Forms 1099 and W-2 for Tax Year 2025

The 2026 New Year brings your business fresh opportunities. It also demands annual compliance and information reporting. January requires your accounting department to prepare a handful of reports that affect your employees, vendors, and your friends at the IRS.

Here is a recap of the 2025 calendar year information reporting that you may be responsible for issuing soon.

Forms W-2 to Employees

Employers need to issue Forms W-2 to all employees receiving wages during the tax year. In addition, the fourth quarter and annual payroll tax returns are due. These are prepared by the person or company who processes your payroll during the year. The recipients must receive their W-2’s by January 31,2026. The IRS requires filing by January 31, 2026 as well.

Forms 1099 to Vendors and Independent Contractors

Generally, any person or entity engaged in a trade or business (including nonprofit organizations, trusts, estates, and government agencies) must file Forms 1099-MISC and/or 1099-NEC if, in the course of business, they make certain types of payments to non-corporate recipients (and, in some cases, to corporations) totaling at least the applicable threshold during the calendar year. Personal payments are not reportable.

The most common types of forms 1099 that motorcoach companies need to be aware of are:

  • Form 1099-MISC
  • Form 1099-NEC

Forms 1099-MISC are issued for certain payments and/or bartering transactions of at least $600.

1. Paid to individuals or entities not taxed as corporations, including:

  • Rents (Box 1)
  • Prizes and awards (Box 3)
  • Other income (Box 3)
  • Deceased Employee Wages (Box 3)

2. Paid to individuals or any entities including those taxed as corporations, including:

  • Medical and healthcare payments (NOT health insurance premiums) (Box 6)
  • Payments to an attorney even if taxed as a corporation (Box 10)

3. Direct sales of at least $5,000 of consumer products for resale.

Do NOT report on Form 1099-MISC:

  • Payments to corporations (with exceptions as above)
  • Payments for merchandise, telegrams, telephone, freight, storage, and similar items
  • Wages to employees (report on Form W-2)
  • Payments to tax-exempt organizations, governments, or most corporations (with exceptions)
  • Personal payments

Due dates:

  • Forms 1099-MISC are required dates are as follows:
    • To the recipient, by January 31, 2026
    • To the IRS, by February 28, 2026 filed by paper
    • To the IRS, by March 31, 2026 filed electronically

Forms 1099-NEC are issued for certain payments and/or bartering transactions of at least $600, paid to individuals or entities not taxed as corporations, for services performed by non-employees with no exclusion for parts and materials.

  • Services performed by someone who is not your employee (including parts and materials)
  • Fees, commissions, prizes, and awards for services
  • Payments to attorneys for legal services (must be reported in Box 1 even if the entity is a corporation)
  • Directors’ fees
  • Payments to nonemployee entertainers
  • Other forms of nonemployee compensation

Do NOT report on Form 1099-NEC:

  • Payments for merchandise, rent, or other items not considered compensation for services
  • Wages to employees (report on Form W-2)
  • Payments to tax-exempt organizations, governments, or most corporations
  • Payments for personal (non-business) services [2].

Due dates:

  • Forms 1099-NEC are required dates are as follows:
    • To the recipient, by January 31, 2026
    • To the IRS, by January 31, 2026 filed by paper or electronically

Forms 1099K are issued by credit card processors and payment service providers, such as Square and Venmo. These credit card processors and service providers are responsible for the reporting compliance. Do not report these payments on forms 1099-MISC or 1099-NEC.

Planning Opportunity: Consider paying vendors and independent contractors by credit card or through payment service providers to reduce your business’s Form 1099 filing requirements.

Note: The IRS has several different documents that provide guidance for Forms 1099. What we have presented here is the most common uses that effect the Motorcoach Operator. We recommend that you discuss the final preparation with your CPA before submitting your Forms 1099.

Written by Tracy Fickett, BUSBooks, LLC

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