The workload of a business filing 15 information returns compared to an accounting firm that files 1500 is vastly different. The prices of tax software don’t necessarily reflect this variance.
There’s a third aspect that is: filing information returns is seasonally dependent for many companies. For example small-scale businesses might employ its software to manage filing often during a certain time period but use it sparingly all year.
It poses the question about how to purchase. Should businesses be paying continuously for access, or should its software costs be in line with the amount it actually files?
TaxFormHero takes the second approach, using per-form pricing rather than signup fees, subscriptions, or seat licenses.
Begin by examining your filing volume
It’s misleading to compare filing platforms solely on the price they advertise. Comparing filing platforms based on their stated starting prices can be inaccurate.
TaxFormHero’s pricing is published and starts with $1.99 for each form. The cost per form goes down as the volume increases until it is $0.45 after a minimum of 1,000 forms. Organizations filing substantially larger volumes can discuss custom rates.
If you are an occasional filing, there isn’t a subscription you can rescind at the conclusion of filing season. If an CPA is handling more than one client, he or is not required to purchase separate seat licenses as more staff is required to aid in the workflow.
Optional Services should be Optional
Not every filer needs identical services.
A business might be content with its current process of downloading copies of the recipient’s copy, and then dispersing the copies. Some may also want the file provider to manage delivery.
TaxFormHero’s 1099 electronic filing platform recipients can have copies of their tax returns downloaded free. Electronic delivery of recipients and print-and-mail services are available as a paid additions. Other options include TIN verification.
This modular model allows companies to separate the cost of filing services and the charges to pay for additional services rather than having to pay for features they may not even be using.
Organizational issues arise due to scale
Filing volume isn’t just about price.
An accountant who is working with multiple firms must keep different EINs organised without maintaining an uninspiring collection of non-related accounts. TaxFormHero lets multiple payer entities with a single login as well as bulk imports with Excel or CSV.
The option that blends 1099 filing with W-9 collection should allow for an improvement in the administrative burden and still maintain a precise distinct payer record. Importing organized data is a more efficient way to handle many returns for professionals.
Costs for Compliance and Security included in Cost Discussion
The most inexpensive option for filing isn’t necessarily the least expensive in the event that it requires additional administrative work or lacks capabilities the organization requires.
TaxFormHero, which is IRS-approved, allows the electronic filing of 1099s, information return forms and W-2s. The company claims it utilizes 256-bit data encryption in both the state of rest and transport, and offers two-factor verification. The company claims that it will carry out an independent audit of SOC2 Type I in October 2025, based on the Security Trust Services requirements.
Businesses should evaluate these security and operational considerations in conjunction with the cost per return.
Purchase the Filing Machine You Have
A small-sized business or accounting company, or multi-entity business shouldn’t be forced to use the same software for economics.
Calculations that are more precise are based on amount of filings, the volume of payer entities and their workload and delivery requirements.
Software doesn’t have to be a monthly expense for seasonal compliance work. Pay-perform allows the cost to change with the volume of filing done making budgeting simpler.