Software as a Service (SaaS) companies are responsible for various legal and government documents. Managing them all can be challenging. One type of document that you’ll submit numerous copies of is the 1099 form. You provide the 1099 to any worker whom you contract for services amounting to $600 or more in a year. If your SaaS business relies on contract employees, Compass East makes life easier for your accounting department during tax season.
At Compass East, we offer 1099 filing services for SaaS companies and beyond. Our services reduce your accounting department’s workload and ensure you meet all regulatory requirements. Get in touch for information on how our tax advisors can manage your 1099 filing process.
Outsourced 1099 Filing From Compass East
The end of each year’s first quarter is a busy time for your SaaS company. In addition to the influx in demand from clients with renewed budgets, you also have to manage your tax obligations.
Tax filing becomes complicated when managing documents for multiple types of employees. If you hire both in-house employees and independent contractors, your accounting department will need to balance W-2 and 1099 filing simultaneously.
Reduce your accountants’ workloads by delegating 1099 filing to Compass East. We offer comprehensive 1099 compliance solutions whether your SaaS business contracts 10 workers or 1,000.
Our 1099 compliance management capabilities include:
- Distributing and collecting contractors’ W-9 forms.
- Reporting contractor income through 1099 forms.
- Compiling and verifying time worked and payments.
- Assessing 1099 forms for accuracy.
Navigating the Complexities of Taxes as a SaaS Provider
As a SaaS provider, your needs are unique. Your company’s success depends on the diligent work of numerous types of employees. Some of the employees you hire work directly for your company, but others provide their services on a contract.
Hiring independent contractors offers a way for your SaaS company to reduce expenses while still receiving quality work. You may contract the software developers who build your program, the web designers who construct your site, the sales associates who drive revenue, the marketing managers who support brand awareness or the customer service reps who keep your clients satisfied.
Paying a contractor more than $600 in a year results in the need to file a 1099 form. At Compass East, we make sure you file the right one for your personnel. SaaS providers that pay independent contractors or attorneys above the $600 threshold must file a 1099-NEC. Our tax professionals have years of experience helping SaaS companies comply with 1099 requirements. We’ll ensure you file the correct type of 1099 form for each contractor and submit documents on time.
Advantages of Outsourcing 1099 Compliance
Outsource 1099 filing to remain agile and feel confident that your company complies with legal obligations. Outsourced 1099 compliance reporting creates the opportunity to:
- Reduce risk: Outsourcing reduces the risk of tax penalization. We’ll verify that your organization fulfills its 1099 requirements and retains funds to put toward business growth.
- File faster: Tax filing takes time. We have the personnel and experience to complete 1099 compliance reporting on time for SaaS companies of all sizes.
- Maintain continuity: Outsourcing 1099 filing simplifies administrative tasks at any scale. You can continue contracting web developers, graphic designers, writers and software developers as you need them instead of downsizing to make 1099 reporting more manageable.
- Ensure accuracy: We understand your obligations and the work that goes into fulfilling them. You can trust the Compass East team for accurate reporting where it counts.
1099 Compliance Experts for SaaS Businesses
SaaS companies of all sizes count on Compass East for 1099 compliance reporting when tax season arrives. Our compliance professionals have years of experience navigating the reporting challenges that come with maintaining large contractor workforces. We’ll help you understand your obligations and implement a scalable bottom-up solution to satisfy those requirements.
Let our team handle the time-consuming paperwork and communication so you can focus on developing actionable software and managing accounts. We’ll complete accurate 1099s and report them on time to give you complete peace of mind.