A Complete Guide on Common Tax Forms: Employers Need to Know

For employers, managing tax responsibilities is an unavoidable yet crucial part of running a successful business. Beyond ensuring compliance with the Internal Revenue Service (IRS) and avoiding costly penalties, understanding tax forms can help streamline processes, improve payroll efficiency, and build trust with employees.

At Online Recruiters Directory, we specialize in the placement of recruiting firms and other employment areas, including tax considerations. In this regard, we have compiled a comprehensive list of all essential tax forms employers need to know in 2025. This is with submission deadlines, practical tips, and key details to ensure compliance and efficiency.

1. Form W-2: Wage and Tax Statement

Form 1099-MISC is used to report payments made during the year for services or activities not covered under other specific 1099 forms. This includes payments such as rent, legal settlements, and certain non-employee compensation (if not already reported on Form 1099-NEC).

Key Deadlines for 2025 (Tax Year 2024):

• Employee Copy: Employers must distribute Form W-2 to employees by January 31, 2025.
• Filing with the SSA: Whether submitting electronically or by paper, employers must file Form W-2 along with Form W-3 (summary transmittal) with the Social Security Administration by January 31, 2025. Unlike previous years, there is no extended deadline for paper filings.

Key Requirements:

To prepare and file Form W-2, you need:

• • Business information, including Employer Identification Number (EIN).
  • Employee details such as name, Social Security Number (SSN), and address.
  • Comprehensive earnings and tax withholding data, including wages, tips, benefits, and retirement contributions.

Ensure accuracy to avoid penalties, as incorrect information can result in rejections or fines.

2. Form 1099-MISC: Miscellaneous Income

Form 1099-MISC is used to report payments made during the year for services or activities not covered under other specific 1099 forms. This includes payments such as rent, legal settlements, and certain non-employee compensation (if not already reported on Form 1099-NEC).

Key Deadlines for 2025 (Tax Year 2024):

• Recipient Copy Deadline: January 31, 2025
• Filing Deadline with IRS:
  – Paper submissions: February 28, 2025
  – Electronic submissions: March 31, 2025

Reporting Requirements:

• • Report payments of $600 or more for rent, prizes, awards, and other miscellaneous income.
  • Report payments made to individuals, partnerships, or LLCs (excluding C or S corporations unless exceptions apply).

Do not use this form to report employee wages (use Form W-2), merchandise payments, or payments made for personal purposes.

3. Form 1099-NEC: Non-employee Compensation

Form 1099-NEC is used by businesses to report payments of $600 or more made to independent contractors and other non-employees for services rendered. Unlike Form 1099-MISC, which covers various types of miscellaneous income, Form 1099-NEC is exclusively for non-employee compensation.

Key Deadlines for 2025 (Tax Year 2024):

• Recipient Copy Deadline: January 31, 2025
• IRS Filing Deadline (Both Paper and Electronic): January 31, 2025

 

Who Needs to File:

Employers or businesses must file Form 1099-NEC if they meet the following conditions:

• Payments made to an individual or business (excluding corporations in most cases).
• Total payments amount to $600 or more in the calendar year.
• Payments were for services (not products, rents, or personal expenses).
• Payments were made to a non-employee (e.g., freelancer, contractor).

 

Information Requirements:

The form includes key fields such as:

• • The payer’s and recipient’s name, address, and Taxpayer Identification Number (TIN).
  • The total non-employee compensation paid during the year.
  • Federal and state income tax withheld, if applicable.

 

Key Notes:

• Payments for personal services, like hiring a contractor for home renovations, do not require reporting on Form 1099-NEC.
• Ensure accurate Taxpayer Identification Numbers (TINs) to avoid penalties.

4. Form W-4: Employee’s Withholding Certificate

Form W-4 is an essential document used by employees to inform their employers of how much federal income tax to withhold from their paychecks. The information provided on the form is used to calculate the correct amount of tax withholding based on factors such as filing status, dependents, and additional adjustments like deductions or extra withholding.

Key Deadlines for 2025 (Tax Year 2024):

• Form W-4 must be filled out by employees upon starting a new job, but it can also be updated throughout the year if their personal or financial situation changes.
• Employers are not required to submit the form to the IRS but must retain it for their records.

 

Who Needs to File:

• New employees should complete Form W-4 when they begin their employment.
• Existing employees should update Form W-4 if there are significant life changes, such as marriage, the birth of a child, or a change in income.
• Employers are responsible for ensuring that accurate withholding is based on the completed Form W-4.

