W-2s and 1099-MISC Forms - Only a Few More Days to Prepare and Distribute

If you just looked out from that pile of work you have been buried under and you just realized you need to furnish W-2s to employees and 1099-MISC forms to independent contractors by next Monday (February 2), I have some help for you.

General "How To" For W-2s and 1099-MISC Forms
I have put together a quick "how to" for both forms:

• Preparing W-2s for Employees
  
• Preparing 1099s for Independent Contractors

The fastest way to prepare those W-2s is to go to the Social Security Administration's Business Services Online site to register and prepare W-2s. The 1099s will have to be sent to the Internal Revenue Service. Or you can use an online service (I mentioned some in a recent post).

What's the Penalty?
If you fail to furnish W-2s to employees by February 2, and you can't show "cause" why you didn't get them out, you may be liable for penalties. The IRS says these penalties may be $50 per W-2, so if you have a lot of employees, it's time to get busy.

Disclaimer:
These instructions are intended to provide a general overview of these forms so you will know what information to collect. They are not intended to be specific to your situation, nor should they be relied upon as complete or detailed.