Everyone has to file a return when the new year starts. Filing your financial information by the tax deadline is something that must be done, yet many of us dread it. But for businesses, things can get complicated. And that’s where good bookkeeping and accounting services can help.
Processing the W2 Forms: The Social Security Tax
Companies who have a team of employees on their payrolls must be ready to pay the final installment for the previous year by the January 15th deadline (unless it falls on a weekend). Once this is done, they must prepare all W2 tax statements for every worker in accordance with federal, state and local laws. One of the most critical deductions for employees is the Social Security tax. Employers need to file copies of W2 forms with both their employees and the Social Security office for proof of income and projected social security benefits.
The 1099-MISC Form
The 1099-MISC is known as non-employee compensation and covers independent contractors and freelancers.As a business owner, you are required to keep copies of these for yourself and for them. These are also known as non-employee compensation tax forms and must be filed by an accountant with the IRS on the designated due date.
Forms With Possible Extended Filing Deadlines
Form 940 is the Employer’s Annual Federal Unemployment Tax Return. In cases where your tax liability is $500 or less, you can pay with your return. But if it is over $500, you will need to make a full deposit. But in either case, your filing deadline can be extended to February 10th if you’ve made the full deposit on time the year before.
Other instances where filing extensions can be granted. Quarterly filing forms such as the 941 form, which require a full deposit of your quarterly taxes in full in order to qualify for the February 10th filing extension. A full deposit will extend your filing deadline to February 10th. The same holds true for Form 945, which concerns backup withholding for retirement accounts. Both require that you owe no more than $2,500 in order to pay the full amount due upon filing.
Your tax concerns can be addressed by visiting our website. Just contact us today and our team can help you with your filing and bookkeeping needs.