So January 31st is this friday! It’s here! What you may ask? The 1099-MISC and W-2 deadline, of course. This is the last day to file these forms, so if you haven’t already completed these forms and mailed them to your contractors and employees, then it’s time to get the process going ASAP!
The TaxBandits team is here to help you race towards the finish line! This is what you MUST do by Friday, January 31, 2020…
File Your W-2 With The SSA
The W-2 is a wage tax form that reports the wages and compensation that an employee earned, as well as the social security, income taxes, and medicare taxes withheld.
If you have paid at least one employee and withheld taxes, you must file a Form W-2.
This information must be reported to the Social Security Administration on an annual basis. Failure to submit these informational returns by January 31, 2020 will result in penalties…Yikes.
Distribute W-2 Copies
As an employer, you must furnish your employees with a copy of Form W-2, this is called the employee copy or recipient copy.
If you are filing more than 250 W-2 forms, they must be submitted electronically.
These recipient copies are very important to your employees. They will use the wage information that you have provided them to complete their own income taxes.
Listen up, this is important! You must distribute your employee copies to your employees. They must be postmarked by…you guessed it…January 31, 2020.
File Your 1099-Misc With The IRS
As if the W-2 wasn’t enough to keep business owners overloaded with extra work during January, some must also file Form 1099-MISC.
The Form 1099-MISC is a tax form that is used to report miscellaneous income, most often payments to independent contractors.
Here are the reasons that the IRS requests that you file a Form 1099-MISC
If you paid $10 or more in royalties
If you made payments of $600 or more in business payments, rents, or independent contractors.
If you made direct sales of more than $5,000 of consumer products for resale anywhere other than a permanent retail establishment.
Distribute Your 1099-MISC Copies
The IRS requires that Form 1099-MISC be distributed to recipients as well.
Your Independent contractors must include these reported payments in their income taxes when they submit them to the IRS.
You MUST distribute the Form 1099’s by mail to all of your independent contractors and they must be postmarked by…we’ll say it again…January 31, 2020.
The TaxBandits Solution
So, if you are required by the IRS or SSA to file one or both of these forms…you’ve got some work ahead of you. It’s not a leisurely jog to the finish line, it’s an all out SPRINT!