What is a good online W-2 and 1099 year end service?

Software. Marketing. Training. Running your business.
#1
LMJ  
Posts:
84
Joined:
10-Jul-2020 2:59am
Location:
San Francisco
Small company wants to send out W-2s and mostly 1099s for 2021. They want it to be online and downloadable for recipients. They will provide the compensation numbers and other details but have asked me to find a vendor and set it up. No payroll services are required monthly. They just want to take care of year end matters? Who are the top vendors?

BTW I am a former Big 4 auditor and new to the tax business so be patient and kind. I have a family to feed and try to serve my clients with the highest level of service but I am still a newbie to all this and learning along the way.
 

#2
Gr8ful  
Posts:
209
Joined:
8-Mar-2016 5:12pm
Location:
North Carolina
First off I use eFilemyforms.com bc they are cheap and easy to use and store data year after year.

Second and most important, welcome! We all had to start out once and there are some of us who have taken the same path you have from big 6 (or 4 now) to tax preparation. One huge hint is to use this forum for your questions but before you post a random question, use the search box for the item you need help with. It will bring up some great discussions regarding many topics you face. Eventually you’ll come across a unique item that is not already on the board and will get some great responses from this forum! Good luck and hang in there!
 

#3
HowardS  
Posts:
2818
Joined:
21-Apr-2014 3:12pm
Location:
Southern Pines, NC
I use tax1099.com. Have used it for the past 3 years.
Just efiled a 1099-R with copy mailed to client for less than $5.
You can also download the form as a pdf to make available to your client or email it directly to them from the site.

Welcome to the forum. Don't be shy about jumping in with both feet.
Retired, no salvage value.
 

#4
Posts:
8151
Joined:
4-Mar-2018 9:03pm
Location:
The Office
I like Track1099 due to the scalability. One can import data via .csv file template and avoid manually keying in data for each 1099.
 

#5
wccpa  
Posts:
18
Joined:
17-Dec-2021 9:42am
Location:
UT
I use tax1099.com for 1099 filings.

I use taxbandits.com for any 941, 940, etc. The name is ridiculous, but great platform. I have so much history in tax1099.com that its difficult to switch to taxbandits.com

Good luck.
 

#6
sjrcpa  
Posts:
6471
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
We are going to use Track1099 this year for the first time.
 

#7
Posts:
6036
Joined:
22-Apr-2014 3:06pm
Location:
WA State
I've used tax1099.com for many years with success.
Recipients may receive their forms via email from the system or via mail directly from the vendor.
~Captcook
 

#8
Posts:
33
Joined:
30-Apr-2021 4:40pm
Location:
The Best Place
I have been using Track1099. It is easy to use.
 

#9
LMJ  
Posts:
84
Joined:
10-Jul-2020 2:59am
Location:
San Francisco
Thanks for some great suggestions. Do you guys think someone like PayChex (have not got an estimate from them but they are a public company) would be more secure as this involves SSNs? Reason is I have never heard of any of the ones cited. How about QuickBooks?
 

#10
sjrcpa  
Posts:
6471
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
Our IT person vetted Track1099 and said it was OK to use.
There is user name and password for login, plus optional MFA.
Take a look. https://www.track1099.com
If client already uses QuickBooks they can do the W-2s and 1099s there but I don't think they can be efiled or delivered to payees electronically.

I don't know if Paychex offers a standalone W-2/1099 service. I would think you already have to be a payroll customer.
 

#11
Posts:
33
Joined:
30-Apr-2021 4:40pm
Location:
The Best Place
Thanks Sjrcpa!
 

#12
Posts:
1174
Joined:
21-Apr-2014 7:09pm
Location:
NC
ManVsTax wrote:I like Track1099 due to the scalability. One can import data via .csv file template and avoid manually keying in data for each 1099.


We do as well…. What do you charge a client, who for example has 5 recipients. He provides you name address social and amount.

Basically it is a key punch job for you. What is your fee????
 

#13
Posts:
8151
Joined:
4-Mar-2018 9:03pm
Location:
The Office
It scales based on the number filed per client. I did not raise my 1099 filing fees this year. 5 1099s would cost $125.

$50 for one 1099

$35 per 1099 for two 1099s ($70 total)

$25 per 1099 for three or more 1099s.
 

#14
Posts:
8151
Joined:
4-Mar-2018 9:03pm
Location:
The Office
The more they have, the more profitable it is for me as Track1099 scales very well as previously mentioned. You can download the csv template and just import that.

I have clients fill out an excel file to deliver the data to me, so it's primarily a copy and paste, then import job. Very easy.
 

#15
Posts:
1174
Joined:
21-Apr-2014 7:09pm
Location:
NC
ManVsTax wrote:It scales based on the number filed per client. I did not raise my 1099 filing fees this year. 5 1099s would cost $125.

$50 for one 1099

$35 per 1099 for two 1099s ($70 total)

$25 per 1099 for three or more 1099s.


OK, so my minimum is $75….. 3 or more is $135 plus $20 each over 5. Our fees appear about the same. Thanks!!!!!
 

#16
LMJ  
Posts:
84
Joined:
10-Jul-2020 2:59am
Location:
San Francisco
Does track1099 do state filings for those states not participating in the Fed auto filing with states initiative? Which states are the exceptions that require their own?
 

#17
Posts:
8151
Joined:
4-Mar-2018 9:03pm
Location:
The Office
 

#18
LMJ  
Posts:
84
Joined:
10-Jul-2020 2:59am
Location:
San Francisco
ManVsTax wrote:https://www.track1099.com/info/state_info


Many thanks!
 

#19
LMJ  
Posts:
84
Joined:
10-Jul-2020 2:59am
Location:
San Francisco
ManVsTax wrote:https://www.track1099.com/info/state_info


Actually Track1099 has a problem. According to text on their site ‘if you have NJ state withholding for these recipients, you will need to file with NJ.” https://www.track1099.com/info/state_info

I am assuming the site is coded to follow what they state.

If one reads the NJ instructions, they state a 1099-NEC should be submitted regardless of whether there is any withholding.
“You must provide New Jersey with copies of 1099 information returns when the amount paid or credited is $1,000 or more in a calendar year or if any New Jersey Income Tax was withheld from the payment if you are a payer of:”

Source: https://www.state.nj.us/treasury/taxati ... t/njwt.pdf
 

#20
LMJ  
Posts:
84
Joined:
10-Jul-2020 2:59am
Location:
San Francisco
Additional faults:
1. Cannot handle multi-state i.e. if recipient moved but did work for client in different states.
2. The site does show a sent date to the IRS but the text in that field is replaced by an IRS acceptance date. Client sent on 1/30 but acceptance was on 2/1. So there is no evidence it was sent on time. That is a f ing major flaw IMO.
3. Proof of mailing for ones that are mailed are not certified mail.
 

Next

Return to Business Operations and Development



Who is online

Users browsing this forum: Miami88 and 19 guests