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SOURCE Greatland Corporation
Avoid penalties, improve compliance and know the important changes for year-end
GRAND RAPIDS, Mich., Oct. 21, 2013 /PRNewswire/ -- Every year brings with it new changes related to W-2 and 1099 forms and reporting requirements. There are several important changes this year in the wake of the new affordable care act, making it imperative for businesses to understand the changing W-2 and 1099 reporting environment.
Greatland, one of the country's leading providers of W-2 and 1099 products for business, wants employers to know about some of the key changes that will affect businesses this year.
Affordable Care Act Provisions
Beginning in 2013, employers are required to withhold a 0.9% Additional Medicare Tax on wages paid to an employee in excess of $200,000 in one calendar year.
In addition, to show employees the value of their health care benefits, a requirement is in effect for certain employers to report the cost of coverage under an employer-sponsored group health plan. This total will need to be recorded on an employee's W-2 in Box 12 using Code DD. Until the IRS issues final guidance, this reporting is not mandatory for employers who filed less than 250 W-2s. This reporting is for informational purposes only and is not taxable.
W-2 and 1099 Form Changes and New Additions
The rate of social security withholding (for employees only) was restored to 6.2% for 2013. An update has also been made to the W-2G form, with boxes added to report state winnings, local winnings, local income tax withheld and name of locality.
In addition to the above W-2 Form changes, there are also several specific updates to the 1096, 1098 and 1099 Forms, including:
Additional state copies: Copy 1 (for payer state) and Copy 2 (for recipient state), were added to the following forms for 2013: 1099-DIV, 1099-G, 1099-INT, 1099-K, and 1099-OID.
Filing reminders for 2013
To eliminate confusion and to save time and money, the IRS recommends including perforations between forms for 1099s and W-2s (other than Copy A) to make separating forms easier for the recipient. Appropriate instructions for Forms 1099 and W-2 must be provided to the form recipient similar to those on the official IRS form to aid in proper reporting.
Businesses are required to e-file information if they process 250 or more W-2s or 1099s (per form type), and this threshold is based on filer, not the preparer.
The record retention rules for 2013 are as follows: Forms W-2 must be saved for four years after the due date of the report, and Forms 1099 must be kept for three years from the due date of the return; four years for Form 1099-C or if backup withholding was imposed.
Important dates – 2013 W-2 and 1099
January 31, 2014 – due date to mail employee copies for W-2
January 31, 2014 – due date to mail recipient copies for 1099; February 18, 2014 is the due date for 1099-MISC if reporting payments in boxes 8 or 14
February 28, 2014 – due date to send Copy A to federal agency on paper (W-2 to SSA, 1099 to IRS)
March 31, 2014 – Due date to send Copy A to Federal agency electronically (W-2 to SSA, 1099 to IRS)
Greatland (www.greatland.com) is the W-2 and 1099 specialist, focused on providing guidance, products, and solutions for small to mid-size businesses and accountants. Through Greatland's subsidiaries – Greatland, Nelco, FileTaxes.com and Broker Forms – the company offers an extensive array of specialized products for business: W-2 forms, 1099 forms, W-2 and 1099 software, online filing, business checks and check writing software, presentation materials, income tax preparation supplies, and mortgage forms. Greatland is an employee-owned company with locations in Grand Rapids, Mich. and Green Bay, Wis. Follow us on Facebook or Twitter: @GreatlandCorp
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