W-2 and 1099 Year-End Payroll Reports: Why It’s Essential to Prepare Before Tax Season
With the year drawing to a close, companies and accountants begin preparing for one of the busiest periods of the year— tax season. During January and March, all companies have to make sure that their W–2 and 1099 payroll reports are accurate, complete, and ready to be filed.
If you’re a business owner or CPA. This is the perfect time to review your payroll records and make sure everything is up to date before the rush begins. For support, visit BDV Consultancy today.
What Are W-2 and 1099 Forms?
Understanding the difference between W-2 and 1099 forms is essential for proper payroll compliance.
- Form W-2: This form is issued to employees, showing their annual wages and the amount of taxes withheld.
- Form 1099-NEC/MISC: This is given to independent contractors or freelancers who received $600 or more within the year without any tax deductions.
The two forms have to be filed correctly with the IRS and distributed to payees by January 31 of every year. Inaccurate or late filing results in penalties and enforcement problems. Learn more about payroll compliance at Click here .
Why is the Year-End Payroll Review Important ?
Before you settle into the new financial year, conducting a year-end payroll reconciliation serves to:
- Correct errors in payroll before tax filling.
- Confirm correct employee and contractor information.
- Confirm correct tax withholdings and contributions with official records.
- Don’t wait until the last minute to file taxes.
In other words, closing your payroll books properly in December makes your March tax filing a breeze and penalty-free.
Steps to Prepare W-2 and 1099 Reports Before Year-End
This is how you can prepare your payroll effectively:
- Reconcile Payroll Records: Double-check all payments, bonuses and deductions for accuracy.
- Verify Employee/Contractor Information: Check legal names, Social Security Numbers and addresses,
- Categorize Correctly: Have employees get W-2s and independent contractors get 1099s.
- Check Tax Withholding: Confirm all state, federal and local tax withholdings.
- Generate Reports on Time: Work to complete all reports by the last day of January.
For step by step payroll assistance, reach out to BDV Consultancy.
Common Mistakes to Avoid :
- Misclassifying employees as contractors.
- Missing the filing deadline (January 31)
- Omitting bonuses or other types of earnings.
- Not considering state-specific filing rules.
These errors not only save time but also avoid expensive IRS penalties.
How BDV Consultancy Can Help
We have expertise in payroll management and year-end compliance services for businesses all over the U.S. Visit BDV Consultancy to explore our full range of payroll solutions.
Our team of experts will ensure that your W-2 and 1099 reports are accurate, compliant and filed on time– keeping you stress-free during tax season.
Our Services Includes:
✅Payroll correction and reconciliation.
✅Preparation & filing of W-2 and 1099 forms.
✅Year-end support and tax compliance.
Let us take care of your payroll so you can continue to grow your business– contact us today at https://bdvconsultant.com/ .
Conclusion
Year-end is your best opportunity to close payroll records, reconcile accounts, and prepare W-2 and 1099 reports prior to tax filing.
By getting organized now, you’ll spare yourself from unnecessary headaches and have a seamless beginning to the new financial year.
📅 Don’t wait until March– finish your payroll reports today!
Let BDV Consultancy assist you in closing your books with confidence and compliance.