- December 4, 2017
- Posted by: Hope Davis
- Category: Audit
By: Fawn Smith
As 2017 winds down business owners and CPAs are having more than visions of sugar plums dancing in their heads, many envision the impending deadlines related to year-end payroll taxes. The deadline for reporting and submitting 2017 1099s MISC (if reporting nonemployee compensation in box 7) along with corresponding 1096 and W-2/W-3 is January 31, 2018. This due date applies to both the recipient (employees and independent contractors) and Federal Agencies. The 1099-MISC/1096 transmittal will be reported to the Internal Revenue Service and the W-2/W-3 sent to Social Security Administration.
As a good practice, businesses should have W-9s for all independent contractors/vendors and W-4s for all employees before year end. These forms list necessary information to complete the 1099/1096 and W-2/W-3 forms. Earlier deadlines have been put in place in order to prevent tax fraud. There are penalties associated with late filing W-2s and 1099s. For example if a business fails to file/issue W-2s penalties start at $50 per statement. Form 1099 late filing penalties vary based upon the lateness of filing and company revenue size.
Although year-end payroll tax can be a daunting task, prior planning and organization can help alleviate the stress. For small or new business owners, having a trusted CPA firm to assist in the process can invaluable. So get your forms together, mark your calendars, and call HAGB, January will be here before you know it!