If you haven’t gotten everything together for your year-end tax obligations, now’s the time to ensure that all your information is correct. From W-2s and 1099s to past-due receivables and full-year financial reports, this end-of-the-year tax checklist will help you avoid the last-minute panic for paperwork and processes.
Tax laws are always changing, so make sure you speak with a financial advisor, legal counsel, or Professional Employer Organization (PEO) like Resourcing Edge before filing your taxes. Keep in mind that this end-of-the-year tax checklist isn’t exhaustive and different requirements may apply to your business, including different forms and filing deadlines for states and localities.
Meticulous organization and record keeping is the best way to ensure success with your taxes. You need to be able to substantiate the claims you make on your return. Keep careful records year round so you’re at ease at tax time.
Federal Tax Filing Deadlines
While many federal tax filings are due on January 31, some aren’t due until as late as April. Learn everything you need to know about W-2 and 1099 filing deadlines.
Here’s a list of federal tax filings and dates for tax year 2019:
DUE JANUARY 31, 2020
- Form W-2, Wage and Tax Statement
- Form 1099-MISC, Miscellaneous Income
- Form W-3, Transmittal of Wage and Tax Statements
- Form 941, Employer’s Quarterly Federal Tax Return
- Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Form 1096, Annual Summary and Transmittal of U.S. Information Returns
DUE MARCH 2, 2020
Form 1095-B, Health Coverage, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage delivered to employees (extended from January 31)
DUE FEBRUARY 28, 2020 (Paper Filing) or
DUE MARCH 31, 2020 (Electronic Filing)
- Form 1095-B, Health Coverage
- Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
- Form 1094-B, Transmittal of Health Coverage Information Returns
- Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
Keep in mind that the IRS will not allow the normal provisions for requesting a 30-day extension. According to IRS Notice 2019-63, “the provisions under §§ 1.6055-1(g)(4)(i)(B)(1) and 301.6056-1(g)(1)(ii)(A) allowing the Service to grant an extension of time of up to 30 days to furnish Forms 1095-B and 1095-C will not apply to the extended due date.”
Work with a CPA
There are a lot of penalties associated with tax reporting, including penalties for underpayment, late filing, and tax fraud. Work with a CPA to create a tax strategy and plan customized for your business. This will save you time, money, and stress for the years to come. You’ll also know exactly which tax forms are applicable to you company.
If you work with a PEO like Resourcing Edge, you’ll report the relevant employee and company information to them. They will file the tax forms on your behalf. With Resourcing Edge, you can complete each task easily through our online portal.
Preparing for Taxes
Ensure company and employee information is correct
- Before the end of the year, make sure all your company and employee information is accurate. Give employees time to review their name, address, and social security number for errors.
- Audit employee data to make sure you aren’t missing any information, such as social security numbers.
- Report any employees who are on a tax-exempt visa, such as A-visas and D-visas.
- If you file taxes as an S corporation, report all S-Corp shareholders who own more than 2% of the company’s stock or voting power.
- Make sure to report all taxable payments to employees for accurate W-2s.
- Report all fringe benefits except for those specifically excluded by the IRS. Taxable fringe benefits include travel expenses, meals, and equipment.
- Report equity-based compensation, which includes “any compensation paid to an employee, director, or independent contractor that is based on the value of specified stock.”
- Report all payments to contractors and vendors that exceed $600. You must also use Form 1099-MISC for any “direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.”
If you partner with Resourcing Edge, all you have to do is report the information to us and we’ll make sure everything is filed correctly.
Complete these tax-related tasks
- Review final payroll information, such as non-cash and cash income for each employee, excess retirement contributions, and manual and voided checks.
- Schedule and record all final employee bonuses and payments.
- Speak with your employees about their end-of-the-year 401(k) contributions, and “catch-up contributions” for participants age 50 and older.
- Remind employees to use their FSA funds by the end of the year before they expire.
How Resourcing Edge Can Help
The end of the year can be a stressful time for businesses and HR departments. Not only do you have to keep track of deadlines and file taxes, but there’s also holiday bonuses and commissions, rounding out 401(k) contributions, and much more to worry about.
Resourcing Edge is a Professional Employer Organization that can take care of all your tax, payroll, benefits, and HR-related duties on your behalf. We electronically file Forms W-2, 1099-MISC, W-3, 941, and more for you. With our employee and manager self-service online portals, you have access to a robust record keeping system to save time and reduce errors.
Is your business ready for 2020? Business tax preparation doesn’t have to be time-consuming drudgery. Contact us today for your free consultation with one of our experts.