A small company with just five employees could be satisfied with a surprisingly informal tax-filing routine. Someone accesses the accounting files, locates the W-9s and adds each contractor’s name and address into the system for filing. They then review the forms, and then submit the forms.

The business will grow.

Five contractors become 20. Twenty contractors become fifty. Perhaps the company employs freelancers, consultants or other non-employees during the course of. It’s not just about completing the tax forms correctly. The problem is navigating the same process without turning the filing season into a manual entry marathon.

The method you employ to electronically submit Form 1099-NEC becomes crucial.

Volume Changes the Nature of the Job

If the volume is minimal it’s possible to add records of contractors manually. When the volume increases it is commonplace to type names and postal addresses, tax identification number and compensation information results in unneeded administrative work.

TaxFormHero is able to accept 1099-NEC forms both individually or in bulk using CSV or Excel. Companies that have organized contractor data is able to move larger sets of records into the workflow for filing instead of building each return completely from scratch.

Companies or individuals that have distinct entities can benefit from the fact that a single account can contain multiple payers.

Don’t Allow Speed Eliminate Review

Bulk processing doesn’t necessarily mean submitting everything that was imported.

TaxFormHero includes validation to identify issues like incorrect addresses, missing TINs or mathematical mistakes. The optional TIN matching is a different method of comparing taxpayer names and identification numbers prior to transmitting.

Businesses that e-file 1099-NEC forms should still review the actual reporting requirements that apply to each recipient. TaxFormHero provides guidance on a general threshold of $2,000 for reporting payments made by non-employees that are eligible.

In certain situations, other fields might be applicable. For instance, federal or state tax withholdings as well as specific direct sales. The contractor’s records do not have to be filled with the same data.

It is not necessary to be a permanent software user in the event of scaling.

The rate of growth isn’t always predictable. A company might have a big contractor roster this year and a smaller one next year.

TaxFormHero makes use of pay-per-form instead of requiring a recurring subscription. According to the company, electronic filing starts at $1.99 per form. There is no signup charge.

This makes the 1099-NEC filing service for companies able to adapt to various filing volumes without needing an organization to maintain a year-round subscription simply to prepare for the upcoming filing season.

Delivery to recipients becomes an Workflow decision

With higher volumes, IRS filing preparation process is only an aspect of administrative tasks. Pay attention to the recipient copies.

TaxFormHero allows filers to preview recipient copies, and also offers printing and delivery services. Companies can choose to manage distribution internally or add a delivery service to the filing process.

Dashboard lets you check the status of IRS acceptance after transmission. TaxFormHero declares that updates to status are posted within 24 hours. Filed information and PDFs can be accessed for four years.

The building blocks for the next year’s business not for last year’s

A filing process shouldn’t become significantly more difficult simply because the company successfully added contractors.

The main goal is repeatability organizing contractor data to import it in a timely manner when volume warrants it confirm the information examine the forms, forward them securely, and track what happens following.

The system that is built around five contractors will eventually come to an end. Early recognition of this point could make filing time much easier.