Worked Multiple Jobs This Year?

Whether you were a W-2 employee, 1099 contractor, or both, keep track of the pending W-2s and 1099s you should be receiving early next year.

Employers and contracting businesses/organizations are typically required to furnish W-2s to employees and 1099-NECs to contractors, respectively, by January 31st

Note: A W-2 or 1099 is considered furnished if postmarked by January 31st.

If you’re a W-2 employee, your employer may furnish your W-2 in hardcopy form via postal mail or electronically via an internal company or external payroll provider web portal.

Make sure your information on file with your employer is up to date (ex: current mailing address, e-mail address) and your login credentials for the internal company or external payroll provider web portal are active.

If you are no longer employed by the employer, be sure they have your current information as most employers will send W-2s to the last known address on file. Keep in mind your login credentials for any web portals may no longer be active so check with the former employer on how you will be receiving your W-2.

For contractors, it’s also important to make sure your information on file with the contracting business/organization is up to date. If any information has changed, be sure to provide them with updated information as soon as possible. Most information can be provided via a current Form W-9 (which you may be asked for nevertheless).

Keep in mind, if you were paid less than $600 during the year, you will not receive a 1099-NEC but are still responsible for reporting this taxable income. If you have a proper accounting/finance solution in place, you should be able to easily account for and report all income for the year.

Also, make sure your estimated tax payments are sufficient to meet IRS Safe Harbor rules.

If you worked both W-2 and 1099 jobs and adjusted your W-4 withholdings to account for 1099 income, you may still want to check in with your tax professional (if applicable) to be certain your withholdings are sufficient; otherwise, you may still need to make an estimated tax payment to avoid potential tax penalties.

If you haven’t received a W-2 or 1099-NEC by early February, be certain to follow-up with the employer or contracting business/organization.

Be proactive, not reactive!