Want to be able to access your books anywhere you are? Consider converting your QuickBooks Desktop file to QuickBooks Online. Transferring your information from your desktop to Intuit’s safe and secure cloud service takes about 30 minutes, and opens up a streamlined, user friendly interface and easier access to your important accounting data.
Did you know you can give your accountant access to your QuickBooks Online company file? This will allow them to review your books and help you with any tricky or confusing transactions, as well as make tax filing time much easier.
Interested? We can help walk you through the process of adding one of our accountants to your QuickBooks Online.
In general, you will need to send 1099s to anyone you have paid $600 or more for rents, services (including parts and materials), prizes and awards or other income payments made for business purposes. Recipients can include any individual, partnership, Limited Liability Company, Limited Partnership or Estate.
Some common exceptions (people or businesses you don’t need to send 1099’s to) include corporations, real estate agents, property managers, or sellers of merchandise, freight, storage, etc. You do need to send a 1099 to any lawyer you paid $600 or more to, even if they are incorporated.
A best practice for this season is to make your list, check it twice, and collect W-9 information for the people and businesses you don’t already have the social security/federal employer identification/taxpayer identification number and address for.
Now is a good time to review your vendors for 1099 information. You can send a note to the vendor or a W-9 to get the missing information before we go into the new year when it will be needed.
Desktop: Go to vendors, print/efile 1099’s, run the review 1099 vendors, review for missing information. Determine if you didn’t fill in the info or need to send the vendor a W-9. Once you get the information, go to the vendor file and update it. You can also drop and drag a copy of the 1099.
QBO: Go to expenses, in upper right prepare 1099’s, continue to 1099’s, you will see a list of your vendor’s that you have checked the 1099 box in their file. You will see in red any information that is missing. Determine if you didn’t fill in the info or need to send the vendor a W-9. Once you get the information, go to the vendor detail and update it. You can also drop and drag a copy of the 1099.
Also see Candy’s 8/20/20 tip on 1099’s.
The first week of December is a good time to review different types of pay that should be included in an employee’s W-2.
You will want to look at this early in the month so you will have time and make sure the employee has enough pay to offset the tax that will need to be added to their W-2. Remember these type of pay do not add to the employees total compensation but are taxed, so their pay for the pay period is reduced by the amount of taxed owed. This needs to be done before you run your final payroll for the year.
Employees who drive a company-provided vehicle for personal use must report the taxable value of the benefit at least once a year. To determine the value of the benefit, you should refer to Publication 15-B: Employer’s Guide to Fringe Benefits.
When you determine the value of the benefit, we can include it on Form W-2. Personal Use of Company Car (PUCC (car)) fair-market-value (FMV) amount is reported on Form W-2. And is included in Box 1, 3, 5, 16 and 18 wages. The value should also be reported in Box 14 (PUCC (car)). S-Corp Health.
While S-Corp owners are generally considered employees for tax reporting purposes, the IRS has special rules for these individuals when it comes to Fringe Benefits. Company paid health insurance is taxable for income tax withholding, but exempt from Social Security and Medicare. State taxation varies by jurisdiction. S-Corp amount is reported on Form W-2. It’s included in Box 1 wages and Box 16 (depending on the state) and Box 18 (depending on the local jurisdiction). The value should also be included in Box 14 (S Corp Owner). Group Term Life Insurance (GTL).
Company provided GTL is a non-taxable fringe benefit for coverage of $50k or less. When the company provides greater coverage, the value in excess of $50k is taxable. And valued according to a specific IRS formula.
To determine the value of the benefit, you should refer to Publication 15-B: Employer’s Guide to Fringe Benefits. The amounts are reportable for federal income tax but not subject to withholding. However, they are subject to Social Security and Medicare for both. Employers who want to collect the FICA from employees need to process these entries with a regular pay check that has enough net pay to cover the tax. State taxability for PIT and UI varies by jurisdiction.
Group Term Life (GTL) is reported on Form W-2. And is included in Box 1, 3, 5, 16, and 18 wages. The value should also be included in Box 12 (Code C).
