2020 Q4 tax calendar: Key deadlines for businesses and other employers
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Thursday, October 15 If a calendar-year C corporation that filed an automatic six-month extension: File a 2019 income tax return (Form 1120) and pay any tax, interest and penalties due. Make contributions for 2019 to certain employer-sponsored retirement plans. Monday, November 2 Report income tax withholding and FICA
Relief from not making employment tax deposits due to COVID-19 tax credits
The IRS has issued guidance providing relief from failure to make employment tax deposits for employers that are entitled to the refundable tax credits provided under two laws passed in response to the coronavirus (COVID-19) pandemic. The two laws are the Families First Coronavirus Response Act, which was signed on March 18, 2020, and the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, which was signed on March 27, 2020. Employment tax penalty basics The tax code imposes a penalty for any failure to deposit amounts as required on the date prescribed, unless such failure is due to reasonable
Numerous tax limits affecting businesses have increased for 2020
An array of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2020. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that are subject to Social Security tax is capped for 2020 at $137,700 (up from $132,900 for 2019). Deductions Section 179 expensing: Limit: $1.04 million (up from $1.02 million for 2019) Phaseout: $2.59 million (up from $2.55 million Income-based phase-out for certain limits on the Sec. 199A qualified business income deduction begins at: Married filing jointly: $326,600 (up from $321,400) Married
Employee benefit plans: Do you need a Form 5500 audit?
Some benefit plans are required to include an opinion from an independent qualified public accountant (IQPA) when filing Form 5500 each year. The IQPA examines the plan’s financial statements and schedules to ensure they’re presented fairly and in conformity with Generally Accepted Accounting Principles (GAAP). The financial statements and IQPA opinion are often referred to collectively as the “audit report.” 100 participant rule Generally, employee benefit plans with 100 or more participants — including eligible, but not participating, as well as separated employees with account balances — must include an audit report with Form 5500, “Annual Return/Report of Employee Benefit
How Safe and Sound is Your Information?
In today's day and age it seems like there are more and more reports of personal information being compromised. More and more often people's financial information is finding its way into the hands of criminals. As we move past last week's National Security Awareness Week, we must continue to be diligent in making sure our information is safe just as much as we work to care for our personal safety. Please consider these steps to protect yourself from identity thieves: Keep Your Computer and Mobile Phone Secure • Use security software and make sure it updates automatically; essential tools include:
Year-End Tax Reminders
Need a last minute gift for the hard to shop for person......how about some year-end tax tip reminders! Manage your Capital Gains and Losses - Talk to your broker/investment adviser to get an estimate of gains and losses, including projected taxable Review any potential sales before year end to take advantage of the capital gains o Review any potential stock option plans. Year-end Charitable Contributions - Donations prior to year-end can help reduce o Donor-advised funds may be a great alternative. Planning for 2020 donations using retirement accounts starts Retirement Planning - 401(k) limits are $19,000 per year for 2019
Wisconsin Sales & Use Taxes – Are You Ready for 2020?
As we near the end of 2019 and 2020 rapidly approaches, we find our Accounting Services Department busy getting ready for the changes ahead. The end of the year means finalizing payroll reports and sales tax filings along with year-end bookkeeping and numerous other work for our accounting services clients. But, it also means bringing our clients up to speed on the changes for the year to come. For 2020, one such change is in the area of Wisconsin Sales Taxes. For what seems like an eternity, Wisconsin has had various additional city/local/additional taxes above and beyond our base 5%
Counting your employees for ACA compliance purposes
It seems like a simple question: How many full-time workers does your organization employ? But, when it comes to the Affordable Care Act (ACA), the calculation can be complicated — and the answer is important. Potential penalty The number of workers you employ determines whether your organization is an applicable large employer (ALE). If you’re an ALE, your organization may be subject to a penalty tax for either: Failing to offer minimum essential health care coverage to all full-time employees (and their dependents), or Offering eligible employer-sponsored coverage that isn’t “affordable” or doesn’t offer “minimum value.” The penalty tax
Employers can truncate SSNs on employees’ W-2s
The IRS recently issued final regulations that permit employers to voluntarily truncate employee Social Security Numbers (SSNs) on copies of Forms W-2 furnished to employees. The purpose of the regs is to aid employers’ efforts in protecting workers from identity theft. Proposals and comments On September 20, 2017, the IRS issued proposed regs on the truncation concept. A truncated taxpayer identification number (TTIN) displays only the last four digits of a taxpayer identifying number and uses asterisks or “Xs” for the first five digits. Seventeen comments were submitted on the notice of proposed rulemaking and many recommended adopting the
Have the States Gone Too Far?
As the Wayfair decision begins to settle in and more and more States write regulations to follow with what items they feel are subject to sales tax in there state for out-of-state sellers, it appears the trend is just getting started. Employers BEWARE! The Wayfair decision has definitely changed how many employers need to keep records for sales taxation and the large new paperwork burden it is placing on them. However, what's next? Many believe the Wayfair decision will directly impact income tax filing regulations as well many more companies subject to state income tax filing obligations as well.