 

Information Requirements:

The form asks for information such as:

• • Personal Information: Employee’s name, address, filing status (single, married, etc.), and social security number.
  • Dependents: Number of children or dependents eligible for tax credits.
  • Additional Adjustments: Any extra withholding or adjustments related to other income, deductions, or credits.
  • Other Adjustments: If the employee prefers a specific withholding amount, such as withholding an additional flat amount from each paycheck.

5. Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return

Form 940 is used by employers to report their federal unemployment tax (FUTA) obligations. The FUTA tax is paid by employers to fund unemployment benefits for workers who lose their jobs. This form calculates the total FUTA tax owed by the employer based on the wages paid to employees. It is distinct from state unemployment taxes, though some states may require their own filings as well.

Key Deadlines for 2025 (Tax Year 2024):

• Annual Filing Deadline: Form 940 must be filed by January 31, 2025, for the prior calendar year (2024).
• If all FUTA taxes have been deposited timely and in full, the filing deadline is extended to February 10, 2025.

 

Who Needs to File:

Employers who paid $1,500 or more in wages to employees in any calendar quarter of the previous year or employed at least one person for 20 weeks or more during the year are required to file Form 940.

Information Required:

Form 940 includes the following key details:

• • Employer Information: Name, address, and Employer Identification Number (EIN).
  • Total Wages Paid: Total wages subject to FUTA tax.
  • FUTA Tax Calculation: The form calculates the tax based on 6% of the first $7,000 of each employee’s wages, with potential state unemployment tax credits reducing the rate to 0.6% in states with approved state unemployment programs.
  • Payments and Adjustments: Information about any adjustments made for prior year filings or credits applied.

6. Form 941: Employer’s Quarterly Federal Tax Return

Form 941 is used by employers to report the quarterly federal income tax, Social Security, and Medicare tax withholdings from employees’ wages. It also includes the employer’s portion of Social Security and Medicare taxes. This form helps ensure that businesses comply with their payroll tax responsibilities and accurately report tax liabilities to the IRS.

Key Deadlines for 2025 (Tax Year 2024):

Form 941 must be filed quarterly, with deadlines as follows:

• First Quarter (January – March): Due by April 30, 2025.
• Second Quarter (April – June): Due by July 31, 2025.
• Third Quarter (July – September): Due by October 31, 2025.
• Fourth Quarter (October – December): Due by January 31, 2026.

Employers who fail to meet the deadline for filing Form 941 may face penalties and interest.

Who Needs to File:

Employers who withhold income taxes, Social Security, or Medicare taxes from their employees must file Form 941. This includes businesses of all sizes that employ individuals, whether on a full-time, part-time, or temporary basis.

Information Required:

Form 941 includes several sections that need to be filled out:

• • Employer Information: Name, address, Employer Identification Number (EIN), and contact details.
  • Wages Paid: Total wages paid to employees during the quarter.
  • Federal Income Tax Withheld: The amount of federal income tax withheld from employee wages.
  • Social Security and Medicare Taxes Withheld: The amount of Social Security and Medicare taxes withheld from employees and the employer’s contribution.
  • Adjustments and Credits: Adjustments to previous filings or tax credits, such as for the Employee Retention Credit (if applicable).
  • Tax Liability Calculation: This section calculates the total taxes due, factoring in the withheld amounts and the employer’s share of taxes.

7. Form 1040: US Individual Income Tax Return

Form 1040 is the standard tax form used by U.S. individuals to file their annual income tax returns with the IRS. Although primarily used by individuals, it is crucial for employers to understand its role since it is tied to the tax obligations of their employees. The form is used to report income, calculate taxes owed or refunded, and claim various deductions and credits. Employers often assist employees by providing the necessary documentation (such as Form W-2 or Form 1099) to accurately complete this form.

Key Deadlines for 2025 (Tax Year 2024):

• Filing Deadline: The typical deadline for filing Form 1040 is April 15, 2025. If this date falls on a weekend or holiday, the deadline is extended to the next business day.
• Extension: Taxpayers can request a six-month extension, which pushes the filing deadline to October 15, 2025. However, this extension only applies to the filing deadline, not the payment deadline. Any taxes owed must still be paid by the original due date (April 15) to avoid penalties and interest.

