by Nicolas Williams, Lead Accounting Specialist
SDP offers 1099 Filing for the 2023 Year End for all clients, regardless if you recorded 1099 wages in our system or not.
Starting January 1, 2024, the Internal Revenue Service (IRS) requires all Information Filings 10 or more Consolidated to be filed electronically. Information Filings include both 1099 Series as well as W-2s.
Clients that might process 1099 forms manually/independently will need to file electronically for 2023 returns. SDP can file for clients for a fee to save extra work, waiting for the TCC (Transmitter Control Code) from the IRS, and resolve IRS errors for any transmission issues.
Penalties apply for not electronically filing Information Filings 10 or more. The amount of the penalty is based on when you file the correct information return. The penalties are as follows:
- $60 per information return if you correctly file within 30 days (by March 30, 2024 if the due date is February 28, 2024); maximum penalty $630,500 per year ($220,500 for small businesses, defined below).
- $120 per information return if you correctly file more than 30 days after the due date but by August 1, 2024; maximum penalty $1,891,500 per year ($630,500 for small businesses).
- $310 per information return if you file after August 1, 2024 or you do not file required information returns; maximum penalty $3,783,000 per year ($1,261,000 for small businesses).
Clients must notify us directly if they would like SDP to File 1099s for you. SDP does not file 1099s automatically.
Clients that would like SDP to file 1099s can have either option provided to submit contractor information:
- Clients recording 1099 wages within our system – we will create the report for you to review and correct necessary information.
- Clients that do not record 1099 wages within our system – we can provide you with an Excel Spreadsheet to list 1099 Contractor information and send to SDP.
Deadline to submit 1099 Information to SDP is January 12, 2024 to avoid any Late Processing Fees. SDP will still file 1099s up until when a client requests.
Clients interested in 1099 Services may send an email to [email protected] or call SDP Customer Service at 909-946-2032.
Pricing for 1099 services is explained below:
- 1099 Processing Fee for All Clients: $125.00 Base plus $10.00 per Each 1099.
Delivery Fee:
- $18.00 Courier Fee for next Day Delivery (All Clients are subject to delivery fee, unless specified for pick-up) .
Late Submissions received after the January 12, 2024:
- Delivery by January 31, 2024 is guaranteed.
- $75.00 Late Additional Fee (Base Fee + Late Fee + per Form Fee).
Any request on/after the January 22, 2024:
- Delivery by January 31, 2024 is guaranteed.
- $150.00 Late Additional Fee (Base Fee + Late Fee + per Form Fee).
Requests on/after the January 26, 2024:
- Delivery not guaranteed by January 31, 2024.
- Delivery is not guaranteed to be provided before IRS deadlines.
- Estimated turn around time for all requests, is five (5) business days.
- $200.00 Late Additional Fee (Base Fee + Late Fee + per Form Fee).
Adjustment Fee for Corrections:
- $150.00 ADJ Fee + per 1099 fee (see clients 1099 billing) and includes updated E-File Submission.
- Example: One 1099 Correction Needed: $150.00 + $10.00 + $18.00
Our payroll professionals assist our clients with payroll, workforce management, benefits administration, and human resources needs. To get started or learn more about these solutions, simply contact us today.
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For more information about our payroll services, please contact our payroll professionals at 909.946.2032. Or, click here and Let’s Talk!
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*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.