• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 8. Taxes: Don't Get Caught Aslee... > The Important Month of January

The Important Month of January

Once the independent contractors have been sorted out from the employees, it is important to remember that January is an important month for mailing out tax forms. Who gets what and by when?

  • Independent Contractors— IRS Form 1099 (Miscellaneous Income). An independent contractor should receive a Form 1099 if you have paid that individual at least $600 last year. Additionally, you will have to send out a Form 1099 to anyone who was paid over $600 in royalties, rent, prizes, or broker exchange transactions. Independent contractors should have their 1099s from you no later than January 31.

  • Employees— An employee should receive IRS Form W-2 (Wage and Tax Statement). The W-2 form lists how much money the individual was paid and the amount of FICA, federal, and state taxes you withheld. Like the independent contractors, employees should have their W-2s no later than January 31. Form W-3 summarizes all W-2s prepared by the employer.

  • IRS The IRS will need Form 1096 as a cover page summary for all your Form 1099s.

  • Social Security Administration— Remember to send them a copy of all your employees' W-2 forms.

  • Finally, don't forget— Don't forget individual quarterly returns (i.e., Form 941 and state), as well as Form 940 for Unemployment Taxes


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint