On February 23, 2023, new requirements went into effect for calendar years beginning after 2023 that mandate electronic filing of certain employment returns from the current 250 threshold down to just 10 forms, which involves an aggregate count of all W-2 and 1099 forms to be filed in a given future calendar year.
The Federal Register publication can be found here:
While the old rules apply for 2023, we would recommend that employers begin the transition to file their returns electronically in 2023 if they have not been already doing so.
E-filing options are already available for W-2/W-3 forms as well as for 1099-NEC in the latest releases of Advanced Accounting. For other 1099 forms, the IRS is making a portal available to file those forms (which can include form 1099-NEC as well) which will be available for filing 2023 forms:
This change does not impact 941 and 940 filings although those can come into play in determining whether corporate tax returns (form 1120) have to be filed electronically.
This change has been anticipated for quite some time and in part consistent with changes states have been making for many years. There are many advantages to filing in this manner and while it will be a change for some users, in the long run, it will be advantageous not just for the government administration but for business efficiency as well.
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