Recognizing and Examining Form 1099-NECs: Toward the year’s end, Square’s internet-based finance administration creates and documents Structure 1099-NEC for every one of your project workers. By heading to Tax Forms in the Payroll section of your Square Dashboard, you may print these forms to give to your contractors. Although Square Payroll prepares Form 1099-NEC on your behalf, you and your contractors are still in charge of ensuring that the data on the form is valid and completing their taxes.
Here are some things to remember:
By January 5, 2023, at 8:00 p.m. PST, make sure that all contractor payments for 2022 are entered into Square Payroll.
Note: Only valid for businesses that have already submitted at least one payroll with a 2022 pay date. Form 1099-NECs are automatically generated by Square Payroll and submitted to the IRS online.
If you want Square Payroll to mail Form 1099-NEC to each member of your team, turn on Send W-2s and 1099s by physical mail before January 5, 2023, on the Payroll Settings page. For all contractors who were paid in the previous year, Square will mail a tax form to the addresses on record.
A copy of Form 1099-NEC is also available to contractors who have online accounts via the Tax Forms tab or Square Team App. You can also download the forms and hand them out on your own.
Note: Inactive team members are unable to sign in to the team app. Deactivated team members can only access payroll records through their Team Member Dashboard, including tax returns and paystubs.
Form 1099-NEC is automatically generated by Square Payroll and submitted to the IRS electronically. The Combined Federal/State Filing (CF/SF) Programme no longer accepts Form 1099-NEC, thus you must speak with your state’s tax authority directly to file the form on a state level. There are no state filing requirements for Form 1099-NEC in Alaska, Florida, Illinois, Iowa, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, or Wyoming.
Only if backup state withholding is reported to do Maine, Ohio, South Carolina, Utah, Virginia, and West Virginia have Form 1099-NEC reporting requirements. By January 5, 2023, you can uncheck the box next to “Automatically file Form 1099-NEC for this contractor” on their Payroll Team profile if you do not want Square Payroll to file Form 1099-NEC on your behalf.
There is no Form 1096 filed by Square Payroll. Square electronically files Forms 1099-NEC, so Form 1096 is not necessary.
1. Get Your Square Payroll Form 1099-NECs by downloading it.
To get a hold of your Form 1099-NECs:
- Go to Square Dashboard > Tax Forms > Payroll.
- A.zip file containing your Form 1099-NECs can be downloaded by clicking the blue link that ends in Square_2022_1099.zip.
- Using a Mac or Windows computer, follow the procedures below to extract the Form 1099-NECs from the downloaded.zip file.
On a Mac, extract your Form 1099-NEC from the.zip file
The.zip file holding your Form 1099-NECs can be found in your Downloads folder on the majority of Mac machines. You may either immediately access the file by opening the Downloads folder or by searching for Square_2022_1099.zip in your finder. Double-click the.zip file after finding it. The information in the.zip file will be automatically extracted by your computer, generating a folder that contains PDF versions of your Form 1099-NECs.
On Windows, extract your Form 1099-NEC from the.zip file.
Depending on the version of Windows you are using, there are different procedures for extracting your.zip file. Search for Square_2021_1099.zip or browse for the file in My Computer’s Downloads folder to find it.
2. Check your Square Finance Structure 1099-NEC information
You and your project workers are answerable for guaranteeing the data on Structure 1099-NECs is right. We’ll begin producing draft Structure 1099-NECs on December 19, 2022. When these structures are prepared, you’ll have the option to see them by going to Finance > Tax documents in Square Dashboard. If it’s not too much trouble, survey them for precision. You will have until January 5, 2023, to audit and refresh your workers for hire’s data:
- Complete name
- Federal retirement aide Number (SSN)
- Street number
Stay away from these normal blunders:
Erroneous or incorrectly spelled names, inaccurate SSN, utilizing epithets or abbreviated names, titles previously or after the endless name changes not answered to the Federal Retirement Aide Organization (SSA). Dive more deeply into these basic fields on the SSA site.
You can refresh your project worker’s data by going to Finance > Finance Group. You can then download and see a refreshed draft of Structure 1099-NEC in Tax documents the next day.
3. Circulate Square Finance Structure 1099-NECs
Square Finance creates a duplicate of Structure 1099-NECs for every one of your project workers on the web. Guidelines are incorporated into the structure. The computerized duplicate for Structure 1099-NEC can be seen and printed from either their internet-based Group Dashboard or in the Group Application. Your project workers should agree to get computerized duplicates of their Structure 1099-NEC, if not, you should give them an actual duplicate.
On the off chance that you would like for Square Finance to mail an actual duplicate of Structure 1099-NEC to every one of your colleagues, explore to your Finance Settings tab and flip on Send W-2s and 1099s by means of paper mail by January 5, 2023. A tax document will be sent to the location on record for all workers for hire that was paid in the earlier fiscal year.
Assuming you might want to quit Square Finance recording Structure 1099-NEC for your benefit, you can uncheck the case to “Naturally document Structure 1099-NEC for this worker for hire” in their Finance Group profile by January 5, 2023.
Note: On the off chance that you pick to have Square mail your project workers an actual duplicate of their Structure 1099-NEC, we will not resend the tax document on the off chance that a worker for hire doesn’t get it (because of an invalid location or different reasons).
On the off chance that your project worker has an invalid street number and your business has substantial postage information, their Structure 1099-NEC will be gotten back to your business. You are then answerable for furnishing them with a duplicate of their Structure 1099-NEC. You can give your worker-for-hire a printed duplicate. This can be downloaded from the Finance > Tax documents in Square Dashboard.
Assuming your project worker has invalid postage information and your business has an invalid street number, you are liable for downloading your Square Finance Structure 1099-NEC and giving them to your project workers.
In the case that your project worker’s Structure 1099-NEC is gotten back to your business, guarantee that your citizen address in Square Finance is precise. You can see what address is on record or update the citizen address for your business in the Business Data segment of your web-based Finance Dashboard.
You can get a duplicate of your Structure 1099-NEC under the Finance > Tax documents in Square Dashboard. Structure 1099-NECs are not accessible in the Square Finance application.
Project workers with online records can likewise get to a duplicate of their Structure 1099-NEC under their Tax documents tab or through the Square Group Application. Starting with the charge year 2020, the 1099-MISC has been overhauled because of the renewed introduction of Structure 1099-NEC. Managers should utilize Structure 1099-NEC to report nonemployee remuneration, like installments to self-employed entities. Structure 1099-MISC is not generally used to report workers for hire installments.