Here are a couple quick updates on changes to 1099 non-employee compensation reporting and delay of Michigan minimum wage increase. Please note important filing dates and related penalties:
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Section 139 of the Internal Revenue Code excludes from a taxpayer’s gross income certain payment to individuals to reimburse or pay for expenses related to a “qualified disaster”. Covid-19 is a federally declared disaster.
2% or more shareholders of an S-corporation (and family members) are not treated as an employee when it comes to most benefits. Please see the table below for benefits that are taxable and for benefits that are tax-free to a 2% or more shareholder (and family members) of an S-corporation:
This is the time of year when many employers give deserving employees a reward for a job well done. For FICA and income tax withholding purposes, wages don’t include gifts that are classified as de minimis fringe benefits. Tax-free de minimis fringes are benefits provided by employers that are offered infrequently and have a fair market value so small that it is impractical and unreasonable to account for them. The following are treated as de minimis fringes:
For this exemption, a Disabled Veteran means a person who is a resident of this state and who meets 1 of the following criteria:
The deadline for filing information returns requires Forms W-2, W-3, and 1099 with non-employee compensation to be filed on or before January 31 of the year following the calendar year to which such returns relate, regardless of whether the forms are filed on paper or electronically. Please note the following due dates:
Small employers who have been filing Form 941 - Employer’s Quarterly Federal Tax Return - and expect that their employment taxes for the 2016 calendar year will be $1,000 or less may contact the IRS to request to file annually on Form 944.
There are big payroll tax changes coming in 2017 as a result of the tax extenders bill, Protecting Americans from Tax Hikes (PATH) Act of 2015:
With few exceptions, Federal payroll tax deposits must be paid to the US Treasury by electronic funds transfer.
Tags: Payroll Tax; EFTPS