What Employers Need To Know About Employment Tax Forms
Operating a small business and handling tax filings for payroll purposes can be somewhat of a challenge. There are several IRS forms that can be filed, but which form best meets the needs of your company?
TaxBandits provides you with an all-in-one tax compliance and filing solution by granting you the ability to file multiple forms under one account.
Understanding Employment Tax Forms
Used to report payments for services performed for a business by people not treated as its employees, Form 1099-MISC is for non-employees that are compensated $600 or more for the year which services were rendered.
Form 1099-MISC must be filed with the IRS by the contractor and a copy of the Form must be provided to the recipient as well.
Form 1099-MISC Overview Filing Deadlines:
- Due to the Recipient by January 31, 2020
- Paper file with the IRS by February 28, 2020
- E-file with the IRS by March 31, 2020
Form W-2, Wage & Tax Statement
Form W-2 is used as a payroll or employment tax return that is filed with the Social Security Administration for employees that have social security, income, or Medicare tax withheld from their income.
A W-2 Form must be filed by employers annually and are required to send a copy of the Form to their employees to report salary and other compensations offered throughout the year for personal income tax return purposes.
Form W-2 Filing Deadline: January 31, 2020
Form W-3, Transmittal of Wage and Tax Statements
Form W-3 is a transmittal form that reports the total earnings, social security wages, Medicare wages, and tax withholdings for your employees during the tax period.
When paper filing, the IRS requires Form W-3 be attached with the W-2. To make things more convenient, TaxBandits automatically generates Form W-3 for you, based on the information you provide on your Form W-2 and send it to the SSA.
Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
Form 940 is used to report funds paid towards FUTA. Unsure of what FUTA is? Well, let’s find out now. FUTA (Federal Unemployment Tax Act) are funds which are used by the federal government to pay unemployment compensation to workers who have lost their jobs.
Only employers are responsible for paying this tax as FUTA tax is NOT deducted from employees’ wages. The FUTA tax only applies to the first $7,000 employers pay to each worker during the calendar tax year after subtracting any payments exempt from FUTA.
Form 940 Filing Deadline: January 31, 2020
Form 941, Employer’s Quarterly Federal Tax Return
Form 941 is used to report employment taxes and is filed quarterly by business owners with employees to report federal income tax, social security tax, and Medicare tax withholdings from each employee’s salary.
This form is also used to calculate the employer’s portion of Social Security and Medicare tax.
Form 941 Quarterly Deadlines:
- First Quarter (January to March) – April 30
- Second Quarter (April to June) – July 31
- Third Quarter (July to September) – October 31
- Fourth Quarter (October to December) – January 31
Form 1095-B, Health Coverage
Form 1095-B is used to report certain information regarding minimum essential coverage offered to employees.
This Form is typically used by insurance providers, such as insurance companies, self-insured employers, employers with fewer than 50 full-time employees, and other agencies that provide health insurance coverage.
Form 1095-B Filing Deadlines:
- Due to Recipient – March 2nd
- Paper file with the IRS – February 28th
- E-file with the IRS – March 31st
Form 1094-B, Transmittal of Health Coverage Information Returns
Form 1094-B is the transmittal form that accompanies Form 1095-B when filing with the IRS each year. In conjunction with Form 1095-B, these forms are used to report the type of coverage offered by health care providers to individuals.
Form 1094-B also verifies if an individual and any of their dependents received (at least) minimum qualifying health insurance coverage from their provider during the calendar year.
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