Preparing for Year-End Filing - NFIB · Identify which A/P payments are subject to reporting...

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Preparing for Year-End Filing: Making W-2 & 1099 Reporting Organized and

Easy

Connie Davis, Greatland

http://www.nfib.com/PreparingForYearEnd



Meet Our Speaker

Connie Davis Product Compliance Architect at

Greatland

• Over 34 years of payroll and payroll tax

compliance

• Served on the By-Laws Revision

Committee and the Nominating and

Elections Committee of the APA.

• Served for 3 years on the IRS’

Information Reporting and Advisory

Committee (IRPAC) as well as on the

advisory board of Commerce Clearing

House’s Payroll Management Guide.




• Common year-end reporting

problems and mistakes

• Tips and tricks for organizing

paperwork

• Ways to make reporting easier

• Forms you can file electronically

• Solutions available to small

businesses

Objectives

After this webinar, you should

be able to identify:




• W-2 and W-3 – for reporting employee

income

• 1099/1096 – for reporting non-

employee income – W-2G, 5754, 1097, 1098, 3921, 3922, 5498

• W-9 – to collect names and TINs for

non-employee recipients – W-9S, W-8BEN, W-8ECI, W-8EXP, W-8IMY

• W-4 – to collect names and SSNs for

employees

Forms Needed

Forms You Will Need




• Publication 15 (Circular E) – Found on the IRS website

• Click on ‘Forms and Publications’

• Instructions to forms– ‘What's

New’ section on 1st page

Helpful Publications

Resources You Will Want

Greatland • We can help answer your

questions or point you in the right

direction




New Form for 2011

NEW- For This Year

• 1099-K – Merchant Card and

Third Party Network Payments – Income that is reportable on Form

1099-K is not reported on Form

1099-MISC

– Exception for de Minimis

Payments

• Gross amount must exceed

$20,000 for the year, and

• Total number of transactions must

exceed 200 for the year




• Determine if payments to non-

employee recipients are subject to

reporting on information returns – 1099, 1098, W-2G

• Collect completed form W-4 from

employees or W-9 from non-

employees

• Verify TIN/SSN with the SSA or

IRS

At the Time of Hire or 1st payment

to a recipient

Reporting Timeline




• Determine how you plan to file forms – Electronically

• Identify the software or service provider that you will be using – Purchase license or apply for logins, password, PIN, etc.

– Paper • Order forms from vendor

– While many vendors guarantee compatibility with your system or

software, it is still a good idea to test out your process ahead of time

» This also allows for you to think of other forms or supplies you

may have forgotten about. Such as envelopes, ink cartridges, etc.

We’ll talk more about filing methods in just a little bit…

Early Fall

Reporting Timeline




• Records for employees – Sum total wages, taxes, benefits

• Records for non-employees – Sum total payments

• Determine if any thresholds are

met, such as $600 minimums

• Determine which states you will

need to file Forms W-2/1099 – Verify that you’re registered in the

state

At Year-End

Reporting Timeline




• Complete W-2 & 1099 to

submit to recipients – Forms need to be postmarked by

January 31st

• Prepare 941 and 940 to

submit to IRS for employees

• Due January 31st (see exception

in February)

January for paper forms

Reporting Timeline




• If furnishing 1099-MISC to

recipients with amounts in box 8

or 14: – Mail forms to recipients by February 15th

• If filing paper to the IRS: – Submit forms 1099 and 1096 by

February 28th

• If filing paper to SSA: – Submit forms W-2 and W-3 by

February 29th

February for paper forms

Reporting Timeline




• If filing electronically to the

IRS or SSA – Due date is April 2nd 2012

• March 31st is the general due

date, which happens to fall on a

Saturday in 2012

March/April

Reporting Timeline




• For employees’ income: – Send Forms W-2 to the state

(and locally if applicable) of

residence

• For non-employee

income: – Determine whether the state

requires 1099 form reporting

or not

State and Local Reporting

State and Local Reporting




State Reporting




• Form W-2 – IRS compares income on W-2 to income reported on

personal tax return (1040)

– SSA used SSN to post earning for future social security and

Medicare benefits

• Information returns that are subject to Backup

Withholding: 1099-B, DIV, INT, K, MISC, OID,

PATR – Prevents receipt of backup withholding notices (CP2100)

and penalty notices for failure to submit valid name and TIN

data on recipient

Why Verify TIN?

TIN Verification




• Online – Social Security Number Verification

System (SSNVS) – Allows you to enter up to 10 names and SSNs for

immediate results, or

– Upload overnight files with up to 250,000 names and SSNs.

