New Year – new payroll tax software?

Small Business, Tax / By /

It’s a new year, so now it’s time to complete our year-end procedures and make sure we’re ready for 2022. If you have anything to do with accounting, you know this is a crazy time of year.

One important deadline for January is filing W-2’s for employees and 1099 Forms for contractors and others. I’m not going to cover the technical tax information for this post because there is already a lot of information out there on that subject. One thing that usually isn’t covered is the software used to prepare and file the payroll tax returns. So let’s see what’s out there!

Before I go further, let me start by saying the following list is not an endorsement or recommendation for any of these programs. This list was curated from multiple conversations I’ve been apart of on Twitter over the past few months. I haven’t even used all of these programs, but the referrals came from other tax professionals that I trust, so I’ve shared this list with my clients for them to find the program that works best for them.

Things to look for as you make your decision:

  • Can you import the information from your accounting software or from Excel?
    • This can help speed up the process and prevent typing mistakes
  • Do they supply all the forms that you need?
    • Some programs are per form and other give you a discount for multiple forms. Consolidating all your forms to be prepared in one software might be cheaper.
  • How do they price their services?
    • Like the point above, some are priced per form, some give you a discount for more forms, and others have a charge for add-on services.

Online Payroll Tax Software Options

Tax1099.com

Tax1099.com is a program used by a number of #TaxTwitter professionals. Their website states it is easy to use to create, verify, and file your 1099 MISC forms and more with Federal & State compliant e-filing. Their forms listing shows all (or most) versions of Form 1099, Payroll forms (like 940, 941, and W-2) and a few other forms.

Track1099

Track1099.com is also a popular program for #TaxTwitter tax professionals. This is a program by Avalara, the sales tax experts. Their website says they are the easiest way online to e-file and manage 1099-NEC, W-2, 1095, W-9, and more. They will help you prepare the forms, securely e-deliver the forms to your recipients, and e-file the return with the taxing authorities (federal and state). You can also print the forms to pdf and mail them to the recipients if you prefer.

efile4biz

Efile4Biz.com is also recommended by a number of #TaxTwitter tax professionals. This site says the can easily file and deliver 1099, W-2 and ACA Forms online. Like all the other programs, they will help you prepare the forms, electronically send them to your recipients, and then efile the forms with the taxing jurisdictions.

efilemagic

Efilemagic.com has all the features of the earlier files and their sites says their services include combined Federal/State e-File (participating states), E-Delivery, and PDF Form Generation where applicable. Choose from optional services such as Print and Mail and Tax ID Verification.

Conclusion

There are a number of online options to help you prepare and file your payroll tax returns. It shouldn’t take too long to find a solution that works for you and is cost effective. You can also click on the tweets above and review the other responses to get an idea of what people are using.

If you have any feedback on these products or want to offer other suggestions, please use the comment section to share your thoughts.

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