It’s the time of year when we are all so busy with holidays and family, yet we must continue to run our businesses and have everything done by the end of the year. Here are some tips to help you make it through this stressful time.

Year-End W-2 Addbacks:

• Check with your third-party payroll provider to find out what the deadline is for supplying them with the information for your W-2 addbacks. There can be hefty fees associated with a special check run if you don’t meet their deadline.
• Include all of the possible addbacks that are applicable to your business, such as:
  • Personal Use of Auto for any employee driving a company-owned vehicle for non-business purposes
  • Life Insurance premiums for any employee where the company is NOT the beneficiary may need to be included in the employee’s W-2.
  • W-2s for 2% or greater shareholders of S Corporations may also need to include premiums for Health Insurance, Life Insurance, Disability Insurance or Long-term Care Insurance and Health Savings Account contributions paid by the company.
• HBL CPAs, P.C. team members are here to help you with any calculations. Generally, a third-party payroll provider expects to receive the amounts to be added back but they do not assist in any of the calculations required.

Details concerning taxable fringe benefits including what should be added back to your employees’ W-2s can be found at http://www.irs.gov/pub/irs-pdf/p15b.pdf. You can also find this information in our annual Year-End Payroll Newsletter which is mailed to our business clients in December.

1099s:

1099s can be one of the most difficult tasks to deal with at year end. To make the gathering of information less painful, make sure you request and receive a completed Form W-9 from all of your vendors. The form can be found at http://www.irs.gov/pub/irs-pdf/fw9.pdf.

Remember, you will need to issue a 1099 to any individual or partnership to whom you pay $600.00 or more throughout the year for services provided to your business. All 1099s need to be postmarked to the recipients no later than February 2, 2015. For more information on the rules for preparing 1099s go to http://www.irs.gov/pub/irs-pdf/i1099gi.pdf. Our Year-End 1099 Newsletter will be mailed to our business clients in December and is full of information concerning the preparation and filing of 1099s.

 

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