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1099s Due January 2025
What’s a 1099? Why Do I Care?
IRS Forms 1099-NEC and 1099-MISC are how you report payments made to vendors & contractors to both the IRS and the recipient. Issuing 1099s substantiates your tax deduction for payments to vendors.
The IRS imposes substantial penalties for failing to issue 1099s to recipients on time.
Accurate & timely filing protects your deductions and avoids penalties.
Key 1099 FAQ:
Who Gets a 1099? A contractor or vendor paid $600 or more during the year for services (with exceptions).
When Are 1099s Due? January 31, 2025
Is a 1099 the same thing as a W-9? Nope. Form W-9 is the form a vendor or contractor uses to provide their name, address, and tax ID. You then use the information on the W-9 to prepare the related 1099.
Pro Tip: Be Proactive!
Collect W-9s before paying any contractor and track payments throughout the year. Staying organized now will save you time and stress when it’s time to file.
Need assistance with 1099 preparation or contractor tracking? Our team is ready to help—let’s make tax season hassle-free!
What Employers & Employees Need to Know About 401k Automatic Enrollment
The SECURE 2.0 bill introduces automatic enrollment in 401(k) and 403(b) plans starting in 2025. This policy applies to businesses with new retirement plans created after December 31, 2024.
Impact on Businesses & Employees
Businesses: Starting in 2025, new 401(k) and 403(b) plans are subject to the automatic enrollment rules. However, exemptions apply to businesses with 10 or fewer employees, companies less than three years old, and church or government plans.
Employees: In new plans, employees will be enrolled at a contribution rate of 3%-10% of their salary, increasing annually by 1% until reaching 10%-15%. Employees can opt out or adjust their contributions at any time.
Preparing for What’s Next
Employers should ensure they are prepared to meet the new enrollment requirements, while employees can take advantage of increased opportunities to build their retirement savings with the flexibility to adjust contributions as needed.
Reach out if you’d like help understanding how this new rule impacts your business.
As 2024 comes to a close, here are the essential tasks to tackle to ensure compliance and maximize tax benefits:
Must Be Completed by 12/31/2024:
PTE Elections/Payments: File Pass-Through Entity (PTE) tax elections and make payments to take advantage of state tax benefits.
401(k) W-2 Contributions: Ensure all 401(k) contributions are submitted by year-end to be properly reflected on 2024 W-2 forms.
CTA/BOI Compliance: Submit Corporate Transparency Act (CTA) or Beneficial Ownership Information (BOI) filings as required for regulatory compliance. More information here: (CTA LINK)
S Corp Reasonable Compensation: Finalize reasonable compensation adjustments for S Corporation compliance with IRS rules.
Must Be Completed by Tax Return Filing:
HSA Contributions: Maximize Health Savings Account contributions to lower taxable income.
IRA Contributions: Contribute to traditional or Roth IRAs to boost retirement savings and potentially reduce taxes.
Business Owner Retirement Contributions: Fund SEP IRAs or Solo 401(k)s to take advantage of extended deadlines for retirement savings.
Stay Ahead of the Deadlines!
Completing these tasks on time ensures compliance, streamlines tax filing, and optimizes your financial strategies.
From the Desk of Agate CPA
Expert Financial Support Tailored to Your Industry
Our team works with law firms, contractors, marketing agencies, and counselors with revenue ranging from $300K to $20M. By leveraging our in-depth knowledge of these industries, we help streamline finances, ensure stability, and give business owners better control over their numbers.
Does this sound like your business or someone you know? Contact us today to learn more about how we can support your success.
Still on the fence? Here’s what one of our law firm clients had to say about working with us:
Office Hours Coming Soon
We’re excited to introduce office hours: dedicated times when our team will be available to meet with you, answer questions, and enhance communication between us and our clients.
We believe clear and consistent communication is key to your success, and these office hours are designed to make that even easier.
Stay tuned for more information!
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Sarah Harris is a CPA, MBA, and Investment Adviser Representative with over 10 years of experience advising high income individuals, law firm partners, and growth focused business owners. She specializes in proactive tax strategy and integrated wealth planning designed to reduce lifetime tax liability, not just prepare annual returns.
Based in Rogers, Arkansas and serving clients nationwide, Sarah works with professionals and entrepreneurs earning over six figures who need coordinated tax, accounting, and advisory support. Her approach combines structural tax planning, entity optimization, and forward looking wealth integration to help clients keep more of what they earn while building long term financial strength.
As a multi service strategist, Sarah focuses on aligning tax strategy with broader financial goals. She believes tax planning should drive business and investment decisions, not follow them.
