The Top 10 Myths of the 2014 W2 and 1099 Reporting Season

As if Black Friday shopping and the hustle and bustle of the holiday season weren’t taxing enough, it’s also time to think about tax reporting. This time of year, it can be difficult to keep track of our schedules and to-do lists, let alone the ever-changing tax reporting requirements for businesses.
Greatland, a provider of W-2 and 1099 products for businesses, receives thousands of calls each year from questioning customers who often mistakenly believe in one of the many tax myths that plague the industry. But what exactly is a tax myth?

• Tax myth \’taks ’miTH\ noun: A FALSE idea or story believed by many regarding the annual fee required by the government to support specific facilities or services.

Failing to understand the real truth behind these myths can cost your business the cost to refile or potentially steep fines if reporting is not completed correctly. Greatland breaks down fact vs. fiction for this filing year so companies can be better prepared.

W-2 & 1099 Form MYTHS vs. REALITIES

1. Myth:  State 1099 reporting is not required if there is no state tax withheld.

1. Reality:  Check your state’s 1099 filing requirements. Many states require 1099s to be filed even if there is no state tax withheld...

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Source- Isaac M. O'Bannon (www.cpapracticeadvisor.com)