Exceptions to the 1099-NEC
There are 11 exceptions listed by the IRS that are not to be filed using 1099-NEC. The renewed 1099-NEC and accompanying 1099-MISC form changes may make your 2020 tax year filing a bit different than past years. We’ve discussed the dos and don’ts of filing the 1099-NEC as well as federal and state filing, and…
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Types of 1098s and When to Use Them
There are close to 1,000 forms related to federal income taxes, and seven different types of 1098 forms. There are seven different types of 1098 forms, each with a different purpose and importance. Let’s run through each form and what they’re used for. 1098 This form is a Mortgage Interest Statement. Your mortgage company will…
1099-MISC and 1099-NEC Mistakes and How to Avoid Them
With the introductions of the 1099-NEC for the 2020 tax year, there are many common 1099 filing mistakes, but they can be easily avoided with some research and planning. 1099-MISC and 1099-NEC Common Mistakes One of the common mistakes that we’ll see a lot next year is the confusion about which 1099 form to use,…
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Answers to your ACA compliance questions
2020 is an uncertain year, with continued wrestling over healthcare policies. The election adds an extra layer of uncertainty. ACA compliance is constantly shifting and developing, and each year seems to present a new requirement to understand. If ACA compliance is not met when filing information returns, you may find yourself at the end of…
5 mistakes that could get you ACA penalties
If you are an Applicable Large Employer (ALE), or a company that employs 50 or more full-time or full-time equivalent employees, then you are required to offer 95 percent of the workforce and dependents Minimum Essential Coverage (MEC) that meets Minimum Value (MV). This is known as the ACA Employer Mandate. When the ACA Employer…
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How to deliver 1099 forms to recipients
If you’re a larger business, the tax filing season can be a stressful time of year. You have many forms to deliver and need to make sure everything is completed accurately. For companies that pay additional compensation apart from typical wages or salary payments, a 1099 form is required in order to report income to…
How to avoid penalties on 1099-MISC forms
For every employee and nonemployee that an employer hires and pays compensation outside of the usual wage or salary, a 1099-MISC form must be completed. The 1099-MISC form reports income earned by independent contractors, self-employed, government payments, interest and dividends, debt cancellations, and retirement account withdrawals. The IRS also requires nonprofit organizations, trusts, cooperatives, and…