Avalara – AvaTax 1099
From the Nov. 2012 Review of W-2/1099 Preparation programs.
Best Fit: Accounting practices preparing and managing year-end compliance for multiple clients.
- Built-in error checking and TIN Validation
- Comprehensive mailing and filing service
- Good support of forms in the 1099 series
- Does not offer W-2 preparation
- No built-in client billing utility
Avalara is known for its SaaS tax compliance solutions. AvaTax 1099 is designed to simplify the year-end reporting and compliance process for accounting firms. The software offers several built-in error checks and data verification processes.
Basic System Functions: 4.75 Stars
AvaTax 1099 is completely web-based making it easy for staff to prepare and file forms from virtually anywhere. There is no need for installation or manual upgrades. The software serves to simplify the entire 1099 process by offering three user-friendly steps: importing and data entry, correcting errors and transmitting forms. The vendor prints, mails and files the necessary forms for users.
AvaTax 1099 includes real-time TIN verification and error checking, matching tax IDs and names with those on file with the IRS. The solution supports the most commonly used 1099 forms. Once forms have been completed, users can preview them before submitting by using the File Manger in the Advanced Options.
Reporting: 4.25 Stars
AvaTax 1099 supports the most common 1099 series forms, such as 1099-MISC, 1099-DIV and 1099-INT, as well as 14 additional, less common 1099 forms, such as 1042-S, 3921 and 3922. Through its built-in validation process, the solution checks and verifies that addresses, TINs and SSNs are entered correctly. AvaTax also verifies the entered TINs against the IRS database. Once the data has been corrected and verified, users can submit forms to the vendor for printing and electronic filing. Users have the option to approve all forms or select which forms they would like to submit.
AvaTax 1099 also offers TIN masking for security. When forms and reports are generated, users are prompted to select how they would like the TIN to display, masked or unmasked. All uploaded documents and prepared forms are accessible via the File Manager under the Advanced Options.
Import Capabilities: 4.5 Stars
AvaTax 1099’s importing process is very user-friendly. Once users select the appropriate file and import type, the system displays the appropriate form for users to match fields from the imported spreadsheet to the form. Once mapping is complete, AvaTax 1099 then checks for errors and walks users through correcting errors and TIN validation.
The advanced options menu allows users to generate and access reports and forms for download. Users can also access every uploaded file as well.
Help/Support: 4.5 Stars
The built-in Help link directs users to the User Manual on the website. AvaTax 1099 customers also have access to live support both via the web and telephone. The Avalara Customer Center lets users log in to submit a help ticket online. Since AvaTax is a SaaS solution, all updates are managed by the vendor.
Summary & Pricing
As a completely web-based solution, AvaTax 1099 makes it easy for users to manage the year-end compliance process remotely, without the additional hassle of software installs and upgrades. Pricing for AvaTax 1099 is scalable to the reporting needs of the firm and packages start at $500.