Overview
This guide includes tasks for payroll year-end processing, including:
Year-end rollovers
Integrity reporting
Year-end form processing
Year-end information reporting
Year-end forms include the following:
W-2 for employees
499R-2 for employees who work in Puerto Rico
1099 for contract, retired, or pension employees
These year-end forms serve as important tax documents for your employees, the Social Security Administration (SSA), and the Internal Revenue Service (IRS).
These forms provide an employee's total earnings and tax information for the calendar year. You submit a copy of these forms to the SSA to update an individual's earnings information for retirement, disability, and Medicare. You also submit the forms to the IRS for reporting purposes, and to verify employees' earnings and taxes.
Form |
Description |
|---|---|
W-2 |
Formally the Wage and Tax Statement, this form reports employees' earnings. It is the IRS form employers use to report wage and tax data for employees. |
499R-2 |
The Withholding Statement - Commonwealth of Puerto Rico is the form you use to report wages for employees who work in Puerto Rico during the tax year. The IRS accepts this Commonwealth of Puerto Rico form. |
1099-R |
Use this tax form to report taxable income for distributions from profit-sharing plans, Individual Retirement Accounts (IRAs), pensions, annuities, and so on. It is formally the 1099-R Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. |
1099-MISC |
Formally, the Statement for Recipients of Miscellaneous Information, this IRS form reports taxable earnings for contract employees or any other non-employees who work for a business. |
1099-NEC |
The formal name of this form is Nonemployee Compensation. Beginning with tax year 2021, use this form to report nonemployee compensation for any contract employees or non-employees who worked for a business during a tax year. 1099 NEC must be used for NEC E-filing. |
See Sample Forms