Choosing the right 1099-T outsourcing provider can make all the difference in how smoothly and effectively your institution runs its annual 1099 filings. Nelnet Campus Commerce and TAB Service Company have partnered since 2016 to streamline this process for institutions. Learn about their best practices for getting 1098-T files processed, delivered, and delivered quickly.
Choosing the Right 1099-T Outsourcing Provider
Experience
When you choose to outsource your 1099-T reporting, you want to make sure that you’re working with a company with the right experience. A good provider will have a wide range of financial backgrounds and be experienced in handling all aspects of the reporting process. You’ll also benefit from the expertise of a dedicated representative who will understand your company’s needs and be available to answer questions.
The right 1099-T outsourcing provider will be able to handle your business’s tax reporting needs in a way that will save you time and reduce stress for your team. You’ll also be able to focus on other areas of your business, such as W-2 filing and tax preparation.
You’ll need to be clear about your expectations from the contractor and their compensation and payment conditions. This includes everything from the scope of work to the ownership of the completed work. A formal agreement will help safeguard your company from labor misclassification and ensure that both sides understand the terms of the agreement.
Another important element of the contractor agreement is a non-disclosure agreement. This prevents the contractor from disclosing secret information about your business to anyone outside your organization. A contract can even include a non-compete clause, which prohibits the contractor from competing with you in a particular field for a set period of time.
Hiring independent contractors is a great option for many businesses. It helps them stay agile, fast, and competitive while lowering costs. However, relying on self-employed workers can create risk, especially with the rise of misclassification laws across the country. You’ll need to know how to classify your workers properly, which can be difficult without the assistance of a knowledgeable partner.
Reputation
The IRS and state tax agencies require that businesses that make a “reportable transaction” file an informational form. Among those forms is the 1098-T, which is the best way to measure how much a college student spent on qualified tuition and expenses during a given tax year. In addition to the requisite financial data, the form has a few more fancy tricks.
Choosing the right provider for your next 1099-T production run can be challenging, but it is well worth the effort. You should find a reputable firm with a proven track record and a willingness to do the right thing for you. You’ll want to ensure the provider has the capabilities, functionality, and a reasonable price tag. The best way to do this is by asking a few questions and weighing your options before you sign the dotted line.
Technology
The technology used to support a successful 1099-T processing operation is oftentimes the focus of much discussion amongst IT managers. One of the simplest ways for an IT department to improve productivity is by hiring staff that are knowledgeable about various technologies. While this is a great idea for larger enterprises, it is not always possible for small and midsized businesses to afford this type of staffing.
The best way to find out what sort of technology your outsourcing provider is using is to ask them about it. They will be more than happy to discuss the options available and answer any questions about them.
Choosing the right technology for your institution will help ensure you get the most out of your money. Not only will it help to improve the performance of your IT infrastructure, but it will also save you both time and money in the long run.
The best technology for your university will likely be a slickly designed software solution that will keep your student data safe and secure. In addition, a robust system will have features that will enable you to streamline your reporting process and allow your institution to meet all the IRS requirements for generating and delivering 1099-T files. The right system will significantly improve your institution’s efficiency and reduce the number of errors you will likely experience this year.
Security
The outsourcing provider you choose should have the necessary security measures in place to protect your data. This includes a strong firewall, internet security, and role-based access to sensitive information.
Onsite security is one of the most important factors to consider, as it ensures that only authorized staff are allowed into the building. Having CCTV throughout is also an excellent way of keeping track of all staff movements. This can help to solve any problems that may arise from security breaches, such as the theft of valuable company data.
You should look for an outsourcing provider that is ISO 9001 certified and PCI compliant to guarantee the best possible level of security. These certifications are recognized worldwide for their top security measures and provide peace of mind that your data is protected at all times.
Another important factor to consider is how the data is handled when transferred to your outsourcing provider. Ideally, it should be encrypted and sent to secure locations. If this is not the case, you could end up with a big security problem down the line.
Aside from the obvious security measures, you should look for a provider that carries out regular application/database and network security audits. This will ensure your data is safe from any vulnerabilities in the software, databases, or devices it is stored on.
In addition, a provider should provide employees with educational materials on handling their data properly. This will not only make them aware of their responsibilities but also ensure that they understand the consequences of breaching the terms and conditions set out in your contract with them.
Flexibility
The right outsourcing provider can take the burden of handling the 1099-T filing off of you. This will free up your resources and allow you to focus on other priorities.
Getting your students’ TINs and obtaining their information to create a 1099-T file is not always easy, so it is important to find a partner that can help you. SPS/GZ offers comprehensive 1099-T outsourcing services that will take care of this critical process for you so that you can get back to doing what you do best.
It is also important to provide your students with clear solutions for any questions they may have about their 1098-T files. This will help them resolve their issues in a timely and systematic manner. If you are using a third-party vendor, designate someone to answer student calls and set up a process for correcting or issuing a new 1098-T if needed.
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The right outsourcing provider will also be flexible and willing to meet your needs. They will take the time to get to know your company and understand your needs. This will help them better serve you and deliver the highest quality 1099-T files.