Payroll Services

Managing payroll in a small business is full of potential pitfalls. When your company pays an employee, the money you withhold on your employee’s behalf is no longer yours. The IRS can be unfriendly when tax obligations go under-reported or underpaid. Additionally, Federal and state unemployment obligations yield significant penalties for non-compliance.

At Kristen H Lane, CPA, we make every effort to ensure our clients' file and pay their Federal and state payroll taxes and obligations promptly. This includes payroll and compliance filings as well as information returns, if applicable.

Information Returns (Federal Form 1099s)

Along with handling payroll and compliance filings and convenient payroll services, we also prepare and process 1099 forms, of which there are several different types. We use a software program that interfaces with the IRS system that provides a fast and efficient approach to filing 1099s. 

1099 Filing Information

If your trade or business made payments during the calendar year, you are likely required to file an information return with the IRS (Federal Forms 1099). Information returns are due either January 31st or February 28th after the calendar year (depending on the type of form). We diligently inform clients of the reporting requirements and timely processing to avoid missed deadlines at all costs.

On each tax return that reports trade or business income and expense, there is a checkbox to confirm “Yes” or “No” to whether you made payments that necessitate Form 1099s to be filed. If the answer is “Yes,” you are required to confirm “Yes” or “No” to whether you filed them. Prior to issuing payment to the respective vendor, you should also obtain a signed W-9 form to comply with the IRS filing requirements.

1099s Filing Information

Following are the types of 1099 forms which we prepare and process for our clients:

Form 1099-NEC

This form is used to report payments in excess of $600 made to an independent contractor or other business, including partnerships and limited liability companies, but excluding corporations. Additionally, it is used to report payments in excess of $600 made to an attorney (individual, partnership, limited liability company, OR corporation).

Form 1099-MISC

This form is used to report payments in excess of $600 made for rent to persons, including partnerships and limited liability companies, but excluding corporations. Additionally, it is used to report payments in excess of $10 made for interest on a business debt to persons, including partnerships and limited liability companies, but excluding corporations.

Form 1099-DIV

This form is used to report all dividends and distributions.

Form 1099-INT

This form is used to report all interest income.

Form 1099-R

This form is used to report distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc.

Form 1098

This form is used to report mortgage interest statements.

Kristen H. Lane, CPA

Contact our team of experts to inquire further about our payroll tax and 1099 processing services.