A New Year mean it’s time to file taxes and information returns. The federal deadline for employers to file 2017 Forms W-2 is January 31, 2018.
Only one 30-day extension is available for Form W-2. To request an extension, you have to fill out Form 8809 Application for Extension of Time to File Information Returns. You must have Form 8809 completed and submitted by January, 31 as well.
This extension is not automatic, and will usually only be granted when there is an extraordinary event causing the need for the extension. In addition, if granted, the extension does not extend the time that Form W-2 is due to be provided to employees.
Why are you telling me this?
As a reminder that the rules have changed. In the past, employers had until March 31 to submit their copies of the form. However, last year, when filing 2016 Form W-2, the IRS changed the deadline to January 31.
The change was part of the Protecting Americans from Tax Hikes Act, more commonly known as the PATH Act. The IRS made this change in hope of being able to better, and more timely, detect and prevent tax refund fraud and identity theft.
Who gets a 1099?
You must issue a Form 1099-MISC to each nonemployee you pay $600 or more during the year, and this is a requirement for all trades or businesses. For the purpose of this form, even a nonprofit is considered a trade or business.
The adaptable Form 1099-MISC is also required in a variety of payments to corporations:
· Medical and health care payments.
· Attorneys’ fees.
· Substitute payments in lieu of dividends or tax-exempt interest.
· Payments by a federal executive agency to vendors for services.
However, except for the specified situations, Form 1099-MISC is not typically used for corporate payments. Indeed, there are many payments for which Form 1099-MISC is not appropriate:
· Payments for merchandise, telegrams, telephone, freight, storage and similar expenses.
· Payments of rent to real estate agents.
· Military differential wage payments made to employees while they are on active duty in the armed forces or other uniformed services (report on Form W-2).
· Business travel allowances paid to employees (may be reportable on Form W-2).
The moral of the story …
Circle Jan. 31, 2018, on your calendar. It’s an important deadline for you as a small business owner. If you’re not sure which form to use and when, give us a call. We’ll be happy to help