We are almost three weeks into the new year already and the clock is ticking for a variety of payroll tax filing items to be completed.
As of January 15th, you will have already taken care of Social Security and Medicare, and withheld income tax. And remember, if the monthly deposit rule applies, you will have deposited the tax for payments in December 2014.
In addition, there are also some other types of payments your business might make that require you to withhold income taxes and report and pay those taxes to the IRS. The IRS calls these "non-payroll income tax withholding." If you have any of these payments and the monthly deposit rule applies, as of January 5th, you should have already deposited the tax for payments in December 2014.
Payroll Tax Filing Reminders For February 2015
If you are already making use of a comprehensive payroll calendar system, these items will already be noted there for you. However, if that is a tool you are not yet using effectively, this list covers keys tasks that must be completed per the IRS in February:
Important Tasks for February
- Give your employees their copies of Form W-2 for 2014 by February 2, 2015. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee by February 2, 2015.
- Give annual information statements to recipients of 1099 payments made during 2014.
- Federal unemployment tax: File Form 940 for 2014. If your un-deposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you already deposited the tax for the year in full and on time, you have until February 10th to file the return.
- Social Security, Medicare, and withheld income tax: File Form 941 for the fourth quarter of 2014. Deposit any un-deposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until February 10ti to file the return.
- Non-payroll taxes. File Form 945 to report income tax withheld for 2014 on all non-payroll items, including backup withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any un-deposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 10 to file the return.
- For Certain Small Employers, you must file Form 944 to report Social Security and Medicare taxes and withheld income tax for 2014. Deposit or pay any un-deposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more from 2014 but less than $2,500 for the fourth quarter, deposit any un-deposited tax or pay it in full with a timely filed return.
- Give annual information statements to recipients of certain payments you made during 2014. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient.
Don't forget the Forms 1099
Forms 1099-B, 1099-S, and certain reporting on Form 1099-MISC, Miscellaneous Income, are due to recipients by February 17.
Payments that may be covered include the following:
- Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish.Compensation for workers who are not considered employees (including fishing boat proceeds to crew members).
- Dividends and other corporate distributions.
- Payments of Indian gaming profits to tribal members.
- Profit-sharing distributions.
- Retirement plan distributions.
- Original issue discount.
- Prizes and awards.
- Medical and health care payments.
- Debt cancellation (treated as payment to debtor).
- Cash payments over $10,000. See the instructions for Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.
Staying on top of it all
Payroll tax and business tax management is truly a year-round function and having the proper tools and resources are critical to maintaining accuracy and timeliness. In addition, outsourcing some or all of your payroll management functions can be cost-effective and free up valuable time and resources for you.
Professional agencies such a Accuchex can provide much-needed help with Human Resources needs and questions. Accuchex is a full spectrum Payroll Management Services provider offering expertise in Time Management, Insurance and Retirement issues, as well.
If you are looking for reliable help with your payroll tax filing process, we can help. You can get your Free Download: Payroll Outsourcing Guide to help you make an informed decision, or call Accuchex Payroll Management Services at 877-422-2824.