January 31 Filing Deadline Applies to Wage Statements and Independent Contractor Forms
Small Business Accounting - IRS has
issued a reminder that wage statements and independent contractor forms must be
filed with the government by this Wednesday, January 31.
Background. In general, information returns are
required to be filed for compensation paid by persons engaged in a trade or
business, to individuals, whether as employees or nonemployees, in the course
of the person's trade or business. The returns for employees are Form W-2, Wage
and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, and
the return for nonemployees is Form 1099-MISC, Miscellaneous Income. Persons
required to file a return are also required to furnish the individuals to whom
the return relates with a written statement containing the aggregate amount of
payments and the payor's contact information. Those written statements must be
supplied by Jan. 31 of the calendar year
following the year for which the return must be filed. (Reg. § 31.6051-1(d);
Code Sec. 6041(d))
Pursuant to the Protecting American from Tax Hikes Act of 2015,
Div. Q (PATH Act, P.L. 114-113, 12/18/2015), the filing due date for Form W-2
and for Form 1099-MISC for nonemployee compensation is Jan.
31, which is the same as the due date for the related written employee
and payee statements.
Nonemployee compensation generally includes fees for
professional services, commissions, awards, travel expense reimbursements, or
other forms of payments for services performed for the payor's trade or
business by someone other than in the capacity of an employee. (PATH Act Joint
Committee on Taxation Report —JCX-144-15, pg. 118)
ABA Tax
Accounting observation: Nonemployee
compensation is shown on Form 1099-MISC, Box 7. Thus, Forms 1099-MISC with
entries in Box 7 must be filed by January 31.
However, for Forms 1099-MISC that don't have entries in Box 7, the deadline
remains Feb. 28 for paper filings or Mar. 31 for electronic filings.
January 31 deadline. IRS
has issued a reminder that employers must file their copies of Form W-2 and
Form W-3 with the Social Security Administration by this Wednesday, January 31.
This deadline also applies to Forms 1099-MISC filed with IRS to report
non-employee compensation payments in box 7.
References: For
the due date of Form W-2, Form W-3 and Form 1099-MISC, see FTC 2d/FIN ¶ S-4930;
United States Tax Reporter ¶ 60,414.001.
If you need help setting up or
completing any tax-related paperwork needed for your business, don't hesitate
to call. We're here to help!
For no obligation free consultation contact us today!
Amare
Berhie, Senior Accountant
(651) 300-4777
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