January
,Employers should give their employees copies of their Form W-2 as soon as possible in January. The last possible date for mailing them is January 31.
January 1—Federal holiday (New Year’s Day).
January 2—If you made advance payments for employees eligible for the earned income tax credit and they did not submit a new Form W-5, “Earned Income Credit Advance Payment Certificate,” showing continued eligibility, you should stop any future advance payments. You can restart these payments if a new form is submitted.
January 10—You should collect Form 4070, “Employee’s Report of Tips to Employer,” from any employee who received $20 or more in tips.
January 15:
• If you need to make estimated tax payments for the previous tax year, they must be paid by this date. This payment is the final tax payment for the previous tax year.
• If you pay your Social Security, Medicare, and withheld income tax on a monthly deposit, you should make that deposit by this date for the December payment.
• If you withhold nonpayroll taxes and you deposit these taxes monthly, you should deposit the December payment by this date.
Martin Luther King Jr. Day is a federal holiday that falls on the third Monday in January. Banks and federal offices are closed, as well as many state offices and other businesses.
January 31:
• W-2 forms, “Wage and Tax Statement,” for your employees must be completed and delivered to your employees by this date.
• You also must deliver any required 1099 forms to your vendors or contractors. There are many different types of 1099s. These are the key ones that small businesses use:
• 1099-MISC—Miscellaneous Income: For most of your vendors or contractors.
• 1099-MSA: Distribution from an Archer MSA.
• 1099-R: Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, and so on.
• If you are expecting any 1099 forms for dividends, interest, rents, or any other payments you received during the year, you should get these forms by January 31.
• If you did not pay your final tax installment on January 15, you can avoid a penalty for late payment of this installment if you file your tax return by this date.
• You also need to file year-end reports for the federal government if you have employees. Form 940 or 940-EZ, “Employer’s Annual Federal Unemployment (FUTA) Tax Return,” summarizes your payroll information for the year and is used to calculate your FUTA tax for the year. You won’t need to make a payment as long as you have made all the necessary contributions to FUTA during the year. The FUTA payment for the last quarter of the previous tax year is due by this date. Don’t forget to file any state unemployment forms as well if required by this date.
• You should use Form 945, “Annual Return of Withheld Income Tax,” to report any nonpayroll income tax withheld from employees. Your state also probably has forms that must be filed if you have employees.
• Be sure you add any state requirements to this list. There are probably year-end forms required by the state or local governments for any taxes that might be due such as sales taxes, state FUTA taxes, or other tax payments unique to your state or business.
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.