Payroll Taxes are due in January - Do you know where your W-2s and 1099s Are?

January is the month when employers must complete payroll tax reports for employees and contractors. The due date for these reports in 2009 (for 2008 income) is February 2. So what must you do to complete these reports? Here is a quick list to get you started. Over the next week, I will give you more details on how to fill out a W-2 and 1099-MISC.

What You Need to Prepare. In order to prepare and file W-2 and 1099-MISC forms, you will need to gather the information from your payroll records from 2008. You will also need to find the official tax forms. You cannot use photocopied forms.

Where to Find Official Forms. Here are some suggested sources for those official IRS forms, including the W-2, W-3, and 1099-MISC:

• Request from IRS. The IRS will send you the official forms from the IRS website Online Order page. The forms are free, but they take up to 15 days for receipt.
  
• Included with Tax Prep Software. If you have purchased TurboTax Home and Business or TurboTax Business or TaxCut Home and Business, you can use the W-2/1099 forms preparation sections to prepare these documents.
  
• TurboTax W2/1099 Online Reporter. In addition to the W-2/1099 preparation in its software, TurboTax has a W2/1099 Reporter program that is very easy to use. It allows you to print up to 250 W-2s or 1099-MISC forms.
  
• Buy Online. There are many sites, including the major office supply companies, that will sell you these forms online.

Online Filing. If you have more than 250 forms (W-2s or 1099-MISC forms), you must file online with the Social Security Administration (SSA). If you have fewer than 250 forms, you can still file online. First, you will need to register with the SSA's Business Services Online site.

Tomorrow, I'll share with you my comparison of TaxCut and TurboTax for preparing W-2 forms and 1099-MISC forms.