In 2013, there have been significant tax law changeseffecting freelance and contract workers who file Form 1099.
If you work with freelancers, time is running out for employers to file Form 1099 under the new tax law changes under the 2010 Health Care Act. Employers must report both goods and services earned in 2012, not just goods and exempted payments. The intended goal is to remove the distinction between goods and services paid to freelancers, thereby cutting overall compliance costs.
Compliance under the new tax law changes means there is little time to waste.
When you file your federal income tax return before April 2013, you’re filing your 2012 taxes, and the 2012 income tax brackets define the amount of tax you owe to the government before credits and after-tax adjustments.
Some great insight about the tax rates for 2013. Watch your paycheck carefully for changes!