- Serving Taxpayers Since 1993
- File In Person or Fully Virtual
- Year-Round Help, Not Just Tax Season
- Nonprofit & Church Specialists
- Flexible Refund & Payment Options
If you paid anyone for work this year, January brings paperwork. For a Katy business, that means W-2s for employees and 1099-NEC forms for contractors, all due to the workers and the government by January 31. Texas employers get one break: there is no state income tax, so your W-2s carry no state withholding. The federal side still has to be right. We prepare the forms, get copies to your workers and file them for you.
When You Need W-2 and 1099 Preparation
You need W-2s if anyone was on your payroll during the year, even for a few weeks. You need a 1099-NEC for each person or unincorporated business you paid for services above the reporting line. It is also time to call when an employee spots an error on last year’s W-2, a penalty letter mentions a form that never got filed, or your contractor folder has no tax ID in it.
Trucking along I-10 is a good example. Many carriers between Katy and Brookshire pay owner-operators by the load. Those drivers often get a 1099-NEC, while company drivers get a W-2. If the line between the two is blurry, year-end is when it shows. We look at how each driver works before we pick the form.
New Texans are another case. If you moved your business here from another state this year, W-2s may show state wages and withholding for the months you paid people there, and none for the months after. Getting that split right helps your workers file in both places.
Our W-2 and 1099 Preparation Process
Our work begins before the holidays. We ask each contractor without a W-9 on file to send one, because tracking down a tax ID during the January rush wastes days. Once December’s final payroll is done, we add up the year’s wages and tax and compare them to your four quarterly 941s. When those agree, we build the W-2s, the W-3 transmittal and the 1099-NECs.
Employees and contractors receive their copies no later than January 31. That same date is the deadline for sending the W-2 set to the SSA and the 1099-NEC set to the IRS. If you file 10 or more information returns in total, counting W-2s and 1099s together, the IRS requires you to file them electronically. The IRS keeps every deadline on its list of employment tax due dates.
The New 1099-NEC Threshold
The reporting line moved. Before 2026, you sent a 1099-NEC once you paid someone six hundred dollars in a year. For money paid during 2026, the line jumped to two thousand dollars, and later years follow IRS updates. Payments to most corporations still do not need a 1099, though payments for legal services do. The IRS covers the details on its page about which payments need a Form 1099.
W-2 and 1099 Preparation Cost in Katy
Price follows volume. A handful of forms for a business already on our payroll takes little time, since the numbers are on hand. A long contractor list, a stack of missing W-9s, totals that disagree with your 941s, or fixes to earlier years take more. We quote the fee first.
Why Choose Us for W-2 and 1099 Preparation
Since 1993 we have prepared the personal returns that depend on these forms, so we know what happens when a W-2 or 1099 is off: the worker’s return stalls and the business gets the letter. That makes us careful at the source. Our Kingsland Boulevard office stays open six days a week through the January crunch, and the whole job can also be done online.
Year-end forms wrap up year-round payroll and new employer setup in Katy.
Common Questions
Do Texas employers file W-2s with the state?
No. Texas has no state income tax, so there is no state W-2 filing. Your W-2s are filed with the Social Security Administration only, and your TWC wage reports already cover the state unemployment tax.
A contractor will not give me a W-9. What now?
Ask in writing and keep a copy. If you still do not get a tax ID, you may have to hold back federal backup withholding from future payments. We can walk you through it before the next payment goes out.