Who Needs to File:

Form 1040 must be filed by all U.S. citizens and residents whose gross income exceeds certain thresholds. These thresholds vary based on filing status, age, and type of income. Even those who are not required to file may do so to claim a refund for overpaid taxes or to qualify for tax credits.

Information Required:

Form 1040 includes several sections that require various financial and personal details:

• • Personal Information: Name, address, Social Security Number (SSN), filing status (single, married, head of household, etc.), and dependents.
  • Income Reporting: Total income from various sources, including wages (Form W-2), interest, dividends, self-employment income, rental income, etc.
  • Deductions and Adjustments: Standard deductions, itemized deductions (such as medical expenses, mortgage interest, charitable contributions), and retirement plan contributions.
  • Tax Calculation: After calculating total income and allowable deductions, the form helps determine the amount of tax owed or the refund due.
  • Tax Credits: Section to apply for tax credits (e.g., Child Tax Credit, Earned Income Credit) to reduce tax liability.

8. Form I-9: Employment Eligibility Verification

The Form I-9 is a mandatory form used by employers to verify the identity and employment authorization of individuals hired for employment in the United States. All employers must ensure that employees complete this form at the time of hire to comply with federal regulations regarding work eligibility.

The form is crucial for maintaining lawful employment practices, ensuring that employers hire only those who are legally authorized to work in the U.S., and for avoiding penalties associated with hiring unauthorized workers.

Filling Deadline:

There is no specific filing deadline for Form I-9, as it does not need to be submitted to the U.S. Citizenship and Immigration Services (USCIS) or another government agency. However, employers must complete and retain the form within three business days of the employee’s first day of work. Additionally, the form must be updated in cases of employee status changes, such as extensions of work authorization.

Information Required:

Form I-9 requires two main sections to be completed:

Section 1 (Employee Information and Attestation):
The employee must fill out personal information, such as their name, address, date of birth, and citizenship status (whether they are a U.S. citizen, lawful permanent resident, or a noncitizen national). It also requires employees to sign and attest that the information provided is accurate.

Section 2 (Employer Review and Verification):
The employer must examine the employee’s documentation that proves their identity and eligibility to work. Plus, the employer should record the document details in the I-9 form and verify the authenticity of the documents presented. Acceptable documents can include a U.S. passport, permanent resident card, or employment authorization card, as listed on the form’s instructions.

Employers must retain the completed Form I-9 for all employees, and the form must be made available for inspection by authorized government agencies, such as the Department of Homeland Security (DHS), U.S. Immigration and Customs Enforcement (ICE), or the Department of Labor (DOL), upon request.

9. Form W-9: Request for Taxpayer Identification Number and Certification

Form W-9 is used by individuals or entities to provide their taxpayer identification number (TIN) to businesses or organizations requesting it. This form is primarily used for reporting income paid to independent contractors, freelancers, and other non-employees. It is also required for certain financial transactions where the IRS needs to track payments.

Filing Deadline:

There is no specific filing deadline for Form W-9, as it is typically submitted when requested by a business or organization before payments are made. The recipient must submit the completed form as soon as possible to ensure the payer can report the correct information to the IRS. This form is not filed with the IRS directly but is maintained by the requesting party for their records.

Information Required:

Form W-9 requires the following information:

• 1. Name: The individual or entity’s legal name.
  2. Business Name (if applicable): For individuals operating under a business name or doing business as (DBA).
  3. Taxpayer Identification Number (TIN): This could be the individual’s Social Security Number (SSN) or an Employer Identification Number (EIN) for businesses.
  4. Entity Type: Whether the form filer is an individual, corporation, partnership, or other legal entity.
  5. Certification: The form must be signed by the individual or business owner, certifying the accuracy of the provided information.

Key Considerations:

• Form W-9 is often requested when a company needs to report income paid to contractors or vendors using forms such as the 1099 series.
• If the taxpayer identification information is incorrect or not provided, the payer is required to withhold backup withholding at a higher rate on payments made to the individual or business.
• It’s important to update Form W-9 when any changes occur, such as a change in business structure, name, or taxpayer identification number.

Conclusion

Navigating the world of tax forms as an employer can be challenging, but understanding the purpose and requirements of common tax forms can help streamline the process. By familiarizing yourself with the common tax forms in the employment industry. In this case, you can ensure compliance with IRS regulations and avoid costly penalties and fines. Besides our guidance above, consult with a tax professional or utilize tax preparation software. This will help you gain more insights and assistance in accurately completing and filing these forms.