Happy New Year! Well, with new year comes with new rules.
Hello, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.
As you begin preparing your final payroll tax returns for 2016, take into account earlier due dates for two common reporting forms.
Forms W-2 for 2016 are due January 31st. The January 31 deadline applies to forms given to employees, as well as those submitted to the Social Security Administration. IRS late penalties will range from $50 – $530. Ouch! While CA will charge $50 per return. So watch out!
Forms 1099-MISC with non-employee compensation in Box 7 are due January 31st. The January 31 due dates applies to forms given to the recipients, as well as paper and electronic copies filed with the IRS. Please note that this due date applies only to 1099s that report amounts in box 7. The due dates (end of February) remain unchanged for the other boxes. Now, if you don’t have the proper information of the recipients, make sure you provide them a copy of the W-9 Request for Taxpayer Identification Number so they can fill it out and return it to you ASAP.
Why? Well, there is a $260 per return federal penalty for failure to file the 1099s. If filed within 30 days of the due date, the federal penalty is reduced to $50 per return. To make it worse, California conforms to these due dates. And they have their own applicable penalties. For 1099s it’s $100 for failure to file, $30 if filed within 30 days of the due date.
So watch out! Make sure you file the W-2s and 1099-Misc with non-employee compensation by January 31st to avoid incurring penalties.
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Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com.