Compliance Update - January, 2021
Service Bureau - 1099-NEC State Direct Reporting
1099 Pro is proud to announce that the 1099 Pro Service Bureau will be providing an add-on feature where clients can outsource their 1099-NEC state direct reporting to 1099 Pro!
The Backstory:As many customers know, the IRS did not include in the new 1099-NEC tax form as part of the IRS's Combined Federal/State Filing Program. This poses a major concern as approximately 43 states/territories still require the reporting of the 1099-NEC tax form directly to their department of revenue or taxation. To complicate matters, each state has its own web platform (or CD/Paper mailing platform) and account requirements, its own electronic file format, its own reporting thresholds, and the list goes on.
The Solution:To simplify this process on behalf of our customers, 1099 Pro has developed a Service Bureau add-on that will allow customers to utilize 1099 Pro's automated state reporting platform, where allowed by the states. For more information on this platform, including supported states and pricing, please see the below link.
- Service Bureau - State Reporting: https://wiki.1099pro.com/display/PDWA/Service+Bureau+-+1099-NEC+Reporting+Details.
Any state that is not directly supported by the 1099 Pro Service Bureau can still be supported by our 1099 Pro Enterprise or Corporate Suite software. These software products give you the ability to create your own state direct files (electronically or on paper) in each states specific file format and naming convention. Then, you are able to submit these files directly to the state under your own company accounts. The only difference is that these states have regulations or restrictions that prevent 1099 Pro from being able to act as a Third Party Filer and report to the states on your behalf.