On Demand Webinar

State and Local 1099 Reporting

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   CPE 2.0, ATATX 1.5, IRS 2.0
All Access Membership

The IRS threw the business community a real curve ball by introducing a new form, the 1099-NEC last year to be used starting in January 2021. The second curve ball was the recent announcement that the form would not be included in the combined Federal/State reporting system. This means a lot more reporting at the state level.

Join us and discover proven methods for more efficiently meeting your State level 1099 reporting requirements as well as get updated on important changes in the law. This is one of the most important topics your organization needs to address. More and more states are partnering with the IRS to concentrate enforcement efforts on payments made by US organizations within individual states that are currently not being reported. Understand the basics of state reporting and explore best practices for determining your reporting requirements - including those brought about by recent changes in state information reporting laws.

After attending you will know how to determine which states have reporting requirements that apply to your organization. You'll also understand what sales & use, and combined federal/state program compliance risks face your organization and how you should respond. Identify state tax rules that your organization's staff needs to understand prior to filing season.

After this session, you will be able to:

  • Identify state tax rules that your organization's staff needs to understand
  • Determine which states have jurisdiction over a given organization's business operations.
  • Compare and contrast the combined federal state filing programs benefits and shortcomings
  • Analyze particular state 1099 reporting requirements in detail.
  • Much more....
  1. Introduction
  2. Your Approach - Determining Jurisdiction  00:01:12
  3. Your Approach - Different States and Changes 00:20:15
  4. Your Approach - The Tax Gap and Nexus 00:40:09
  5. Your Approach - Nexus and Jurisdictions 00:42:00
  6. Your Approach - Nexus and Properties 00:54:43
  7. California State Reporting Example  - Resident Reportable Income 01:02:17
  8. California State Reporting Example  - NonResident Reportable Income 01:04:20
  9. California State Reporting Example  - IRS Filing 01:06:34
  10. New Jersey State Reporting Example 01:10:11
  11. Maryland State Reporting Example 01:11:22
  12. State and Local Reporting Checklist 01:13:53
  13. State/City Reporting Pennsylvania Example 01:15:39
  14. State/City Reporting Pennsylvania Example - Filing 01:18:24
  15. State/City Reporting Philadelphia/LA Example  01:20:08
  16. Finally: What’s New in State Employee Versus 1099 Contractor Issues 01:24:06
  17. Protect Yourself 01:32:41
  18. Presentation Closing 01:40:45

  • 1099-NEC 00:06:19
  • Dividends 01:20:26
  • E-file 00:21:51
  • Form 1099 MISC 00:06:15
  • Form 1099 R 00:06:17
  • Form W-2 00:06:41
  • Independent Contractor 01:24:37, 01:25:45
  • Nexus 00:04:40
  • Penalty 01:23:44
  • Unclaimed Property 00:41:33

1099-NEC: In the context of 1099 tax filing, NEC stands for “Nonemployee Compensation” (the first letters of the three words None, Employee and Compensation). Most tax payers recognize NEC as box 7 on Form 1099-MISC. NEC is used to report income paid to independent-contractors / the-self-employed (referred to as 1099 employees for simplification purposes). So, while employers report income that gets paid to employees on Box 1 (Wages, tips, other compensation) of the W2 form, payers report income that gets paid to none-employees on Box 7 (NEC) of the 1099-MISC form. As an individual if you received form 1099-MISC instead of Form W-2 then the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.

Dividends: A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders.

E-file: An electronic filing system that allows individuals and businesses to file their income tax returns over the internet.

Form 1099-MISC: The Form 1099-MISC is an Internal Revenue Service (IRS) tax return document used to report miscellaneous payment?s made to nonemployee individuals, such as independent contractors, during the calendar year. (www.shrm.org)

Form 1099-R: Form 1099-R is a tax form from the Internal Revenue Service (IRS) for reporting distributions from annuities, profit-sharing plans, retirement plans, IRAs, insurance contracts, or pensions.

Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)

Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)

Nexus: The term nexus is used in tax law to describe a situation in which a business has a "nexus" or tax presence in a particular state or states. A nexus is basically a connection between a taxing jurisdiction, like a state, and an entity like a business that must collect or pay the tax.

Penalty: A fine charged by the IRS for paying taxes after the annual deadline or for filing a tax return late.

Unclaimed Property: Unclaimed property (sometimes referred to as abandoned) refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for one year or a longer period. Common forms of unclaimed property include savings or checking accounts, stocks, uncashed dividends or payroll checks, refunds, traveler's checks, trust distributions, unredeemed money orders or gift certificates (in some states), insurance payments or refunds and life insurance policies, annuities, certificates of deposit, customer overpayments, utility security deposits, mineral royalty payments, and contents of safe deposit boxes.


Guest Speaker

  • Steven Mercatante

CPE Credit

Continuing Professional Education

Aurora Training Advantage is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

For more information regarding administrative policies such as complaint and refund, and cancellation please contact our offices at 407-542-4317 or training@auroratrainingadvantage.com.

You must answer all questions during the webinar, view the recording completely and pass the test at the end with 70% correct answers to receive CPE credit.

ATATX Credit

Aurora Training Advantage is offering continuing education points designed to recognize dedication to training and excellence in accounting.

IRS Credit

Preparer Tax Identification Number