E-filing 1099 Forms and W-2 Tax Returns for your Medical Office?

What’s Involved in E-filing 1099 Forms and W-2 Tax Returns?

E-filing 1099 and W-2 forms is done for a variety of reasons. If you are filing taxes for a business that employs more than 250 employees, you are required to e-file your W-2 forms to the Social Security Administration (SSA), although there may also be exceptions granted by the IRS if your business is unable to e-file the forms. If you employ fewer than 250 employees, you do not have to e-file those forms, but it is still strongly encouraged for processing time. Each state has its own different tax laws and methods that they use for filing W-2s and 1099 forms, so you will have to visit your state’s tax department website to see what they require for e-filing.


Filing 1099 forms and W-2's
Filing 1099 forms and W-2’s

Format Requirements for Submitting W-2s to the SSA

The SSA has a set of standards that they use for submitting e-filed W-2s (EFW2), and they do have documents on their website that specify in detail how to format your document. Using the SSA Business Services Online (BSO) feature, you have a number of different options you can use for filing a W-2 or wage report with the SSA. The BSO allows you to create W-2 forms for your employees by simply filling in the required fields, submitting the finished files to the SSA, printing copies for your employees, and checking the validity of the form data with AccuWage, a data-checking software.

Submitting a 1099 Form to the IRS

If you are self-employed; own stock, an IRA, or a 401(k); or have another form of income that would not apply to a W-2 form, you will usually submit a 1099 form directly to the IRS. There are multiple ways to e-file these forms with the IRS. There are some services that you can sign up for where you simply answer questions about your business or income information, such as the IRS’s own Freefile feature, if your business or personal income is $58,000 or less. If you’re using your own software to prepare your taxes, it will usually send the completed e-file through a secure channel, and you have the option to pay the IRS directly via credit card, electronic bank transfer, or by check through the mail.

Submitting W-2s and 1099s to the State Tax Department

Many states that have W-2 e-filing for businesses, or let you file 1099 online on their website will follow the same standard and formats set by the SSA. Some states may have more specific requirements for file formats, some may allow text and spreadsheet files to be submitted, or some others may only allow text files. Some states may even have downloadable forms that can be filled in and submitted in an upload section on the state’s tax department website.

Other Useful Tips and Notes for Submitting W-2s and 1099s

•    If you’re submitting W-2 forms, you will want to make sure your business has an Employer Identification Number (EIN), given by the IRS, as that will be required when you submit your W-2s to the SSA.
•    If you decide to efile 1099 as self-employed or a business that does not have other employees, you usually do not need an EIN; however, if you operate as a partnership, file certain returns, withhold taxes to a NR employee, or meet any of the criteria as specified by the government, you will need an EIN.
•    It’s generally recommended that you submit a wage report, usually generated by the software your payroll department uses, over the BSO if you employ more than 20 employees, but, again, make sure that this wage report meets the SSA format standards. Visit our LiveJournal account and post any ideas or comments on this article.

Take care!

The Ins and Outs of Labor Law Posters – A Detailed Explanation

There are countless things to know when owning a business.

The U.S. government requires that you adhere to certain labor guidelines. Specific State and Federal labor law posters must be displayed in your workplace.

You must adhere to labor law guidelines.
You must adhere to labor law guidelines.

More to the point, you must have the right posters.

And they must suit your Federal and State requirements for employee information and safety. Take these posting rules seriously. Non-compliance can result in steep fines, and possibly having your business closed until you can operate within the guidelines again.

Get these posters from a trusted source.

This is important, because laws change, are added to, replaced, or are eliminated at any time. These postings provide details your employees need to be aware of. Typically, they display data regarding the employees’ safety, or rights in your workplace.

Find a labor law poster provider with in-house legal staff.
Find a labor law poster provider with in-house legal staff.

You might not know that changes have taken effect.

So, you need a provider who is current on these details. A good provider will alert you of new info.  More specifically, search for one with in-house legal staff. A good long term provider will have competent customer staff too.

Ignore these poster suggestions, and your business could suffer.

Some businesses that fail to comply end up with large fines, or shut down until they are back in compliance. Knowledge of workplace safety and employee rights benefits everyone. Finding a trustworthy source for your labor law posters is the best solution.

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Simple Points To Know When Using HCFA CMS 1500 Form

Fill out CMS 1500 Forms for medication billings
Fill out CMS 1500 Forms for medication billings

The HCFA CMS 1500 form: One of the most important insurance payment request forms.

Medical billing typically requires the use of several forms, for different purposes. Confusion can often result from the myriad of options. One of the most important insurance payment request forms is the HCFA CMS 1500 form. When the form was created originally, it was labelled the HCFA 1500. Nowadays, it’s called the CMS 1500. The name change came as a result of the centers for medicare and medicaid services. Some of the Medicaid State Agencies require this form to process billing.

The standard CMS 1500 form is used to claim by suppliers and non-hospital providers.

These forms must be submitted within a year from the date of service. Since the form is printed using a certain kind of ink, you can’t simply download or copy it. For the sake of speed and efficiency, the payers typically use Optical Character Recognition technology to scan the information, and process the requests for payment.



If the form is not exact it will not be read correctly.

Get your forms submitted without error requires using the exact form – ink as well – and the right information. When you go to submit your claim forms, make sure that you have the most current form cms 1500, and make sure it has the correct ink. Failure to follow these 2 simple rules could result in form rejections and delayed reimbursements.

What’s worse is that if you wait too long to re-send the cms 1500 version 02/12, there’s a chance you may not be paid at all. So make sure when purchasing this form, you are buying from a company that is reliable, and has the exact ink that is needed. A trusted provider of this product is JustCMS1500Forms.com. Their forms will ensure that your medical office receives a smooth stream of reimbursements from their submissions.