Congratulations on an amazing year. We know you worked incredibly hard to make your business the best that it could possibly be. Here’s to making it even better in 2020 with amazing growth! What other resolution could you possibly have?
Just remember while focusing on areas of improvement and where to cut costs, that tax season is here! January 31 is actually a major tax deadline for businesses, so be prepared to file multiple returns or you’ll be burdened by expensive IRS penalties, and that’s not how you want to start the year. Here are a few pointers on how to get an early start on the January 31 deadline.
How To Get An Early Start On The January 31 Deadline
You have to file an IRS W2 Form by the January 31st deadline. This is also the deadline to issue your employees their W2 Form 2019. Form W-2 is the annual statement filed with the Social Security Administration (SSA) to report salary and other compensations offered during the tax year.
Form W2 reports all of the income offered with social security, Medicare, and income tax withheld federally and by the state. Your employees need a copy of W-2 to file their personal income tax returns.
You are required to send a 1099 Tax Form to your recipients by January 31. Form 1099-MISC is used to report payments for services performed for your business by people not treated as your employees. Examples of this include independent contractors, photographers, graphic artists, and more.
These workers are not considered to be traditional employees who receive an IRS W2 Form. If you pay an independent contractor $600 or more for their services during the tax year then you are responsible for filing Form 1099-MISC for them. They will then use this form to complete their personal tax returns.
IRS Form 941, the Employer’s Quarterly Tax Return, must be filed on a quarterly basis and the 4th quarter deadline is January 31. As an employer, you’re responsible for withholding federal income tax, social security tax.
Form 941 is used to make sure that you’re doing that. You will also use Form 941 to pay the amount of social security tax you owe to the IRS. If you own and operate a business with employees you are required by law to complete this return four times a year.
Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return, provides funds dedicated to paying unemployment compensation to workers who have lost their jobs. This tax is only paid by employers and isn’t deducted from an employee’s pay.
Employers pay a tax rate of 6% on the first $7000 that each employee makes. If an employer pays their state unemployment taxes (SUTA) on-time, the FUTA tax is reduced to 0.6 percent.
E-File with TaxBandits – Right away
We know that in the upcoming month you have a lot of tax returns to file, but TaxBandits can help by making the entire process quick and easy. We offer all the forms you need, including transmittal forms with a simple step-by-step e-filing guide to follow!
Your IRS returns are transmitted promptly and accurately! Plus, our exclusive e-filing features make the entire process incredibly convenient. For example, you can use the bulk upload feature to import all of your employee information at once. Also, you can use our postal mailing feature to have us mail printed copies of your returns to each of your recipients!
If you need any assistance the amazing, US-based TaxBandits support team is here to help. Give us a call Monday – Friday from 9 AM to 6 PM EST at 704.684.4751, reach us via live chat, or take advantage of our 24/7 email support at support@Taxbandits.com.
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