Sue Hedlund


Tips to Navigate 2012 W-2 and 1099 Changes


Every year brings with it new changes related to W-2 and 1099 forms and reporting requirements. Due to the government's increasing focus on the proverbial tax gap, it's more important than ever for small businesses to understand the changing W-2 and 1099 reporting environment.

Here are some of the key changes that will affect small business this year.

W-2 Form Changes and New Additions
The reduced rate of 4.2 percent for social security tax withholding (for employees only) is extended for wage payments made in 2012. Also new in tax year 2012, compensation of $600 or more that is paid to H-2A visa agricultural workers must be reported on Form W-2 if the worker furnishes a valid taxpayer identification number. If the worker does not furnish a valid taxpayer identification number, report the payments on Form 1099-MISC.

In addition to the above W-2 form changes, there are several specific form updates to various 1098 and 1099 forms. Below are several of the more prominent changes for 2012:

Below are some important dates for filers to remember as they enter tax season: