Saturday, October 13, 2007

W-2, 1099 - Getting Ready for Tax Time

Hi, I'm Jayne Miller, your Peachtree Pro.

Welcome to another in our series of “PeachPods” – informational podcasts about Peachtree and related bookkeeping topics.

You can listen to our archived podcasts at If you are a Peachtree user, be sure to check out our new PeachPod series at

Last year I published a podcast about W-2's and 1099's that I think is worth repeating. It's getting to be that time of year and we need to be thinking about some of the things we have to do to get ready. As a business owner with employees or subcontractors you will be required to issue W-2's to employees and 1099-Misc to non-incorporated, non-employee service providers.

Subcontractors and service providers who are not incorporated must provide a form W-9 to you in order to provide the information you need to process a 1099 form for them next January. You can download form W-9 at IRS.GOV.

I generally mail this form to all subcontractors with their first payment. If you haven't done this yet, then it would be a good idea to mail or fax a form W-9 to them now so you will be prepared to process forms in January.

I also get a head start on the W-2 process by creating a form for my employees to complete. I attach it to their paychecks and ask them to complete it and return to me no later than November 15th.

Here's a simple checklist I use each Fall to get ready:

1 - Verify current employee information -create a simple form that you can attach to the next paycheck for each employee requesting their name, current address, social security number. I also include a line for their signature and the date they complete the form. You may even want to attach a W-4 form.

2 - Download Form W-9 - you can fill out this form online, then print multiple copies for distribution to any vendors who will receive a 1099 form. Independent contractors and other non-incorporated vendors who received $600 in the current tax year require issuance of a 1009.

3 - Order forms now - order W-2's, 1099's and corresponding envelopes now. You can visit my website,, for money-saving offers or contact the IRS at 800-829-FORMS. The IRS forms are free, but not computer friendly. You can also order extra W-3 and 1096 transmittal forms from the IRS. Local office supply stores will be selling W-2 and 1099 processing kits soon. These are especially great if you process your payroll manually.

4 - Make sure your tax tables are up to date - If you are using QuickBooks, be sure your subscription is up to date and that you are downloading updates when prompted. Peachtree users - make sure you order the tax tables for 2008 soon to assure that you are ready for end of year processing.

Don't forget! W-2 forms for 2007 have been redesigned

Order compliant forms soon to avoid last minute stress!

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Next time: How do I add my logo to invoices, credit memos, and statements in Peachtree 2008

I hope you find this discussion useful. If you have questions about this topic, just drop me a line at If you are a Peachtree user, check out
Don’t forget that we are now serving Incline Village and Lake Tahoe. We have two great consultants in the area that will be happy to assist with QuickBooks or Peachtree training & support.

Visit our website at QuickBooks newest Point of Sale is great! If you are using POS and need assistance, call us!

Well, that’s it for now. I appreciate your time and hope you will join me again next time for another in our Quicklet series. If there are topics you would like me to cover or have questions, send your email to

I’m Jayne Miller, The QuickbooksGal and your Peachtree Pro. Thanks for listening.

Jayne Miller, is the owner of Custom Business Solutions, is a consulting firm in Reno, NV that specializes in providing bookkeeping and software support.

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