It would be nice if we could all pay our taxes with a smile, but normally cash is required. The deadline for business owners to meet their tax reporting requirements is fast approaching. W-2 and/or 1099 forms must be sent to employees no later than January 31st.
The W-2 Wage and Tax Statement is a form used to report an employee’s wages and taxes withheld for the year. Employers must keep a copy of the W-2 for their own records, and send other copies to the employee, the social security administration, the IRS, and state and local governments that require tax withholdings.
Form 1099 is used to report amounts paid to independent contractors. If you hired outside contractors this past year for any services valued over $600, you must send the contractor and the IRS a form reporting your payments.