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We are pleased to announce that all businesses and individuals can now file W-2 forms with Zenwork. If you previously received a letter from the Social Security Administration (SSA) regarding electronic wage report submissions, please note that the issue has been fully resolved. Our systems are fully operational, and we are processing W-2 and W-2C filings without any disruptions.
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Tools
The threshold for mandatory e-filing has been lowered by the IRS. Any payer submitting a total of 10 or more information returns, whether it’s 1099-NEC, 1099-MISC, W-2, or others, must file them digitally using reliable 1099-NEC e-file software.
Key Deadlines for 2025 Tax Year
Note: Beginning in tax year 2026, the threshold increases to $2,000. The threshold adjusts annually for inflation in tax year 2027 and future years thereafter.
Penalties for Late or Incorrect Filing
With penalties stacking quickly, choosing the right e-file software isn’t just about convenience, it’s about protecting a business from unnecessary fines.
Why Software Matters
The right software does more than transmit forms. At Zenwork, we often see payers underestimate the number of steps between “spreadsheet” and “IRS-accepted.” Running bulk TIN checks in advance, validating addresses, and auto-creating state XML files prevent last-minute rejections. The payoff isn’t just compliance; it’s fewer January fire drills and less risk of penalties stacking up.
This guide compares the seven leading 1099-NEC filing platforms for 2025, starting with Tax1099 by Zenwork.
When payers compare 1099-NEC filing software, these are usually the areas that make the biggest difference:
Form coverage – You will rarely be filing just NECs. Most businesses end up needing 1099-MISC, DIV, INT, W-2, and sometimes other forms, all in one place. Make sure whatever platform you choose can handle your full range of filing requirements without forcing you to juggle multiple systems.
Getting your data in – January is stressful enough without wrestling with clunky upload processes. Look for platforms that work with Excel and CSV files (because that’s probably how your data lives right now), integrate directly with QuickBooks or Xero, and offer API or SFTP options if you’re processing large volumes. The easier it is to get your information into the system, the more time you’ll save when deadlines are breathing down your neck.
State filing headaches – Here’s something that catches people off guard: not every state just takes the federal data from the IRS. California, Pennsylvania, Oregon, New Jersey, Michigan, and Louisiana all want their own XML files submitted separately. If your platform handles this automatically, you’ll avoid hours of manual formatting and the stress of tracking different state deadlines.
Catching mistakes early – Features like TIN Matching, duplicate detection, and address validation might not sound exciting, but they’re lifesavers. There’s nothing worse than getting rejection notices from the IRS because of a typo in a taxpayer ID or an old address. Tools that spot these problems before you file can save you from scrambling to fix everything during the busiest time of year.
Security that matters – You’re dealing with sensitive contractor data, so security cannot be an afterthought. Look for SOC 2 certification, data encryption for data at rest and in transit, and multifactor authentication. A data breach can be financially devastating and permanently damage your reputation and credibility.
Pricing and getting help – Clear per-form pricing is important, but so is having someone to call when things go sideways. During the January filing crunch, quick access to real support (not just email tickets) can be the difference between meeting your deadline and explaining to the IRS why you’re late.
Together, these factors cover both compliance obligations and the everyday usability that helps payers get filings out on time without extra stress.
Built by Zenwork, Tax1099 has become the choice of 1099-NEC filing software for more than 40,000 payers, ranging from small property managers to national gig platforms. It is designed to take on complex IRS requirements while still being approachable for smaller teams.
What makes Tax1099 different is how it works with your existing processes rather than forcing you to change everything. You’re not stuck with just one way to get your data in. You can drop in an Excel file and you’re done. Or you can have your QuickBooks, Xero, or NetSuite systems talking directly to the platform. If you’re handling thousands of forms, you can set up SFTP transfers or use the REST API. The point is finding what works for your team.
After you upload your data, the system gets to work behind the scenes. It checks TIN numbers against the IRS database in real-time, validates addresses through USPS, and flags any duplicates it finds. These might seem like small details, but they’re the difference between smooth filing and getting rejection notices from the IRS in January when you’re already swamped.
State filing used to be a nightmare because every state wants things done differently. Most states will accept the federal data through the IRS feed, but California, Pennsylvania, Oregon, New Jersey, Michigan, and Louisiana still want their own XML files. Tax1099 handles all of that automatically, no more manually formatting state files or wondering if you missed a deadline.
Getting forms to contractors is pretty flexible too. They can log into a branded portal to grab their documents, or you can have physical copies mailed via First-Class mail. Everything gets archived digitally for seven years, and the security setup includes SOC 2 Type II certification, ISO 27001 compliance, AES-256 encryption, and multifactor authentication. Your contractor data stays protected throughout the entire process.
Support is available 24/7 through chat and phone. The pricing scales down for bulk filers, you can get below a dollar per form if you’re processing enough volume.
