Category: Tips for Small Business (page 2 of 2)

Form 1094-B

The IRS has released final Forms 1094 – B and 1095-B and accompanying instructions for 2015.

The 2015 forms will be used for mandatory filings first required in early 2016 to enforce Code 4980H; employer penalties, as well as individual mandate tax credit eligibility rules.

1094-B  FullSizeRender

By January 31, 2016, health coverage providers should furnish a copy of Form 1095-B, to you if you are identified as the “responsible individual” on the form.

Form 1095-B, Health Coverage, is used to report certain information to the IRS and to taxpayers about individuals who are covered by minimum essential coverage and therefore aren’t liable for the individual shared responsibility payment.

Minimum essential coverage includes government-sponsored programs, eligible employer-sponsored plans, individual market plans, and other coverage the Department of Health and Human Services designates as minimum essential coverage.


What is the deadline for filing my business income tax returns?

Your annual corporate income tax returns are due on March 15th for calendar year filers. Otherwise you will need to file your tax return by the 15th day of the second month after the close of your fiscal year (year ending on a date other than December 31st).

Please note: You may request a six month extension to file your income tax returns but the extension must be postmarked by the above referenced dates.
Other important dates to keep in mind:
To Be Filed Due Dates
Partnership Tax Returns April 15th
Sole-Proprietors April 15th
IRS Employer Payroll Returns January 31st, April 30th, July 31st, October 31st
NYS Employer Payroll Returns January 31st, April 30th, July 31st, October 31st
NYS Sales Tax Returns March 20th, June 20th, September 20th, December 20th
NJ Sales Tax Returns January 20th, April 20th, July 20th, October 20th


Do I give my assistant a 1099-Misc at the end of the year?

I hired an assistant recently to work in my office. Do I give the individual a 1099-Misc at the end of the year?

When you hire someone to work for you, that individual will either be classified as an employee or independent contractor for tax purposes. Failure to properly classify the worker can subject you to an IRS audit and possibly hefty interest and penalties amounts for failing to withhold and deposit payroll taxes.

Some factors to take into consideration to identify an independent contractor:

  • Is the worker an integral part of the business?
  • Does the worker supply his/her own equipment, materials, and tools?
  • Are all necessary materials to complete the work supplied by the employer?
  • Does the worker control his/her own hours of employment?
  • Is the work is temporary or permanent?

For more information to properly classify an individual as an employee or independent contractor, review IRS Publication 1779.

Are there any recent legislation changes that will also affect my business?

Yes there are two that you should take note of:

  •  You are now required to report payments to all individuals and businesses over $600 during the calendar year on Form 1099 (previously required only for non-corporate).
  • Starting in 2013, employers will be required to withhold an additional .9% of Medicare tax on employee wages in excess of $200,000. And certain individuals will owe a 3.8 % unearned income Medicare contribution tax on net investment income.

How will the new Health Care Reform affect my business?

The recent health care legislation of 2010 will impact your business. There are many complex rules and exceptions that you should be aware of:

  •  It does not require employers to provide health care coverage to employees but does include “Play or Pay” language.
  • It creates a Small Business Health Options Program (SHOP exchange) that smaller businesses can use to buy health insurance coverage.
  • For 2010 through 2013, there is a Small Employer Health Insurance Tax Credit (for businesses with 25 or fewer full-time employees) of up to 35% of the employers’ contribution towards employees’ coverage.
  • Larger employers (average of at least 50 full-time employees) that fail to provide adequate minimum essential health care coverage will be subject to a penalty.
  • Employers with more than 200 full-time employees will be required to automatically enroll employees in its health insurance plan.
  • Many employers providing coverage will be required to file information about their coverage with the IRS.
  • Health insurance costs must be reported on employees’ W-2 forms.
  • It imposes new restrictions on FSA’s, HRA’s, HSA’s and Archer MSA’s.

For more information about your eligibility for the Small Business Health Care Tax Credit visit the IRS.

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