New E-File Rules for W-2s and 1099s

November 22, 2023

More businesses will have to electronically file 2023 W-2s and 1099s due to a change made by the IRS. Treasury Decision (TD) 9972 amends filing rules for electronic filing by reducing the limit to 10 combined returns for the 2023 tax year. Prior to the amendment, the threshold was 250 returns of a single type.


Does the change affect your business?
If your business issues 10 or more W-2 and 1099 forms combined, they will have to be electronically filed with the IRS and the Social Security Administration. Penalties for not e-filing are up to $300 per form.


SJHL can help:
We have a team dedicated to helping businesses process 1099s*. If you would like to engage our 1099 processing team, please reach out as soon as possible to


*Your W-2s should be electronically filed through your payroll software.