As an employer, one of your obligations is give reports that show income from the past year of your employees and independent contractors. For the purpose of verification, you may as well file report copies and summary report to Social Security Administration and IRS.
It is also important to know which forms are necessary for filing and its corresponding deadlines. You should also take note of the specific instructions regarding form completion for the payroll taxes this year.
New Filing Deadline Changes for Forms W-2 and 1099-MISC in 2017
The new date for filing for 2016 W-2s and 1099 forms is January 31, 2017 as announced by the IRS. Meanwhile, the same date is set as a deadline for submission of W-2 forms to employees and 1099-MISC forms to other workers for 2016.
By January 31, 2017 – Provide Form W-2 Copies to Employees
Employees should have their W-2 forms for 2016 taxes by January 31, 2017. On the same date, you must pass all 2016W-2 forms and a summary report on Form W-3 to the Social Security Administration.
By January 31, 2017, Provide Copies of 1099-MISC Forms to Non-employees
In order for you to set and send a 1099-MISC to workers who are not your employee, it very necessary to secure a W-9 form from that person for verification of taxpayer ID. For non-employees who received $500 or more from you during the year, send them a 1099-MISC. Nevertheless, there are exceptions for non-employees who will receive the said form.
By January 31, 2017 File Form 1096 with the IRS (along with 1099s)
Know how to do and pass Form 1096 to IRS together with the copies of 1099-MISC forms that you’ve sent to non-employees. For each different type of 1099 form, complete a 1096 form. On the other hand, you don’t need to complete a 1096 form in case you did an electronic filing of 1099-MISC and other 1099 forms.
By January 31, 2017, File Form W-3 with Social Security (with W-2s)
Along with the copies of W-2 forms for all employees, prepare Form W-3 Transmittal of Wage and Tax Statements. Submit these forms to the Social Security Administration. In addition, you may as well use the Social Security Administration’s Business Services Online portal to file the forms online.
It’s also important to know the penalties for late filing of returns and reports. In case you can’t make it on the deadline, you may ask for 30-day extension of time to file W-2s. Nonetheless, you’ll have to give a complete and detailed explanation for your extension request.
Here’s to helping you better understand what’s in your pocket.
Until next time.
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