Preparing for Year End
As the end of the year approaches, it can be confusing to decide what information you need to get together and send to your accountant. We all know that January 1st will be here before we know it, so we have put somethings together to help your business out.
To Prepare your W-2s, your Accountant will Need the Following:
- Any IRS and state Department of Revenue notices.
- Do you need to do a year end bonus payroll (if applicable) get this info to them as early as
- Do you have any changes to family/child status?
- Has there been an event or change in your income that would affect your tax bracket.
- Did you use business vehicle for personal use?
- If you are doing your own payroll don’t forget to include the following on your W-2’s
- Report miscellaneous taxable income.
- Gift cards, moving expenses, third party sick payments, etc.
- 401(k) plan? Please advise if not already reported above for W-2 accuracy.
- Health and accident premiums paid by S-Corporations need to be reported on W-2’s.
Don’t Forget to Prepare Your 1099s!
With the increased fines and the IRS looking at 1099s more closely, this is an important tax items that often gets overlooked.
The deadline to file 1099s changed this year. Whether you file by electronically or by paper, they must be sent to recipients and filed with the IRS by January 31st. If not filed by due date and there is not reasonable cause, you are subject to penalties that are based on when you actually file the forms:
Every company who paid independent contractors or non-incorporated companies $600 or more during the calendar year for a service (except for attorneys) must be issued a Form 1099. The Form 1099 would include payments made for labor and materials if they were billed on the same invoice. If materials were billed on separate invoices, you can omit that payment amount from your Form 1099 total.
- The penalty is $50 per information return if you correctly file within 30 days of original due date, with a maximum penalty $187,500 for small businesses.
- The penalty is $100 per information return if you correctly file more than 30 days after original due date, with a maximum penalty $187,500 for small businesses.
- The penalty is $260 per information return if you file after August 1 or do not file required information returns, with a maximum penalty $1,072,500 for small businesses.
- Self-Service: Client to provide information for 1099s to be completed, mailed and filed.
o Set up fee: $50
o $15 per 1099
- Full Service: Our accountants analyze provided a QuickBooks file to determine who should be issued a 1099, sent list to client for approval, 1099s completed, mailed, and filed.
o Set up fee: $50
o $25 per 1099
You will need to provide to your accountant the legal business name or individual name, EIN or SSN, and address as completed by the recipient on their W-9. If you have their email address, provide that we well.
Still stuck on where you start? No problem – just give us a call or drop us an email and we will be more than happy to get someone to help you out with any of your end of year needs. GC does tax returns, payroll filings, 1099s, tax planning, etc.
Also, don’t forget to download your Your Free Year End Checklist to keep you on track!