Frequently Asked Questions

An EIN is the Employer Identification Number a business is assigned when the register with the IRS.  It identifies your business.

The I-9 form is used to verify the identity of each employee you hire to determine that they are a U.S. Citizen.   When this form is filled out they will need documents to prove their identity such as a Driver’s License, a birth certificate or a Passport. 

The W4 form is filled out to determine the amount of tax that will be withheld from an employee’s paycheck.  This form lists their name, address and number of dependents they wish to claim.

A W2 is a form with all the information regarding the employee’s earnings for the year.  It will also include their SSN, name and address.

A W3 is a form that has all the employees payroll information totaled together.  This form must be filed yearly with the IRS.

A 1099 is a form used to report payments made to an Independent Contractor or a vendor.  There are different types of vendors and there are different boxes on this form.  There are over 30 options available.  Generally this form is used when you have paid $600 or more.  

All forms have to be sent to employees, vendors, Independent contractors and to be filed with the IRS by January 31st.  It is recommended highly to process these for the employees and vendors as early as possible because if there is an error and you have already filed the W3 or 1096 you will have to not only correct the W2 and 1099 forms, you will also have to file an amended report form as well.

A 1096 form has all the payments that were paid to qualified Independent contractors or vendors for the year.  This information is totaled together and entered on the form.  This form must be filed by February 28th*.  Based upon recent date confirmation, this date is subject to change per the IRS.