Are all employers required to e-File with the IRS?

There is a process provided by the IRS for electronically filing the federal tax returns. The e-File system includes many ways of paying and many types of e-filing. This depends on the form type being filed.

There is a big difference between sending payments and filing forms. E-file is used for filing forms. For making payments with your filing, you may or may not be able to use e-File. This again depends on the type of form being filed. If you want to make payments without filing any form then you can use the EFTPS system of IRS. Take a look at some of the different services we can offer to help with here.

Tax Forms You Can E-File

There are many options for e-Filing of forms. You can use e-File for;

Corporation and S corporation income tax returns can be filed by utilizing the modern e-File system.

Personal income tax returns can be filed as well. This includes Schedule K-1 for partners, LLC members, and S corporation owners. It also includes Schedule C for single-member LLCs and sole proprietors. These can be filed by using the IRS FreeFile System.

Information returns which constitute 1099 forms can be filed as well. This includes 1099-MISC for the non-employees. It can be filed by utilizing the IRS FIRE (Filing Information Returns Electronically) System.

Business employment tax returns can also be filed. This includes payroll taxes for form 941 and unemployment taxes for form 940. These can be filed via the modern e-File system. For making payments regarding employment tax you can use EFTPS system of IRS.

Use taxes and Excise taxes may also be filed by utilizing the e-File system.

For Filing and Paying Employment Taxes

Form 941, Form 944, and Form 940 are employment tax forms and these must be filed by utilizing the e-File program.

Which Employers need to e-file with IRS?

An employer must file electronically if it is going to file 250 or more forms. This requirement of 250 or more forms is separately applicable for each type of filed forms. It is also separately applicable for corrected and original returns.

For instance, if an employer is filing 500 1095-B forms and 100 1095-C forms then that employer must file the 1095-B forms electronically. But the employer is free to choose whether to file 1095-C electronically or not. Similarly, if an employer has 150 1095-C forms to correct then the employer is free to choose whether to file them electronically or not because they fall under the 250 threshold.

But if the 1095-C forms to be corrected were 340 then they must be electronically filed. However, regardless of the total number of forms, the IRS encourages all employers to file electronically. View the FAQ section of our website for more information.

The Key Takeaway

If you are an employer and you need professional help regarding filing forms via the e-File system then you should consider acquiring the services of Who’s Where. We specialize in providing innovative software solutions for ACA Reporting and Payroll Data Aggregation. This simplifies ACA Tracking and IRS Reporting while aggregating employee data from various payroll systems.