Here’s how it works in practice: There’s a freelancer marketplace that pushes NEC payment data through the API daily. The system processes everything overnight and files with both the IRS and state agencies automatically. Meanwhile, a property management company uploads one Excel file and completes their entire filing workflow, federal forms, state submissions, contractor deliveries, and record archiving, in under ten minutes.
Instances like these explain why companies looking for a single, secure filing solution choose Tax1099.
Track1099, acquired by Avalara, appeals to tech-savvy teams who like API-first systems.
Zenwork insight: While its API power makes Track1099 attractive for large developer teams, many SMB payers find the per-form cost steep compared to simpler tools. In practice, payers without IT staff often underutilize these advanced integrations and end up paying for features they don’t need.
While Track1099 leans heavily on technical integrations, TaxBandits takes a different route by catering to service providers handling multiple clients.
TaxBandits, part of SPAN Enterprises, offers a multi-client dashboard that’s popular with accounting firms and service providers.
Zenwork insight: TaxBandits is well-suited for payroll bureaus, but some SMBs report a learning curve with its interface and role-based dashboards. For payers who only file a few hundred NECs, the tool can feel like “too much system for too little volume.”
Where TaxBandits emphasizes volume filing, Yearli focuses on flexibility through tiered plans.
Yearli gives payers flexibility through tiered plans – Core, Performance, and Premier, so they can choose the right level of features.
Zenwork insight: The tiered pricing model helps CPAs scale, but for SMBs, it can create confusion. A payer might start with Core, only to realize mid-season they actually need state XML uploads, forcing an upgrade. That upgrade cycle can add unexpected costs during the January crunch time.
Many CPAs and accounting firms adopt Yearli because its tiers map well to client growth, but SMBs may find the pricing shifts less predictable.
In contrast, 1099 Pro positions itself as an enterprise solution with both in-house and outsourced models.
1099 Pro is known for its enterprise-grade flexibility, offering desktop software, SaaS, and a full-service outsourcing bureau.
Zenwork insight: 1099 Pro is robust. Enterprises like the outsourcing option, but smaller payers may struggle with upfront licensing fees and IT setup if they try the desktop version.
For those on the other end of the spectrum, smaller businesses with only a few dozen NECs – ExpressE-File offers a lighter alternative.
ExpressE-File is built for small-volume filers who want a simple and affordable solution.
Zenwork insight: This tool works fine for very small businesses, but its lack of advanced compliance features (like TIN Matching) means payers run a higher risk of rejected filings. Many outgrow ExpressE-File once they cross even 100 forms.
FileYourTaxes.com, by contrast, has been around for decades and appeals to payers who prioritize longevity and simplicity over modern features.
FileYourTaxes.com has been an IRS-authorized e-file provider since 1999 and is valued for its simplicity.
Data entry: Key-in or CSV upload with on-screen validation.
Support: Phone help during business hours and video tutorials for guidance.
Pricing: Pay-as-you-go with no subscription or contracts.
Zenwork insight: The platform’s history is reassuring, but the user interface feels dated compared to modern solutions. For payers who want more automation (state filing, bulk imports, or integrations), FileYourTaxes.com may feel like stepping back a decade.
Filing success usually comes down to early preparation. Here’s a simple week-by-week roadmap most payers can follow:
Deadline reminder: Both contractor copies (Copy B) and the IRS submission (Copy A) are due by January 31, 2026 (IRS Instructions for Form 1099-NEC). Missing this date isn’t just an inconvenience, it can quickly lead to late penalties that add up per form.
Yes, the $600 reporting rule is still active. Non-employee compensation of $600 or more still has to be reported on Form 1099-NEC. One detail payers often overlook: if backup withholding applies, reporting is required even for smaller payments that are below the $600 threshold.
Tax1099, Track1099, and TaxBandits – offer real-time TIN Matching. For payers, this is more than just a technical add-on. Running the match up-front helps spot errors before they ever reach the IRS and can prevent the hassle of B-Notices or correction cycles down the road.
Yes, in some cases. States like CA, PA, OR, NJ, MI, and LA don’t rely on the IRS feed and require a separate NEC XML upload. Choosing a platform that handles this automatically can save hours of manual work.
Absolutely. All seven providers support multiple EINs under one login. This is particularly useful if you manage filings for different business entities or clients.
In case of a rejection, correct and re-submit within 30 days. If you act within that window, you stay in the lowest penalty tier ($60 per form).
No. IRS authorization simply means the provider is technically approved to transmit files. It doesn’t mean the IRS recommends one software over another.
Yes. Payers can e-file Form 8809 for a 30-day extension with the IRS. Keep in mind, though, this extension only applies to the IRS filing. The deadline to furnish contractor copies does not change.
Avoid costly fines and simplify 2025 compliance by choosing the most trusted 1099-NEC e-file software, Tax1099. Start Filing Forms 1099-NEC
Avoid costly fines and simplify 2025 compliance by choosing the most trusted 1099-NEC e-file software, Tax1099.