Employment Tax Services: Upcoming filing issues to note

Immediate Time Sensitive Employment Tax Issues As companies are preparing to issue W-2's or 1099 forms, many employment tax issues and questions can arise. We realize that these issues, which can be simple clarification of payroll tax form instructions or complex interpretation of employment tax policies and procedures for which no definitive guidance exists, can have a significant impact on your internal and external reporting and compliance procedures.

The following is a small sample of frequently asked questions:
  • How do I report my employment taxes for the year if I had an acquisition?
  • Can you assist in reconciling my W-3 to the 941?
  • What are the withholding regulations on deferred compensation payments?
  • What are my options if I failed to check the correct box on Form W-2?
  • Do I issue a W-2 or 1099?
  • Can you assist in responding to an IRS/SSA notice?

Tax consulting and compliance In-depth and detailed knowledge of the federal and state employment tax laws can lead to the treatment of certain payments made to employees as non-taxable for employment tax purposes. Additionally, such consulting can lead to reduced employment tax exposure or assessments.

Frequent concerns in this area include:

  • Federal Forms W-2, Wage and Tax Statement and 1099, Miscellaneous Income;
  • Other payroll tax forms (e.g., 940, 941, W-4, W-5, unemployment tax quarterly contribution reports);
  • FICA, FUTA and income tax withholding issues;
  • State unemployment tax issues;
  • Types of deductions from pay (e.g., wage assignment, garnishments);
  • Independent contractor classification
  • Stock options/stock based compensation
  • Moving/traveling expenses
  • Multistate/interstate employment
  • Nonresident alien reporting
  • Business expense reimbursements
  • Severance pay/separation pay
  • Taxability of fringe benefits

Important Dates

February 1, 2016
  • Forms W-2 due to employees
  • Forms 1099 due to vendors and contractors
  • Fourth Quarter 941 Return to IRS
  • Annual 940 (FUTA) Return to IRS
  • Fourth Quarter State Unemployment Returns
  • Certain State Annual Reconciliation Returns

February 15, 2016
  • Certain State Annual Reconciliation Returns

February 29, 2016
  • Paper Forms W-2 to SSA
  • Paper Forms 1099 to IRS
  • Certain State Annual Reconciliation Returns

March 15, 2016
  • Certain State Annual Reconciliation Returns

March 31, 2016
  • Electronic Forms W-2 due to SSA
  • Electronic Forms 1099 due to IRS
  • Certain State Annual Reconciliation Returns

Contact Hal Bellovin
Director, Iselin, NJ
T +1 732 516 7600

Albert Arazi
Senior Associate, NY, NY
T +1 212 542 9630

Bob Woodall
Director, Irvine, CA
T +1 949 878 3350

Tom LeClair
Manager, Chicago, IL
T +1 312 602 9098

Tax professional standards statement
This document supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the subject of this document we encourage you to contact us or an independent tax advisor to discuss the potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this document may be considered to contain written tax advice, any written advice contained in, forwarded with, or attached to this document is not intended by Grant Thornton to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.