Monday, 21 January 2019

This Years' Tax Deadline for Your 1099 Form is Here!

This Years' Tax Deadline for Your 1099 Form is Here!
The deadline for your trucking tax forms is almost here! As the owner of a trucking business, you have to make sure your 1099-MISC Forms are filed by January 31st! The differences between the IRS W-2 and 1099 tax form can be confusing to some business owners, but it is important to know.

Employers must report their employee wages and other compensation on IRS Form W-2. If you use freelance drivers or other contracted workers in your trucking fleet, you have to report these payments using IRS Form 1099-MISC.

Knowing the difference between these forms and filing them on time is very important for you and anyone you pay during the tax season. The smallest mistake could result in extra hassle and even fines for you and your employees.

Form 1099-MISC - Is This the Form You Need?

IRS 1099-MISC is a tax return form for reporting payments made to miscellaneous workers during the tax season. You'll need to file this form for everyone you’ve paid who isn't an actual employee of your company. This includes any independent contractor or subcontractor that they may have hired on your behalf.

Below is a list of services, incomes, and expenses for which you will need to file an IRS Form 1099-MISC. If you’ve paid any of these during the tax season, you must file a separate 1099-MISC form for each.
  • Paid $600 or more in services, lodging, and other expenses? File the 1099-MISC. 
  • Withheld federal income tax from under the backup withholding rules? File a 1099-MISC for each worker. 
  • Paid $10 or more in royalties or broker payments instead of tax-exempt interest dividends? File a 1099-MISC. 
  • Paid for an attorney or other legal consultants? That’s a 1099-MISC. 
  • Sold any consumer products resulting in an income of $5,000 or more anywhere that wasn’t a permanent retail establishment? You guessed it - you’’ have to file a 1099-MISC for that too. 

There ARE some expenses that you DO NOT need to report on your Form 1099-MISC this tax season, including:

  • Any non-reportable payments made to corporations, excluding legal consultants such as attorneys. You must provide any paid legal professionals with a Form 1099-MISC regardless of their current corporate status. 
  • Income paid to tax-exempt organizations in the U.S, the District of Columbia, U.S. possessions, or foreign governments. 
  • Any payments made to official employees of your company - they'll need that W-2. 

Form W-2 - Why You Need It

This Years' Tax Deadline for Your 1099 Form is Here!
Here’s an in-depth look at the IRS Form W-2 and what’s required of you as the employer.

IRS Form W-2 is a tax reporting statement that you issue to each of your official employees every year. It is necessary for reporting salaries and other fees paid to employees the tax season. Both the IRS and SSA (Social Security Administration) need copies of the W-2 for every official member of your trucking fleet. These forms are as important for you as they are for your employees and their own tax filings. Your drivers each need the IRS W-2 Form to report income and taxes withheld to complete their own tax returns.

Filing your 1099 MISC or W-2 Form 2018 late or incorrectly could cost you and your employees time and money. Missing the W-2 deadline results in a $30 fine for each form unfiled, rising to $60 per form with a top fine of $500 after 30 days! Definitely, something you’ll want to avoid.

Make a mistake? Not a problem! Luckily you can use an IRS Form W-2c to make any necessary corrections.

But hurry - You have to file this form as soon as you discover the error. And don't forget that you also need to send copies of the corrected W-2 Forms to each employee for their own taxes after.

File Your Taxes Today!







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