It’s that point of yr that each small biz proprietor dreads- tax time! Sadly this yr, there are some new tax kinds that each small enterprise might want to use.
On the Small Enterprise Radio Present this week, Jaime Lizotte, the Tax Compliance Options Supervisor at efile4Biz discusses the brand new tax type on the block, the 1099-NEC and who must get one.
Jaime Lizotte on IRS 1099-NEC Kind
In line with Jaime, the IRS reintroduced the 1099-NEC for all non-employee service compensation to interchange field 7 on the standard 1099-MISC type. The 1099 type can nonetheless be used for different paid royalties, rents, and different rewards.
Jaime reminds all small enterprise house owners that it is a crucial type that must be filed by January 31, 2021 by any firm that has unbiased contractors or third social gathering for providers that aren’t on a enterprise payroll. “In case you paid them $600 or extra out of your accounts payable or withheld any federal earnings taxes from distributors , you in all probability have to file this kind.”
For 2021, there is also adjustments to the automated 30-day extension if you want to file 1099s and W-2s late. Jamie explains that the extension is now not automated. “You need to full and submit Kind 8809 to request an extension – and you want to have a hardship motive for not assembly the dates similar to a pure catastrophe. “ The Kind 8809 have to be filed by January 31, 2020. Nonetheless, it’s vital to do not forget that an extension doesn’t prolong the reporting requirement deadline to the recipient of the shape. You continue to must get recipient copies out by January thirty first otherwise you’ll face penalties.
Small companies can file all these kinds to the federal government and ship them to recipients by way of efile4Biz. It’s also possible to examine on-line to ensure they have been acquired.
Take heed to your complete interview to grasp methods to use the up to date type on the Small Enterprise Radio Present.