The IRS has changed the previous 2 date deadlines to a single January 31 deadline.
This means that beginning with the January 2017 filings you are required to not only provide forms W-2 to your employees and 1099-Misc to your contractors by January 31st, but you are ALSO required to file Forms W-2 with the W-3 transmittal with the Social Security Administration and 1099-Misc with form 1096 transmittal, to the IRS, by the same January 31st deadline. No more waiting until February 28th to file the government copies.
What does this mean for you? NOW is the time to implement best practices in obtaining your required documentation for both categories of individuals. A few suggestions: make sure you have verified your employees social security numbers! Confirm your employees current mailing address in early December each year. Review your records for reporting non-employee compensation on form 1099-Misc and make sure you have a signed form W-9 on file for each eligible independent contractor (retain for 4 years).
We hope the earlier filing deadline did not cause you to incur significant penalties last year. At AdvantEdge, we managed to get all client filings completed by the new January 31st deadline. This was a huge undertaking, so this year we are being proactive and scheduling our first client meetings on this topic, beginning in October!
AdvantEdge bookkeeping clients will be receiving an email from their assigned bookkeeper in early October. Please make room in your calendar for this very important meeting so you can move into the holidays with confidence that this has already been taken care of.
Also, your QuickBooks and Sage 100 ERP software makes tracking and reporting simple. If you need assistance with establishing best practices or getting your software setup, give us a call at 760-722-6839 ASAP and we would be happy to help.