What Is W-2 & 1099 Preparation?

W-2 and 1099 preparation is the process of accurately preparing and filing year-end tax forms that report payments made to employees and independent contractors. These forms are required by the IRS and must be issued correctly and on time to remain compliant.

In simple terms, W-2 and 1099 preparation ensures the people you paid during the year receive the proper tax documents and that the information reported matches your payroll and financial records.

What W-2 & 1099 Preparation Includes

W-2 and 1099 preparation focuses on accurate year-end reporting for employees and contractors, ensuring compliance with federal and state requirements, including:

Payroll & payment review – Reviewing payroll and contractor payment records for accuracy

Tax information verification – Confirming employee and contractor tax information (W-9s and payroll data)

Form preparation – Preparing W-2s for employees and 1099 forms for contractors and vendors

Government filing – Filing forms with the Social Security Administration, IRS, and applicable state agencies

Recipient distribution – Delivering forms to employees and contractors by required deadlines

Reconciliation & compliance – Ensuring reported amounts match payroll records and bookkeeping data

Why W-2 & 1099 Preparation Matters

Proper W-2 and 1099 preparation helps businesses:

• Stay compliant with IRS reporting requirements

• Avoid penalties for late or incorrect filings

• Ensure employees and contractors receive accurate tax documents

• Maintain clean and consistent financial and payroll records

W-2 and 1099 preparation ensures year-end payroll and contractor payments are accurately reported, filed on time, and compliant—giving business owners peace of mind during tax season.