New January 31 Deadline for W-2s & 1099s!

A new federal law accelerates the deadlines for filing FormW-2s & certain Form 1099s starting with the 2016 forms. The Protecting Americans from Tax Hikes (PATH) Act of 2015 makes it easier for the IRS to find and detect refund fraud.

Beginning with 2016 forms, employers or businesses are now required to file Forms W-2 & Forms 1099-MISC (that report nonemployee compensation in Box 7) with the Social Security Administration or Internal Revenue Service by January 31. The January 31 deadline to furnish these forms to employees/recipients remains unchanged.

Previously, employers had until the end of February, if filing on paper, or the end of March, if filing electronically, to file federal copies of these forms. The later filing deadline for other forms in the 1099 series also remains unchanged. Having the W-2s and 1099s will help the IRS to verify the legitimacy of tax returns in order to release tax refunds properly. Here are some key points to keep in mind when preparing W-2s or 1099s:

• Determine fringe benefits and other reportable items that should be included in W-2s (health insurance paid on behalf of 2% S-Corp shareholders, personal use of auto, group term-life)
• In general, 1099's need to be prepared for each unincorporated person (independent contractor, partnership) to whom you have paid at least $600 in rents or services during the year. Attorney fees of $600 or more should also be reported even if the entity is incorporated
• Obtain/update current addresses for all employees/subcontractors
• Obtain all subcontractor taxpayer identification numbers; Form W-9 can be used to request TIN's

Please call us at 610-444-1215 if you have any questions or need assistance preparing year-end payroll or 1099's

Bill and Chad Fenstermacher
and our team at Fenstermacher & Company, LLP

Fenstermacher & Company, LLP
Pennsylvania:
115 South Broad Street
Kennett Square, PA 19348
ph 610-444-1215  fx 610-444-1635

Delaware:
3801 Kennett Pike,
Building C, Suite 100
Greenville, DE 19807
ph 302-478-9515  fx 302-478-0262
www.fandco.com