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Easing the 1099 reporting burden

With the holidays approaching, most of us look forward to vacations and celebrations, but many in the US face the looming headaches of 1099 filings and year-end compliance work.

It hasn’t gotten easier from year to year. Over the past decade, the US has experienced a sharp jump in the number of self-employed workers, increasing 14.4 percent since 2001 to 10.6 million in 2012, according to a report published by EMSI. In addition, the US government passed the “Patient Protection and Accountability Act” in March 2010, which broadened the definition of vendors and payments that must be reported.

Both of these factors greatly expanded the number of 1099s that need to be filed. In almost every Xero conference, forum and Xero certification class that we’ve attended in the past few months, I have been asked when Xero would properly support 1099s.

Well, we have a present for all of you in the US – completely revamped and simplified 1099s plus GAAP compliant reports – just in time for tax time.

With the new functionality, complete 1099s in 3 simple steps:

  1. Create a rule
  2. Fine tune the details
  3. File your 1099 online

That’s right, file your 1099s online. Xero is being integrated with Track1099 to make it quick and easy to complete your 1099s all in the cloud. Just think – no paper, no printing and no 1096s.

See how it works in this video:

In addition, we are happy to announce the release of General Accepted Accounting Principles (GAAP) compliant reports – specifically, GAAP versions of the Xero Income Statement and Balance Sheet. We are actually providing access to both GAAP and IFRS compliant reports in one platform. Do you have a client in the US – see GAAP compliant reports, another in Canada – see IFRS-compliant reports. Based on the client organization’s country of origin, Xero can generate the reports in the proper accounting standard.

These are just a couple of the features in today’s jam-packed release – see this other blog post for email templates, payment terms, outstanding statements, remittance advice (for single payments), sales & purchases dashboards and auto-reversing manual journals.

 

Read more about Accountants

 

9 comments

Gayle Buchanan
11 December 2012 #

Customers will really appreciate the AP & AR change out, on their behalf – thanks so much for simplifying accounting terms for them and the additional email templates are a fab early Xmas pressie too.

Doug Sleeter
11 December 2012 #

Great integration with Xero and Track1099. And even more importantly than FILING 1099s online, Track1099 lets you DELIVER 1099s to recipients online via an online portal. No more printing! Thanks @Xero for great tracking so these will be easy this year.

Roger
13 December 2012 #

This looks really handy. But, I utilize the payrun feature to track the services sub contractors do for us. So, I guess I’ll need to wait until the two can play nicely…

Either way, nice work. Keep the improvements coming!

Minto Grewal
23 July 2013 #

It will be great if 1099 Report can be extended to Canadian Customer to file T5018 for Sub Contractors

Jeff Merino
26 October 2013 #

Minto

Check out Tax1099.com and this is the only 1099 online e-file provider that supports foreign country. Last year we used then and it works great.

They also integrates with Xero, Intacct, QB and other accounting software.

Ian Vacin
28 October 2013 #

Minto, thanks for the comment. While not possible for this tax year ending in 2013, we’ll definitely look into adding it in 2014.

Ronan Quirke
29 October 2013 #

FYI – Tax1099.com are indeed a Xero Add-on partner: http://www.tax1099.com/Menus/xeroindex.aspx

Casey
29 January 2014 #

I don’t see the 1099 Report option or any ‘Tax Reports’ heading for that matter. Am I missing something?

Peter Wen
29 January 2014 #

In order to access the 1099 Report, you need to be set as an Advisor. You can do this by going to Settings>Users.

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