The year has just begun, but an important tax deadline is already less than one month away. If you are an employer, don’t forget that you should issue and file wage statements by Monday, February 1, 2021. Keep reading to discover what are the statements and forms you should keep in mind.
Companies should complete and file a W-2 form for every employee to whom they pay a salary. Don’t forget that you should also send your employees copies of their W-2 forms by February 1, 2021, so that they can file their taxes before the due date (April 15, 2021).
This form (official name: Transmittal of Wages and Tax Statements) is a detailed summary of all the W-2 forms filed by your company. This form is used by the Social Security Administration (SSA) to keep track of the salaries, commissions, tips, and other compensations that employees receive throughout the year.
File a 1099-MISC Form for every person to whom you paid the following during the last year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in:
- Prizes and awards.
- Other income payments.
- Medical and health care payments.
- Crop insurance proceeds.
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
- Payments to an attorney.
- Any fishing boat proceeds.
As is the case with Forms W-2, you should also send Forms 1099-MISC to recipients before February 1, 2021.
You should file Form 1099-NEC, Nonemployee Compensation, if all the following statements apply:
- You made the payment to a person who is not your employee
- The payment was for services in the course of your trade or business
- You made the payment to an individual, a partnership, an estate, or a corporation
- Payments were at least $600 during the year
Also in this case, keep in mind that recipients of Forms 1099-NEC should receive their copies by February 1, 2021.
More Tips About Taxes
Do you want to learn more about taxes and Economic Impact Payments? Here are some previous posts you may find interesting.
- 4 Steps you can take to start preparing your 2020 tax return
- The IRS will deliver some Economic Impact Payments by Debit Card
- Remember: gift cards are not to be used to make tax payments
- Keep in mind these ideas when you file your taxes
- We debunk 4 common myths about tax returns
- Don’t forget this essential step if you are starting a new business
Contact the Experts at JT Tax Services
At JT Tax Services we have the experience, the knowledge, and the drive to assist you in the preparation of your taxes. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.
We are located in Oxnard, California. Contact us today by email (firstname.lastname@example.org), telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.