Happy New Year from Creative Performance! Now that 2010 is behind us, there are several things agencies need to remember to do to close out last year. We’ve put together a list of a few things that tend to get forgotten in the excitement of the new year.
1099s
Due to vendors by January 31
TIP: remember, you’re required to send 1099s to LLCs & LLPs, not just individual contractors!
Click here for instructions from the IRS.
1096
Due to IRS by February 28
TIP: avoid having to submit a corrected 1096; wait until late February to send this out to give your contractors time to review their 1099s and advise you of any changes.
Click here for a sample form and instructions from the IRS.
W2s
Due to employees by January 31
TIP: prior to running, update employee addresses to avoid delivery mistakes.
TIP: remember, for principals of S-corps with greater than 2% ownership, you must add as additional wages any health benefits paid by the agency.
TIP: remember to add as additional wages any personal vehicle use mileage on a company car.
Click here for instructions from the IRS.
W3 Audit
Due to IRS by February 28
TIP: make sure the gross wages from your W3 match your quarterly payroll tax payments; if they don’t, the error could either be in your accounting system or that you incorrectly filed quarterly tax payments. A common example would be a payroll check that was voided after quarterly tax payments and filings were made.
Click here for instructions from the IRS.
View Circlular E on the IRS website for additional information on tax dates, codes and rates.