Filing W-2, 1099 and 1095 forms with paper is becoming less popular as we continue to see more businesses filing electronically. Here are 5 reasons to ditch paper and file paperless this tax year.
The fast and easy way to file tax reporting forms is completely paperless. Electronic filing will most likely become one of the only ways businesses can file soon. When productivity and time are incredibly important to businesses, why not completely and securely file from your computer with only a few clicks of your mouse. What is completely paperless filing and why does it save you more time than many other electronic filing options? When you use an all-inclusive filing option that can print and mail recipients copies for you, like Nelco, it means no time spent stuffing envelopes or mailing paper forms for you. You may already have a filing service like this available to you through your software.
Electronic filing is the way to go if you want the convenience of filing your W-2, 1099 and 1095 forms accurately and securely. With supply chain issues still lingering across many industries and with changes that the IRS and SSA continue to present over these past few years, a paperless filing method to meet all your requirements and deadlines is the best option. In most cases you will even get notifications that your forms were submitted, received, or processed faster than if you mail in your forms.
Filing electronically will help you avoid penalties. When using a trusted e-file service it will help you to avoid mistakes, which can lead to costly fines. An e-file service, like Nelco, will do the math and matching of data for you through your software. It guides you and warns you if any data doesn’t match up with needed requirements.
The IRS released regulations recommending that the e-file threshold for information returns be lowered from 250 to 10 in Tax Year 2022 (to be filed in 2023). This proposed regulation includes the total for all aggregated forms filed. Meaning the e-file threshold would no longer apply per form type, but rather filers that have a combined total of 10 or more information returns would be required to electronically file.
The current law requires businesses to e-file if they file 250+ forms. Businesses filing less than 250 forms have the option to e-file or submit paper filings by the year-end deadline. This will no longer be the case once the final regulations are issued. Learn more about the requirement changes here.
There are many electronic filing options available today, but not all are created equal. There are only a few e-filing options for businesses that include a truly paperless filing experience. What does that mean? The printing and mailing of recipient copies is done for you in addition to the other filing options. It is a federal requirement to deliver tax reporting form copies to employees and recipients. The process is typically time-consuming for most businesses when printing and mailing paper forms. This can be handled for businesses by some electronic filing services, like Nelco. They make it easy to file directly through your company’s software to all government and state agencies, as well as deliver recipient copies for you. They partner with 100s of software companies to offer their paperless filing services. You can learn more about their services here.