What is a 1096 Form? A Guide for US Employers

These tools can also help you collaborate better with an advisor, business accountant, or tax professional. Some payroll solutions also allow you to file taxes from their gateway and submit information directly to the IRS website. Form 1096 is submitted with the remaining tax return forms only when the taxpayer files them via mail. It provides a glance at https://kelleysbookkeeping.com/how-to-calculate-accrued-payroll/ all the forms inside the package so the official personnel can forward them to the appropriate department. In box 5, you’re asked for the “total amount reported with this Form 1096.” This number will be specific to the type of information return you’re filing with your Form 1096. If you’re filing Form 1098-T, 1099-A or 1099-G you can leave this box blank.

Remember that the information you’re entering here applies to you, not the independent contractor you’re submitting a 1099 for. The IRS assigns mailing locations based on the state your business’ What You Need To Know About Form 1096 And Its Due Date principal location is located in. Mail your Form 1096 and Copy As of the respective paper information returns to your designated IRS office, which are listed on the IRS website.

Submit Your Form 1096 — and Submit It on Time

If you run a small business and paid an independent contractor to do work for you this year, odds are you need to submit Form 1096 to the IRS. You can order copies of 1096 forms from the IRS website, and they will send them free of charge. You should expect them to arrive within 10 business days unless there is a delay. The filing deadline for Form 1096 depends on the filing deadline of the form it accompanies. The filing deadline is the same whether you file by mail or online. Have questions about managing your international employees and contractors?

If your form asks for a number from more than one box, you’ll add the numbers in those boxes together and fill in the total in box 5. Paying independent contractors or sole proprietors—especially global ones—requires organizational prowess and a proclivity for remembering dates. But, when you’re a business owner, you likely have a lot of other work on your plate. That’s when a Contractor Management and global workforce partner can step in to help you stay ahead of your finances and navigate compliant payments across the globe.

File your tax forms on time

If you file these information forms electronically, either through the IRS FIRE System or a tax preparation software, you do not need to complete IRS Form 1096. IRS Form 1096 only accompanies these information returns when they’re filed by mail. If you’re a small business owner who needs assistance with the tax process, the team at Lendio can help. We have a Tax Assist program that specializes in helping small businesses sort through their tax forms and submit everything correctly.

Filing your information returns electronically – via the IRS FIRE system – exempts you from using Form 1096. The IRS FIRE system, which stands for “File Information Returns Electronically,” is an electronic network used to accept and process most types of filing forms. If a business submits 250 or more of any information return, it must do it electronically – and consequently, would not have to file Form 1096.