By Coleen Lyon
Now is the time for employers to be gathering information to file end of year payroll and insurance forms to avoid delays in meeting the filing deadlines.
In an effort to curb identity theft, the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) brought a change in the filing due date for Forms W-2. The new due date for all Form W-2 filers is January 31, with no extension for filing electronically. Forms must be submitted to the Social Security Administration and to each employee by the January 31 deadline. Now is the time to double check names, addresses, and social security numbers for every employee.
Forms 1099-MISC are also due to the IRS by January 31 if reporting non-employee compensation payments in box 7. This includes payments of $600 or more for services performed by someone who is not your employee (including parts and materials). A form W-9, which can be downloaded from the www.irs.gov forms and publications section, can be used to obtain pertinent information for each recipient of a Form 1099-MISC.
Applicable large employers (ALEs) under the Affordable Care Act (ACA) must also report information about health insurance coverage offered to its full-time employees and their dependents to the IRS. ALEs must report information about themselves, the coverage they offered – if any – and the individuals covered under the policy. ALEs are required to furnish a statement to each full-time employee that includes the same information provided to the IRS by January 31.
ALEs must file Form 1095-C, Employer-Provided Health Insurance Offer and Coverage with the IRS annually, no later than February 28, 2017, or March 31, 2017, if filed electronically.
ALEs that are self-insured employers are also subject to the information reporting requirements, filing a single information return, Form 1095-C, and transmittal, Form 1094-C.
As we move toward the end of calendar year 2016, take a little time to check your records, know what forms you will be required to file, and start gathering the needed information to avoid any costly delays.
The BCS Small Business Department is here to help with any questions you may have.