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Tax Deadlines To Note For Year-End 2023

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Tax season is just around the corner, and for many businesses, it means filing various forms, including Forms 1099-NEC, 1099-MISC, and more.  Staying on top of these tax deadlines is crucial to avoid penalties and ensure compliance with IRS regulations. This can be a daunting time for SMBs, and staying informed is the first step to staying compliant. In this article, we’ll go into the various tax deadlines that you have to be aware of as 2023 comes to a close. Stay On Top Of These Tax Deadlines Before 2023 Ends 1. Form 1099-NEC Form 1099-NEC replaced Form 1099-MISC for reporting non-employee compensation in 2020. If your business paid at least $600 in non-employee compensation in 2023, you must issue this form to the recipients and file it with the IRS. The deadline for providing Form 1099-NEC to payees and the IRS is January 31, 2024. However, if your company has experienced a catastrophic event, you may be eligible for an extension by filing Form 8809. 2. Form 1099-MISC Form 1099-MISC is one of the most common IRS 1099 forms and is used to report miscellaneous income payments. If your business made payments of at least $600 (or $10 in royalty payments) to a payee in 2023, you are required to provide them with Form 1099-MISC by January 31, 2024. The IRS electronic filing deadline for Form 1099-MISC is April 1, 2024, unless you file a 30-day extension with Form 8809. It's important to note that some states may have earlier deadlines for 1099 reporting, so be sure to check the specific requirements for each state you operate in. 3. Form 1099-K Form 1099-K is used to report payment cards, P2P (peer-to-peer) payments, and third-party network transactions. If your business received gross payment transactions of more than $600 in 2023 through payment card networks like PayPal, Venmo, or online marketplaces, you are required to file Form 1099-K. The deadlines for Form 1099-K mirror those of Form 1099-MISC. Even states like Florida and Tennessee, which do not tax …

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Unpaid Payroll Taxes: Avoid at All Costs

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Do you pay your payroll taxes on time? In this article, we’ll define what payroll taxes are, what it means when they are unpaid, and the penalties for not paying payroll taxes on time.  What are Unpaid Payroll Taxes? Payroll taxes are the federal and state taxes that an employer deducts from employees' wages. They are a subset of employment taxes that employers pay.  When payroll taxes are “unpaid,” it means the employer neglects to pay them to the relevant tax authorities. Types of Payroll Taxes Employers need to pay many types of payroll taxes on behalf of their employees, including: Federal Income Tax Withholding: Employers have a legal obligation to subtract federal income taxes from employees' wages, which is determined by their W-4 forms and the IRS tax tables. Social Security and Medicare (FICA) Taxes: Employers have the obligation to subtract Social Security and Medicare taxes from employees' wages, along with making a matching contribution on behalf of their employees. State Income Tax Withholding: In states that have income tax, it is the duty of employers to subtract state income taxes from their employees' earnings and submit them to the state tax authority. What about FUTA? Related to payroll taxes is another type of employment tax – Federal Unemployment Tax (FUTA). Employers are required by law to contribute towards federal unemployment taxes, ensuring the availability of financial support for eligible workers during periods of unemployment. However, FUTA is not considered a payroll tax because it is not paid by employees nor is it deducted from their wages. Penalties for Unpaid Payroll Taxes Employers may face severe penalties and repercussions if they fail to pay their payroll taxes. The following consequences are associated with non-payment: Failure to Deposit Penalty: Employers who do not meet the deadline for depositing payroll taxes can incur fines that correspond to a percentage of the outstanding tax sum. The …

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