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Tag Archive for W-2

16 Jun 2020
Written by | Posted in TaxConnections

W-2 Or 1099 For Shareholder Employees Of S Corporations?

1099 or W-2 For Shareholders: Paul Hamann

W-2 Or 1099? That’s the number one question Jack receives here at RCReports.

Answer: W-2

We hear your argument: Paying wages via 1099-MISC instead of W-2 has no tax effect!

Here’s Jack’s reply: It’s the law.

FS-2008-25 states: Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code.

Generally, an officer of a corporation is an employee of the corporation. The fact that an officer is also a shareholder does not change the requirement that payments to the corporate officer be treated as wages.

Just to be certain we looked up the IRS definition of Employee and Independent Contractor, just to make sure there wasn’t some loophole or wiggle room to argue for independent contractor status.
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17 Apr 2020
Written by | Posted in 1099 or W-2

1099 Or W-2 For Shareholder Employees Of S Corps?

1099 or W-2? Answer: W-2 We hear your argument: Paying wages via 1099-MISC instead of W-2 has no tax effect! Here’s the reply: It’s the law.

1099 or W-2? Answer: W-2

We hear your argument: Paying wages via 1099-MISC instead of W-2 has no tax effect!

Here’s the reply: It’s the law.

FS-2008-25 states: Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code.

Generally, an officer of a corporation is an employee of the corporation. The fact that an officer is also a shareholder does not change the requirement that payments to the corporate officer be treated as wages.

Just to be certain we looked up the IRS definition of Employee and Independent Contractor, just to make sure there wasn’t some loophole or wiggle room to argue for independent contractor status.
Read more

4 comments | Tags: ,
04 Feb 2020
Written by | Posted in 1099

1099 Or W-2 for Shareholder – Employees Of S Corps? Updated for 199A

PAUL HAMANN A

1099 or W-2? Answer: W-2

We hear your argument: Paying wages via 1099-MISC instead of W-2 has no tax effect!

Here is the law:

FS-2008-25 states: Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code.

Generally, an officer of a corporation is an employee of the corporation. The fact that an officer is also a shareholder does not change the requirement that payments to the corporate officer be treated as wages.

Just to be certain we looked up the IRS definition of Employee and Independent Contractor, just to make sure there wasn’t some loophole or wiggle room to argue for independent contractor status.

Read more

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07 Feb 2018
Written by | Posted in Business

Employee Business Expenses & Tax Reform

If you are an employee (i.e., a W-2 wage earner) with substantial work-related business expenses, the Act was not kind to you. It suspended (and effectively repealed), for 2018 through 2025, all miscellaneous itemized deductions, which were previously only subject to a floor of 2% of adjusted gross income (AGI). Employee business expenses are included in that category of miscellaneous itemized deductions.  Read more

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04 Jan 2018
Written by | Posted in Federal • Form 1099 • Tax Filing • Tax Forms

What Federal Forms Do You Need To File Taxes?

Whether you’re filing taxes yourself or having a tax preparer do them for you, it’s important to have all the necessary documents. Gathering them beforehand can save both time and frustration.

You should receive the majority of these documents by January 31, which is the new deadline for companies and employers to send out W-2 and 1099 forms. Each federal tax form is explained below so you can make sure you have everything you need to file your taxes. Read more

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25 Jan 2017
Written by | Posted in Tax Filing

Time To File Your Taxes: Tax Season Has Begun!

Kat Jennings

The start of the 2017 tax season occurred this Monday on January 23rd. (Some argue tax season never ends.) By this we mean that Monday was the first day you can officially your income tax returns. Employers have until the 31st of this month to give you your W-2 and 1099 forms. If you made income on your investments in 2016, you may have to wait until mid-February to get all of your required forms.

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19 Dec 2016
Written by | Posted in Tax Forms • United States

Employer EITC Notice To Employees – New CA Requirement!

Annette Nellen

Several states require employers to notify employees that they may be eligible for the federal (and perhaps also state) Earned Income Tax Credit (EITC). This year, California law was changed to require employers to also notify employees about the California EITC recently added to the law.

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28 Oct 2015
Written by | Posted in Tax Tips

November 2015 Individual Due Dates

Following is the tax responsibility for individuals for November, 2015.

If you are an employee who works for tips and received more than $20 in tips during October, you are required to report them to your employer on the Internal Revenue Service Form 4070 no later than November 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

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29 Sep 2015
Written by | Posted in Tax Tips

October 2015 Individual Due Dates

October 13 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 13. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

October 15 – Individuals Read more

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10 Sep 2015
Written by | Posted in Tax Credit

Claiming The Credit for Child and Dependent Care Expenses

You may be able to claim a credit for child and dependent care, if you pay someone to care for your dependent child who is under the age of 13, or for your spouse or other dependent who is not able to care for himself or herself. You must have incurred this expenditure so that you (and your spouse, if you are married) could work or look for work. If you are married, both you and your spouse must have some form of earned income, unless one spouse either was a full-time student for 5 months of the tax year, or was physically or mentally incapable of self-care.

The child and dependent care credit, which is a nonrefundable credit, is generally a percentage of the amount of the work-related child and dependent care expenses you paid to a care provider. The amount of this percentage depends on your adjusted gross Read more

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01 Sep 2015
Written by | Posted in Individual • Tax Planning

September 2015 Individual Due Dates

September 1 – 2015 Fall and 2016

Tax Planning Contact this office to schedule a consultation appointment.

September 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during August, you are required to report them to your employer on IRS Form 4070 no later than September 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected Read more

One comment | Tags: , , ,
27 Aug 2015
Written by | Posted in Individual • Tax Planning

Understanding Employer Reimbursement Plans

If your employer does not reimburse you for your work-related expenses, any allowable expense in excess of 2% of your adjusted gross income is fully deductible on Schedule A.

If your employer does reimburse you, the deductibility of the expense depends on the type of reimbursement plan you have. There are two types of employer reimbursement plans: an accountable plan and a non-accountable plan.

An accountable plan

Under an accountable plan, your employer’s reimbursement or allowance arrangement must require you to: (a) adequately account your expenses to your employer, and (b) return any excess reimbursement or allowance. Read more

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