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Filing Wage Statements and Independent Contractor Forms

Posted on in Small Business Taxes

San Jose business tax form lawyerAn IRS deadline for business owners is fast approaching. January 31, 2019 is the date by which employers and businesses must submit wage statement forms and independent contractor forms. 

These requirements were outlined in the Protecting Americans from Tax Hikes (PATH) Act of 2015, which made it compulsory for businesses to submit duplicates of Form W-2 (Wage and Tax Statement) and Form W-3 (Transmittal of Wage and Tax Statements) to the Social Security Administration by the end of January of each year. In addition, certain Forms 1099-MISC (Miscellaneous Income) must be filed by this date with the IRS to report payments made to independent contractors. 

There are penalties for businesses that do not comply with this deadline. 

Purpose of This Filing

By requiring employers to file wage statements and independent contractor forms by January 31, 2019, the IRS states that it can verify income reported by individuals in a faster and more accurate manner. This timeline also helps the IRS detect information that has been misreported. Thus, this requirement can assist in the prevention of tax fraud.

Tips to Help Employers File These Documents

  • Verify worker information. Employers are advised to confirm workers’ information, including:
    • Names
    • Addresses
    • Social Security numbers or individual taxpayer identification numbers
  • Confirm company account information. Employers should confirm with the Social Security Administration that all business account information is correct and active. This should be done as soon as possible.
  • Filing online is available or request hard copy Forms W-2. If hard copy forms are required by the business, they should be ordered in advance as soon it is known that paper forms will be needed.
  • Extensions of time. It should be noted that the IRS does not offer automatic extensions of time to file Forms W-2. Such extensions will only be given in very specific circumstances.

A San Jose, CA Small Business Tax Lawyer Can Help

As a small business owner, you are likely used to being a jack of all trades in your company. For example, your business may demand that you act as a salesperson, a human resources officer, and a manager in any given week. Many small business owners find that taxation is one area that they cannot effectively handle on their own. Whether it be business taxes, payroll taxes, or a tax issue unique to your field or company, our firm can bring our years of experience to help you understand your tax reporting responsibilities, maintain compliance, and avoid unnecessary penalties.

To better understand how our San Jose small business tax attorney can help you address tax reporting issues and avoid penalties, call our office at 408-866-1810.

Sources:

https://www.irs.gov/newsroom/irs-reminds-employers-business-owners-of-jan-31-filing-deadline-for-wage-statements-independent-contractor-forms

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