Deadline moved up in 2017! The Consolidated Appropriations Act of 2016 moved the deadline for filing Form W-2 to January 31, whether paper or electronic filing. Companies were already required provide W-2s to their employees by January 31, but starting in 2017 (for the 2016 reporting year) the January 31 deadline also applies to W-2s and W-3s submitted to the Social Security Administration and the IRS. Traditionally, the deadline to submit government copies of the forms was February 28 for paper forms or March 31 for e-filing. #W2 #Payroll
Penalties doubled last year! A “failure penalty” may include failing to file the forms by the due date, failing to furnish a copy of the form to the recipient, failing to provide all required information, and failing to provide correct information. The Act increased the penalty for general failures from $100 to $250 per return. The annual cap on penalties increased from $1,500,000 to $3,000,000. Entities who intentionally disregard filing requirements will see penalties increase from $250 to $500 per return with no annual cap.
The increased penalties apply to both the copy filed with the IRS and the copy filed with the payee, so the penalties essentially total $500 per form with an annual cap of $6,000,000 for general failures. For intentional failures, combined penalties are $1,000 per form with no cap. #1099 #W2 #Payroll
Deduct as much of your family health insurance premiums as the law allows. You may be able to deduct 100% of the cost of medical, dental, and long-term care insurance for you, your spouse, and your dependents. To qualify, you must have a profit from self-employment or wages from an S corporation in which you own more than 2% of the stock. #Insurance #selfemployment #deduction
Understanding the difference between tax credits and tax deductions. Tax deductions reduce the amount of income subject to taxation. Tax credits give you a dollar-for-dollar reduction of your tax liability. Congress often uses tax credits to encourage certain activities. Regularly should investigate those credits that might be available to cut the taxes your business pays! #TaxCredit #TaxDeduction
#QuickBooks Do you have money sitting in #undeposited funds on your balance sheet? Not applying customer payments against invoices? Makes for overstated income! Costly at tax time!
A mistake I see frequently when I examine previous entries done by Bookkeepers is putting owner contributions in income and sometimes distributions in expense. These are very often large numbers and have a substantial effect on taxable income. In many cases they have not done this intentionally. This is most obvious when they put contributions in income. To non-accounting person see's all money coming in is income and all money going out is expense. This can be a costly mistake if you not caught before tax return is completed! #QuickBooks
This time of year many small business owe FUTA tax and do not realize it. You owe federal unemployment taxes if you paid at least $1500 in wages during any calendar quarter in the current or previous year. The wage base for FUTA is $7,000. Once employee year-to-date (YTD) wages exceed $7,000, an employer stops paying FUTA for that employee. FUTA (Federal Unemployment) Tax Deposit Rules
Generally, you must deposit your federal unemployment taxes on a quarterly basis. However, if your quarterly FUTA tax liability is $500 or less, you don't have to deposit it. Rather, you may carry it forward and add it to your FUTA liability for the next quarter. If your liability for the last quarter of the year (plus any undeposited amounts from prior quarters) is $500 or less, you have the option of either depositing the tax or remitting it with your annual return.
Assuming your quarterly FUTA tax liability is more than $500, you must make your quarterly FUTA deposits by the last day of the month that follows the end of each quarter:
Ending date of quarterDeposit due date
March 31April 30
June 30July 31
September 30October 31
December 31 January 31
Do you owe federal, state or local taxes but cannot pay your total tax debt in a single payment? Even if you don’t qualify for an offer in compromise or for “currently not collectible” status under federal tax rules, we can negotiate a tax installment agreement or IRS payment plan for you. This will allow you to settle your tax debt over time. Call us to get help with peace of mind 256-489-1478