Five key deadlines to help small businesses avoid IRS headaches
The adage that an ounce of prevention is worth a pound of cure still rings correct &ndash specially for organizations preparing for tax season. If you oversee your firm&rsquos filing specifications, realizing what is due and when can save you and your employee&rsquos penalties, time and anxiety.
Each year, January&rsquos arrival implies two important tasks if you are in charge of filing and reporting for your firm or employer: issuing W-2s and 1099 types to employees. Modest-to-medium-sized companies need to strategy accordingly to remain ahead of crucial dates crucial to producing the 2013 filing season your &ldquogold-star&rdquo year.
According to the Internal Revenue Service (IRS), businesses need to send their personnel W-2s by Jan. 31 and give all W-2s and the transmittal form W-3 to the IRS by the last day of February.
If an employee does not receive a W-2 from their employer, they can contact the IRS for assistance. The IRS requests staff to wait until at least Feb. 14, permitting for slow mail delivery. Following Feb. 14, the IRS will speak to the employer and request the employee get a duplicate W-2. The employer will be notified of the penalties if it fails to comply with government regulations, which can incorporate fines, penalties and even imprisonment.
The same applies to issuing 1099s, used mostly for reporting organization payments to freelance and contract workers, or other non-personnel. In basic, organizations want to furnish workers with a copy of their 1099 form by Jan. 31, 2014.
According to the professionals at Greatland Corporation, a firm that supplies W-2 and 1099 types and e-filing services to small firms, for the previous 3 years, the IRS has been cracking down on contractors who aren&rsquot often attentive when it comes to paying taxes. In reality, the government has collected $ 9.5 million in back wages from employers who misclassified workers as independent contractors given that 2011.
&ldquoWe have many buyers that utilised to feel overwhelmed by adopting a clear procedure for managing the timeline for ordering and submitting their types,&rdquo says Janice Krueger, a spokesperson for Greatland, 1 of the country&rsquos leading providers of W-2 and 1099 goods for company. &ldquoFeedback from a recent survey we carried out showed that 43 percent of small enterprise filers are terrified of being fined by the IRS for not complying with a new rule or regulation for W-2 and 1099 reporting. Adopting an early game-program is always advisable to let adequate time for the complex filings.&rdquo
Estimates are that 20 percent of firms misclassify workers so make confident your business knows how to properly report your contractors when issuing a W-two and 1099 forms.
According to Greatland, these crucial dates will permit company W-2 and 1099 filers to remain on track this filing season:
* Jan. 31, 2014 &ndash Due date to mail employee copies for W-two
* Jan. 31, 2014 &ndash Due date to mail recipient copies for 1099
* Feb. 18, 2014 &ndash Due date for 1099-MISC if reporting payments in boxes eight or 14
* Feb. 28, 2014 &ndash Due date to send Copy A to federal agency on paper (W-two to SSA, 1099 to IRS)
* March 31, 2014 &ndash Due date to send Copy A to Federal agency electronically (W-2 to SSA, 1099 to IRS)
To make certain your enterprise doesn&rsquot miss a deadline, you can uncover a full list of federal state and filing dates to don’t forget on Greatland&rsquos W-2 and 1099 reality center website.