Small Business Tax
Accounting - In operating your business, you will probably make certain payments
you must report on information returns. You must give the recipient of these
payments (the payee) a statement showing the total amount paid during the year.
You must include the payee's identification number and your identification
number on the returns and statements.
Employee.
If you have employees, you must get an SSN from each of them. Record the
name and SSN of each employee exactly as they are shown on the employee's
social security card. If the employee's name is not correct as shown on the
card, the employee should request a new card from the SSA. This may occur if
the employee's name was changed due to marriage or divorce.
Other payee.
If you make payments to someone who is not your employee and you must
report the payments on an information return, get that person's SSN. If you
must report payments to an organization, such as a corporation or partnership,
you must get its EIN.
A payee who does not provide you with an
identification number may be subject to backup withholding. For more
information about this or preparing any tax return for prior years or for the
2012 filing season, please contact us:
ABA Tax Accounting
Amare Berhie, Senior Tax Advisor
amare@abataxaccounting.com
Direct 612-282-3200
Toll free 866-936-0430
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