What is w-2 and 1099-nec support?
Year-end payee data reconciled through the year, not reconstructed in January.
W-2 and 1099-NEC preparation looks like a January task because the deadline lands in January — both forms are due to recipients and to the government by January 31. But the work that determines whether that date is calm or chaotic happens in the eleven months before it. This service isn't running payroll and it isn't building the contractor ledger from scratch; it's the reconciliation layer that turns whatever the year produced — payroll register entries, contractor payment records, benefit deductions, mid-year corrections — into a set of numbers that tie out and are ready to export.
Every W-2 box is a rollup of numbers that were posted somewhere else first: Box 1 wages come from the payroll register net of pre-tax deductions, Box 3 and Box 5 (Social Security and Medicare wages) come from a different, narrower calculation, and Box 12 codes (D for 401(k) deferrals, W for HSA contributions, DD for reported health coverage cost) each pull from a separate plan record. When those feeds are reconciled to the general ledger pay period by pay period, the December close produces a W-2 draft instead of a reconstruction project. When they aren't, January becomes an audit of the whole year compressed into two weeks.
Who files this
Your CPA or Reporting Agent files or lodges this. We prepare, reconcile and support the numbers behind it; the submission itself is theirs, every time.
Why it matters
| Without a system | With CapEasy |
|---|---|
| People paid late or incorrectly | Pay runs on schedule, every cycle |
| Payroll journals that never tie to the bank | Payroll ledger that reconciles |
| Year-end reconciliation done from scratch | Your filer gets clean numbers, on time |
What we need from you
People
- Employee master data
- Employment contracts
- Salary structure
- Benefits and deductions
- Start and leave dates
Each cycle
- Attendance and overtime
- Leave records
- Bonus and commission
- Reimbursements
System
- Payroll software access
- Prior payroll reports
- Registration references held by your filer
How it runs, step by step
- Setup
- Employee onboarding in the payroll system
- Salary structure configuration
- Benefits and deductions setup
- Each pay run
- Gross-to-net calculation in the system
- Overtime and bonus adjustments
- Deductions processing
- Booking & reconciliation
- Payroll journal entries
- Payroll ledger reconciliation
- Liability reconciliation
Who does what
| Your CapEasy team | W-2 and 1099-NEC support, the reconciliations and reporting behind it, and the questions list that keeps it honest. |
| Your CPA or enrolled agent | Everything that carries a licence in United States — rendered exactly as written: issue compilation, review or audit reports — those are restricted to licensed cpa firms. |
| You | One conversation with one named person, and the decisions that are genuinely yours. |
W-2 and 1099-NEC support in United States
January 31 is one deadline for two different forms
Form W-2 must be furnished to employees and filed with the Social Security Administration by January 31 following the tax year. Form 1099-NEC carries the same January 31 date for both the recipient copy and the IRS filing. Because the deadline is identical, a business running both processes separately is doing the same crunch twice instead of once — which is the case for combining them into a single year-end export.
Box totals have to match the payroll register, not just look right
Box 1 (taxable wages), Box 3 (Social Security wages, capped at the annual wage base), and Box 5 (Medicare wages, uncapped) are each calculated differently from gross pay, and each has to reconcile to a specific payroll register total before a W-2 draft is accurate. A mismatch between the W-2 aggregate and the payroll register — or between the W-2 total and what was reported on quarterly Form 941s during the year — is exactly the kind of discrepancy that draws an SSA or IRS notice months later.
Corrections belong to the filer: Form W-2c
When a W-2 already issued needs correcting — a Social Security number typo, a wage amount that changes after a late payroll adjustment, a Box 12 code entered wrong — the fix is Form W-2c, filed by the employer or their payroll provider along with a corrected SSA transmittal. We don't prepare or file W-2c corrections. What we do is run the exception checks — SSN-to-name matches, box tie-outs, duplicate or missing records — before the original form goes out, which is the step that determines whether a W-2c is ever needed.
1099-NEC packaging still needs Form 1096 for paper filing
A business filing 1099-NEC forms on paper rather than electronically must submit Form 1096 as the transmittal summary to the IRS. Electronic filers submit through the IRS's electronic system instead and skip the 1096. Which path applies is a filing decision for your CPA or Reporting Agent — our part is making sure the underlying 1099-NEC data is threshold-checked and clean before either filing method touches it.
What your CPA or enrolled agent receives from us
- A W-2 draft set with Box 1, 3, 5, and 12 pre-calculated and reconciled to the payroll register for every pay period in the year, not estimated from annual totals
- A GL tie-out schedule matching aggregate W-2 wage and withholding totals against the payroll liability and expense accounts they were posted to
- Multi-state wage and withholding splits for every employee who worked in more than one state, tied to the pay period where the work occurred
- Retirement and benefits reconciliation — 401(k) deferrals, HSA contributions, and other Box 12-coded amounts matched against the plan provider's year-end statements
- 1099-NEC totals validated against the $600 threshold using the year's reconciled contractor ledger, flagged for any vendor whose total moved after a late invoice posted
- A pre-filing exception report: SSN-to-legal-name mismatches, missing addresses, duplicate employee or vendor records, and any box that fails its GL tie-out
