Accounting software USA: sales tax, 1099s and Form 941
Accounting software in the USA tracks sales tax, which each state and local jurisdiction sets, prepares 1099s for contractors that can be e-filed through the IRS's IRIS system, and links to payroll software that files the quarterly Form 941 reporting federal income, social security and Medicare taxes withheld from wages.
Also calledUS accounting softwareaccounting software for the US
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- Sales tax
- Set by states
- 1099 e-filing
- IRS IRIS
- Payroll return
- Form 941, quarterly
What accounting software in the USA has to handle
Sales tax is set by states and local governments, not the IRS: Texas, for example, charges 6.25% state sales and use tax and local jurisdictions add up to 2%, for a combined maximum of 8.25%. Software tracks the rate for each place a business sells into. Information returns: a business with 10 or more information returns, including Forms W-2, must file them electronically, a rule that started with tax year 2023. The IRS's free IRIS Taxpayer Portal takes the 1099 series, and software can file through IRIS directly. Payroll: Form 941 is due on 30 April, 31 July, 31 October and 31 January, and Forms W-2 and the annual Form 940 by 31 January. Prices: QuickBooks Online Simple Start is $38 a month and Plus $140; Xero's US plans are Early at $27, Growing $59 and Established $97 a month, with Xero Payroll, powered by Gusto, at $36 a month plus $6 per person; FreshBooks Lite is $23 a month; Wave Pro is $19 a month; Zoho Books Standard is $20 a month, or $15 billed annually, with 1099-NEC and 1099-MISC e-filing.
Common questions
What accounting software do US small businesses use?+
QuickBooks, Xero, FreshBooks, Wave and Zoho Books all sell US plans. QuickBooks Simple Start is $38 a month, Xero Early $27 and Wave Pro $19, and Wave and Zoho Books have free plans.
Does US accounting software file sales tax?+
Sales tax is set by each state and local jurisdiction, so software tracks the rate for each place you sell into.
Can accounting software e-file 1099s?+
Yes. Zoho Books e-files 1099-NEC and 1099-MISC from its Standard plan, and the IRS accepts 1099s through IRIS. Businesses with 10 or more information returns must e-file.
When is Form 941 due?+
By the last day of the month after each quarter: 30 April, 31 July, 31 October and 31 January. Employers who deposited all taxes on time get 10 more days.
Accounting and payroll software in the USA
Intuit QuickBooksSmall business accounting covering books, invoicing and payroll.Profile →
XeroCloud accounting for small businesses with a large app ecosystem.Profile →
GustoPayroll, benefits and HR built for small businesses.Profile →
NetSuiteCloud ERP for mid-market companies outgrowing basic accounting.Profile →More software for the USA
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