The yr 2017 could look like a very long time from now, however it will likely be right here earlier than you realize it. There are some essential modifications impacting companies required to file sure data returns. The earlier you gear up for this tax duty, the better your submitting duties shall be.
Adjustments to Data Returns
You probably have staff, as at all times you should present them with their Kind W-2 by the tip of January. What’s new is that you should additionally transmit copies, together with Kind W-3, to the Social Safety Administration by the identical date, January 31, 2017. Previously, the transmittals weren’t due till the tip of February if sending paper kinds or by the tip of March if transmitting kinds electronically. The change was made to allow the IRS to extra readily match data with a view to thwart fraudulent tax refund claims. Discover extra particulars within the directions to the W-2 and W-3.
Should you use impartial contractors, there’s a change for you this yr. The identical dates for furnishing kinds to employees and transmitting them to the federal government apply to Kind 1099-MISC, with some variation. Should you full Field 7 on Kind 1099-MISC, which is used for reporting non-employee compensation (referred to in authorities shorthand as 1099-MISC NEC), then you should observe the W-2 dates described earlier for submission. The one distinction: As an alternative of transmitting kinds to the Social Safety Administration, transmittals of 1099-MISC, together with Kind 1096, are despatched to the IRS.
If what you are promoting completes Kind 1099-MISC to report different varieties of revenue, reminiscent of rents or royalties, the outdated deadlines (February 28, 2017, for paper returns, and March 31, 2017, for transmitting kinds electronically) for transmission proceed to use. Discover extra particulars within the directions to Kind 1099-MISC.
Kinds 1095-B and 1095-C
In case you are an relevant massive employer, or ALE (50 or extra full-time and full-time equal staff) in 2016, you should present staff with Kind 1095-C by January 31, 2017. Final yr this due date had been prolonged to the tip of March as a result of it was the primary yr this data return is required.
An ALE should furnish staff with the shape, even when the corporate had opted to not supply well being protection and pay the tax penalty beneath the Reasonably priced Care Act’s employer mandate.
Even if you’re not an ALE, you should full Kind 1095-B when you have a self-insured plan, reminiscent of a well being reimbursement association. In case you are not an ALE and solely have insurance coverage protection, then the insurer sends staff the shape.
The transmittal dates for copies of the 1095s, together with Kind 1094-B or Kind 1094-C, are additionally new. Final yr, employers had till the tip of Could to ship paper copies to the IRS or transmit them electronically by the tip of June. This yr, the due dates are the identical as for many different data returns: February 28, 2017, for paper returns; March 31, 2017, for digital submitting. Discover extra particulars in the directions to those kinds and transmittals.
There aren’t any extensions for offering employees with their data returns. Nonetheless, for those who want extra time to transmit data returns to the federal government, you’ll should ask the IRS. That is carried out on Kind 8809, which has been revised to be used within the 2017 submitting season.
Typically, you’ll be able to receive an automated 30-day extension. Should you want much more time, there aren’t any further automated extensions so that you’ll should make a particular request. The request is made by submitting a second Kind 8809 with a proof of the extenuating circumstances that prevented you from submitting by the due date.
There isn’t a automated extension for W-2s. There may be solely a doable 30-day non-automatic extension. It is going to be granted solely beneath extraordinary circumstances or disaster, reminiscent of a pure catastrophe or hearth destroying the employer’s books and information.
The quantity of penalties you could owe for submitting late or incorrect data returns is determined by once you repair the issue. The penalty is assessed per type, and there’s a most penalty.
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- Should you appropriate the issue on or earlier than 30 days after the required date: $50 per type
- Should you appropriate the issue after the 30th day however no later than August 1: $100 per type
- Should you appropriate the issue after August 1: $260 per type
Whereas these primary penalty quantities are unchanged quantities that utilized final yr, the caps on penalties have been adjusted for inflation. Be aware that small companies, that are these with common annual gross receipts for the three prior years of $5 million or much less, have a smaller penalty cap than bigger corporations.
Prepare now for the 2017 submitting season, which is simply across the nook. Be sure to know who’s chargeable for submitting your data returns: in home, a payroll firm, your CPA, and many others. Take into account that an organization submitting 250 or extra data returns — W-2s, 1095, 1099s — through the yr should transmit data returns electronically.
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