How recent Quickbooks Online changes may affect you

Intuit has recently announced significant updates that could affect how you manage the distribution of W-2 and 1099 tax forms.

Changes to W2 Form Distribution

Starting in January 2025, Intuit will no longer include the printing and mailing of W-2 tax forms as part of your QuickBooks Online Payroll subscription. Instead, if you choose to have Intuit handle the printing and mailing of W-2s to your employees, a fee of $4 per employee will be applied.

This change means that businesses accustomed to Intuit automatically managing the physical distribution of W-2 forms will need to reconsider their approach to year-end tax form handling. The additional costs could accumulate, especially for companies with a larger workforce, potentially affecting your budget for the upcoming tax season.

It's important to note that electronic filing and submission of W-2s to the IRS will continue to be included in your subscription. However, the physical printing and mailing to employees will incur the new fee unless alternative steps are taken.

To navigate this change, you have several options:

• Encourage Electronic W-2s Through QuickBooks Workforce - Electronic copies are included in your QuickBooks Online Payroll subscription at no extra cost. Employees can conveniently access their forms at any time, and you eliminate the need to manage physical documents.
• Print and Mail W-2s Yourself - If electronic distribution isn't feasible for all your employees, you have the option to handle the printing and mailing of W-2 forms internally. By choosing to print and mail the forms yourself, you avoid the $4 per employee fee from Intuit. However, consider the costs associated with printing, postage, and administrative time when evaluating this option.
• Opt to Pay Intuit's Fee - This option requires no changes to your current processes, ensuring a seamless transition without additional administrative burdens.

To avoid automatic charges, it's essential to update your W-2 delivery preferences before January 3, 2025. If no action is taken, Intuit will default to printing and mailing W-2s to your employees and apply the associated fees.

Changes to 1099 Form Distribution

Similar to the changes with W-2 forms, Intuit will also cease including the printing and mailing of 1099 tax forms as part of your subscription, effective January 2025 for the 2024 tax season. This applies to both 1099-NEC and 1099-MISC forms. A fee of $4 per form will be charged if you opt to have Intuit handle the printing and mailing to your contractors and vendors.

You have several pathways to manage the distribution of 1099 forms without incurring unnecessary fees:

• Ensure Electronic Delivery by Updating Vendor Information
• Print and Mail 1099s Yourself
• Allow Intuit to Print and Mail for a Fee

If you need assistance navigating these changes or determining the best course of action for your business, our team at Atchley & Associates, LLP is here to support you.