The vital information needed:
SSN or TIN
If the W9 is missing information, you can still file the 1099 manually by notating “Refused” in the EIN box. The vendor will have to reconcile the amounts reported to the IRS.