If you are a business owner and you utilize freelancers at any point, you will need to file 1099s before tax season to properly document the payments you have made. A freelancer will then use this 1099 as they go about paying their own taxes. Unlike a regular employee, a freelancer is responsible for paying all the applicable taxes on their income, leaving you without the burden of this cost. While you may benefit greatly from utilizing freelancers, especially during the initial stages of building your business, it is critical that you properly file all necessary 1099s in a timely manner.
The good news is that while this task was once a cumbersome, laborious matter that could only be handled manually through pen and paper, it is now something that can be simplified and streamlined through online e-filing. If you are interesting in utilizing our online platform for filing 1099s for freelancers you employed over the past year, check out the following five reasons why this switch will benefit your company.
#1: Less Paperwork Means Less Risk
When it comes to filing every single tax form necessary, the process can quickly become a chaotic and convoluted mess. The fewer stacks of paperwork you have piling up on your desk the better. By converting over to online e-filing, you can cut down on the risks involved during tax season. It is easy to misplace paperwork, forget to file 1099s, or completely skip steps, such as mailing the 1099 to the freelancer in question when you handle everything the old-fashioned way.
When you e-file 1099s, the process is simple and the risks are mitigated. You fill out the information through a secure online platform. The 1099 is automatically filed with the IRS for you and a copy is sent to the appropriate recipient. Meanwhile, you have access to all the records online and you save yourself from drowning in yet another sea of paperwork.
#2: A Faster Process Equals Money Saved
When it comes to operating a small business, your time is invaluable. The more time you spend sifting through documents and filling out lengthy forms, the less time you have to invest in other valuable assets of your business. In this sense, your time truly is money. When you opt for a faster process in any part of your business, you reap the reward across the business as a whole.
Online e-filing saves you a large amount of time, which means you are saving money by utilizing technology to your advantage. Instead of hours wasted purchasing forms, filling them out, manually mailing them, and manually filing them with the IRS, you can quickly and effectively complete all these steps at once. With this faster process, you free up time that can be utilized for other valuable tasks. The only question that remains— what will you do with all this extra time?
#3: Immediate Filing Prevents Forgetfulness
Do you have a tendency to procrastinate tasks? Many of us struggle to handle things in a timely fashion, which can often lead to forgetting about a task entirely. When it comes to filing 1099s and ensuring they are in the hands of freelancers and contractors by the appropriate deadline, forgetfulness can be a disaster. When you utilize online technology to e-file, everything happens right away. You don’t have to worry about a stack of forgotten papers on your desk that you remember in a panic at 1am while you lie awake in bed.
Through OnlineFileTaxes.com, you can access the forms you need. Fill everything out simply and quickly. Then, once you check out, your forms will be e-filed with the IRS. The appropriate copies will be sent to the right recipients for you as well and everything is accessible for you through your online portal. Because of how simple this process is, you don’t have to panic about forgetting an important step. It is all handled for you in the blink of an eye.
#4: An Online Platform Eliminates The Need For Expensive Software
Let’s face it. There are countless softwares on the market that help with taxes and filing. However, many of these softwares are cumbersome, costly, and extremely difficult to navigate. This can make the process more time-consuming rather than simpler. When you just want to file 1099s for freelancers you utilized, less is actually more. Choosing an online tool, such as OnlineFileTaxes.com, means that you can quickly and efficiently accomplish the task you need to without jumping through a thousand other hoops.
This can also cut out the need for administrative and IT costs associated with 1099 processing. You can handle the task on your own, in a quick fashion, ensuring your freelancers receive their forms on time and you submit your 1099s to the IRS before the January deadline. The best part? It is extremely affordable to file 1099s through our online platform. As an approved e-file provider with the IRS, we take pride in how simple and quick we have made this once cumbersome process.
#5: Happy Freelancers For Future Work
Finally, when you handle filing 1099s for freelancers in a timely and effective manner, you will have happier freelancers. The freelancers who do work for you need to be able to handle their own taxes in a timely manner and by having the 1099s they need in hand, they can finalize their filing as well. This leaves a positive impression on the freelancers you use and builds a professional relationship. If you plan to rehire freelancers in the future for more work, ensuring you provide them with necessary documentation in a professional method will go a long way in incentivizing them to work for you again.
Are you interested in online e-filing for 1099s for freelancers? We can help. Utilize our simple online platform and you can file all the 1099s you need to in one easy place. Whether you are filing a few 1099s or hundreds, our platform will make the entire process simple, smooth, and affordable. Reach out today with any further questions about how online e-filing works.