Are you a California employer who must file state copies of W2s and 1099s? Returns that are paper-filed with the IRS will be forwarded to the CA Franchise Tax Board (FTB), so there’s no need for you to also file with the FTB. Generally, the IRS and FTB have the same filing requirements. If you have 250 or more returns, electronic filing with the FTB is required. The e-filing due date is 3/31/19. If you use the IRS Combined Federal/State Filing Program, only one filing is necessary. The IRS will forward original or corrected data to the FTB. If you have questions about filing, please contact your Linkenheimer CPA.
The Internal Revenue Service today reminds employers and other businesses of the Jan. 31 filing deadline that applies to filing wage statements and independent contractor forms with the government.
The Protecting Americans from Tax Hikes (PATH) Act requires employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. The Jan. 31 deadline also applies to certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors. Such payments are reported in box 7 of this form.
This deadline makes it easier for the IRS to verify income that individuals report on their tax returns and helps prevent fraud. Failure to file these forms correctly and timely may result in penalties. As always, the IRS urges employers and other businesses to take advantage of the accuracy, speed and convenience of filing these forms electronically.
An extension of time to file Forms W-2 is no longer automatic. The IRS will only […]
An employee must include personal use of an employer-provided automobile in gross income. If not reimbursed by the employee, the personal use of the automobile is a taxable fringe benefit.
The employee must include in income the FMV (fair market value) of the fringe benefit reduced by (1) the amount, if any, paid for the benefit, and (2) the amount specifically excluded from gross income by statute (i.e., the portion attributed to use in the employer’s business).
The value of the fringe benefit as current compensation is subject to FICA (for non-agricultural employees) and FUTA, and must be included in the employee’s W-2. However, it is not subject to federal income tax withholding if the employee is so notified.
Methods to value the fringe benefit:
- Annual Lease Valuation
- Vehicle Cents-per-Mile Valuation
- Commuting Valuation
- Special Commuting Rules
If your business provides automobiles to your employees, please consider contacting us to discuss your options.
Written by Mike Musson, CPA, Partner