With the year over, it is important to be prepared for what forms you need to gather, send to your employees, and what forms to file for 2016. The bulk of them have to do with taxes, but there are a couple meant to assess whether you need to pay fines to the IRS.
There are three key dates that you need to remember to ensure that all of end-of-year forms are filed correctly, on time, and without any fines.
End of Year Tax Filing
Forms Due on January 31
Submit W-2 Form to Employees
There are two parts to individuals paying taxes. The first part is for an employee to file a 1040. The other is for the employer to submit documentation to the government that verifies the amount the employee reported. Due by January 31, 2017 is the W-2 to employees so they have sufficient time to file their taxes. Failure to submit these on time can cost $30 per W-2, so if you have a company with hundreds of employees, this can add up.
Submit 1099-MISC Form to Contractors
While they are not technically employees, you still need to let them know how much money you paid them in the calendar year. That's the 1099-MISC, which is also due on January 31, 2017. The due date for W-2s and 1099-MISC are the same whether filed electronically or on paper.
Close out the year’s tasks with our informative tax return checklist.
File Form 941, 943, and 940
IRS Form 941 is an employer’s way of reporting to the IRS the withholdings from its employees. Most employers take money out of the check automatically to send to the government. Form 941 on this date is for Q4 of 2016. Instead of the 941, some small businesses may qualify to file Form 944, which is a once a year document rather than quarterly.
IRS Form 943 is the same thing as IRS Form 941, except it is targeted toward agricultural employees. If you’re filing a 943, you don’t need a 941 and vice versa.
IRS Form 940 is the Annual Federal Unemployment Tax Return. Form 940 is coupled with your last quarterly FUTA payment and it lays out how much of the tax you paid each quarter. This is sort of a summary document for the IRS to quickly analyze.
Forms Due on February 28
Overwhelmed by all the dates to remember? Download the Xcel spreadsheet checkslist here.
This is the second year that the Form 1095-C is mandatory for companies as a result of the Affordable Care Act. It is an annual statement that explains to full-time employees the health coverage that was offered by the employer. Only companies that have 50 or more full-time employees (or equivalent) are required to submit this document to employees. If filed electronically, this form isn't due until March 31.
Send 1094-C to IRS
The 1094-C acts as the cover sheet to the 1095-C the same way that the W-3 acts as a cover sheet to the W-2. This has a summary of information that can be found in more detail on each employee’s 1095-C. If filed electronically, this form isn't due until March 31.
Send W-2 and W-3 to Social Security Administration
The W-3 acts as a cover sheet to the W-2. Both documents should be sent to the Social Security Administration. If you are filing the document via paper, it is due on February 29, 2017. However, in an effort to encourage more e-filing, the IRS gives more time for those who choose to file online.
Send 1099 to the IRS
Like the W-2 and W-3, the 1099 needs to also be sent to the government for comparison. Further, if filed online, the IRS gives more time.
Forms Due on March 31
The W-2/W-3, 1099, and 1094-C can all be sent to the government by March 31st, rather than February 29th, if the employer submits electronically.
The other form a company has to file is the 1120/1120-A/1120-S/1120-W. These are for Corporate Taxes. The 1120-S is for S-Corporations, which we’ve covered. The reason this doesn’t have a hard date is because it is due on the 15th day of the 3rd month after the end of the company’s tax year. Not all companies follow a calendar year, but instead its own fiscal year. Therefore, if the fiscal year ends on August 31st, one of the above forms is due to the government by November 15th.
Justworks Can Help
Confused yet? Knowing which documents to send to employees and the government at the right time can be confusing. Justworks can help.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.