• Response for this method is typically 1 business day

– Available only to employers or third-party submitters

and only for verification of current and former

employees

To Verify TIN:

TIN Verification




• Phone – Telephone Number Employer

Verification (TNEV) – An automated phone system that allows you verify up to 10

names and SSNs at one time

– Available only to employers or third-part submitters and only

for verification of current and former employees

• Interactive and Bulk Online TIN Matching

Programs – Publication 2108A

– Only for income types subject to backup withholding

– Online at the IRS eServices site

To Verify TIN:

TIN Verification




Form W-2 DON’Ts

Common Errors to Avoid

• DON’T include the dollar sign or commas in the money field

• DON’T make copy too light

• DON’T print too small or too large – use 12pt courier font if possible

• DON’T complete forms by hand

• DON’T inappropriately check the ‘Retirement Plan’ checkbox in box

13

• DON’T misformat the employee’s name – 1st name and middle initial in 1st box

– surname in 2nd box

– suffix in 3rd box

• DON’T staple, tape, or fold forms




• DO use black ink when filing out forms

• DO include the decimal point and cents in monetary entries

• DO file forms alphabetically by employees’ last names or

numerically by SSN

• DO send the whole Copy A page with Form W-3 to the

SSA…even if one of the forms on the sheet is blank or voided

• DO print all recipient copies (B, C, and 2)

on perforated paper

• DO send forms in a flat mailing

Form W-2 DOs





• DON’T send the same information to IRS more than once

• DON’T use dollar signs ($), ampersands (&), asterisks (*), commas

(,), apostrophes (‘) or other special characters in monetary entries or

in the payee name line

• DON’T cut or separate Copy A of 1099 Forms that are printed 2 or 3

to a sheet

• DON’T send photocopies of any forms

• DON’T staple, tear, or tape any forms


Form 1099 DON’Ts




• DO type or print entries with black ink only

• DO verify that name/address/TIN on 1096 and 1099 match

• DO include the decimal point and cents in monetary entries

• DO verify that the filer’s name, address, and taxpayer identification

number (TIN) are the same on both Form 1096 and the attached

Forms 1099

• DO submit a separate Form 1096 with each type of return

• DO use pre-printed red drop-out ink forms when

filing Copy A of Forms 1099 with IRS

• DO print all other copies of Form 1099 on

perforated paper


Form 1099 DOs




Collect name and TIN info immediately

Verify name and TIN through IRS/SSA

sites

Identify which A/P payments are subject

to reporting

Determine filing method before year-end

Order paper forms early

Purchase software

Register for online services and obtain

logins and passwords

Reconcile wages and taxes and balance

with amounts paid to IRS/state(s)/cities

Reconcile non employee income

Recap: Tips for a Successful Year-End




Read instructions for the forms you will be completing

Focus on the ‘What’s New’ section

Make sure summary (reconciliation) forms balance with forms being

filed

1096 with 1099 forms

W-3 with W-2 forms

Mail or distribute recipient forms by the due date

Submit forms timely to the IRS/SSA

Watch for and respond promptly to any correspondence from the

IRS/SSA

Recap: Tips for a Successful Year-End




Filing Methods

Ways to Report W-2 & 1099 Information

• Businesses can file W-2 & 1099 forms by

paper, or electronically (e-file) which is the

federal government’s preferred method – If filing less than 250 of each form, paper filing is

approved

– If filing more than 250 of each form, information is

required to be e-filed




The choice is between blank

forms or forms preprinted with

images to report your

information

• Software compatibility

• Instructions

• Perforations

• Red copies

Paper Forms

What to look for in a Filing Method…




Ability to manage data

throughout the year in a

complete software package

• Print to forms

• E-file (Federal and State)

• Corrections

• Full Library

• Add-on services that make your job

easier

Software





Options to easily complete all

reporting requirements in one place

• Federal, State, and Recipient filing

• Enter forms data online or import

from software

• Federal & State e-filing

• Secure and authorized by IRS

• Fast and easy status tracking

Online





Print Blank and

Preprinted

W-2 & 1099

Forms

Greatland’s Filing Solutions Complete W-2 & 1099 reporting solutions for Federal, State and Recipient Filing

W-2 & 1099 Filing Solutions

Software

WinFiler and

WinFiler Plus

Desktop Software

Online

speedEfiler.com

Plus, general W-2 & 1099 knowledge and guidance!




Questions? Comments? Contact Greatland:

EMAIL: [email protected]

ONLINE: www.Greatland.com

FACEBOOK: facebook/GreatlandCorp

TWITTER: twitter@GreatlandCorp

YOU TUBE:

YouTube/GreatlandCorporation

LINKED IN: Greatland


mailto:[email protected]

http://www.greatland.com/



Valuable Resources

IRS Small Business and Self-Employed

Tax Center: http://www.irs.gov/businesses/small/index.html

Social Security Administration: www.ssa.gov

Register for SSNVS: www.ssa.gov/bso/bsowelcome.htm

Register with IRS eServices for TIN

matching:

https://la2.www4.irs.gov/e-services/Registration/index.htm

Greatland’s W-2 & 1099 Fact Center: http://www.greatland.com/category/resource+center/w-

2+1099+fact+center.do


http://www.irs.gov/businesses/small/index.html

http://www.irs.gov/businesses/small/index.html

http://www.ssa.gov/

http://www.ssa.gov/bso/bsowelcome.htm




http://www.greatland.com/category/resource+center/w-2+1099+fact+center.do



Preparing for Year-End Filing - NFIB · Identify which A/P payments are subject to reporting...

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