New Year, New You, and along comes the W2!

Out with the old, in with the new, and along comes the W2!  According to the Internal Revenue Service, employers have an annual deadline of January 31st to mail employee tax forms derived from the previous calendar year.  This includes the W-2, which is the government standard for any US employer engaged in business or trade, has made payments of $600 dollars or more, and income taxes withheld for services performed by employee.

It is crucial for business owners to correctly categorize individuals providing services. Withholding income taxes, withholding and paying Social Security and Medicare taxes, and paying unemployment tax are requirements of the employee and business relationship.   If the company has control over what the worker does, provides tools and supplies, and operates under an employment agreement generally confirms the determination.

Webster’s dictionary defines an employee as:
Noun: a person who works for another person or for a company for wages or a salary.

Added to the list of New Year’s Resolutions, the Affordable Care Act perpetuates going the extra mile with health care tax law requirements.   Tax preparers started answering a lot of questions in 2014 about the ACA’s tax consequences related to the unfamiliar form, 1095-B, sent by employers and health insurers to covered individuals.  The deadline to send health care tax forms is February 2nd with few exceptions in 2016.  Although the forms are required for this 2015 tax year, the good news is that 1095 forms are filed by whomever provides the health insurance coverage and individuals do not need to fill these out themselves.

Similarly, the W-3 Form is a compiled transmittal form showing the totals from all W-2’s submitted for employees.   The W-3, along with individual W-2’s, is sent to Social Security Administration (SSA) by the last business day in February and shows total earnings, Social Security wages, Medicare wages and withholding for all employees from the previous year.

Where to file the W-3/W-2’s?
Send the forms to the Social Security Administration at:
Data Operations Center
Wilkes-Barre, PA 18769-0001

E-Filing?  “E”-ven better!  If you file W-2’s with the SSA Business Services Online site, you don’t need to include a W-3 form because the W-3 is calculated AUTOMATICALLY!


Charitable, Churches and Religious, Political, Private, and other Non-Profit organizations get in the mix by filing the Form 1096.  A tax exempt organization must file Form 1096 and transmit Copy A of Forms 1099, 1098, 5498, and W-2G to the IRS by the due date specified in the instructions.  These Certain Information Returns may be filed electronically using the IRS Filing Information Returns Electronically (FIRE) system (visit www.IRS.gov/FIRE) or mailed directly to the IRS.

-February 16, 2016
Susan Amsler

If you need assistance, look no further than Randolph Business Resources. Our experienced staff is ready to lend a hand to you and your business.

Visit us @ www.randolphacctg.com
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