Year-End Reminders

As 2018 nears its end, SBAI Group wants to thank you for the opportunity to partner with you in support of your growing business. If we haven’t had the pleasure of working with you yet, we look forward to doing so. We’d also like to highlight a few important year-end reminders to ensure a smooth wrap-up to the year’s activities.

PAYROLL

The final payrolls should be processed by now. Have you reported all voided checks and any compensation adjustments? Any bonuses paid to your employees can be processed separate from your regular payroll. Bonus checks may need to be handled differently than regular checks – for example, taxes withheld may differ.

Penalties of up to $260 for each Form W-2 that has a missing or incorrect social security number or federal employer identification number may be assessed by the IRS. A quick review of your payroll records will prevent this costly omission.

This is also a good time to ensure that your employees have reported any name and address changes and your company records are updated. The filing deadline for Form W-2 is January 31, 2019.

Are you behind on payroll compliance? We can help! Please reach out to us and let’s discuss the plan to get your entity in compliance.

NONEMPLOYEE COMPENSATION

Form 1099-MISC is commonly issued to vendors and independent contractors for Box 7 Nonemployee Compensation. Did you know that you also need to issue a form for rent payments? The filing deadline for these types of 2018 payments on Form 1099-MISC and the associated Form 1096 is January 31, 2019.

Are you confused on how to properly categorize a worker as an employee or an independent contractor? The rules are specific and have recently changed, especially in California. We can help you with the new “ABC Test” for independent contractor classification.

Let’s close the year strong!