While January is a time for new beginnings, it’s also the time to start getting ahead with filing taxes for your small business, as well as for your personal income taxes. For the 2019 tax season, S-corporations have a tax deadline of March 15 to file corporate taxes, and individuals have a deadline of April 15 for personal taxes. When there is pressure to meet these federal deadlines, it can be overwhelming to get everything done on time. However, the key is to take a deep breath and focus on doing them one at a time, and you will prevail.
For small businesses that hired contractors during 2018, note that the 1099 filing deadline is January 31st. Also, if you or your business had W2 compensation, the filing deadline for W2 forms is also the end of January; correspondingly, employees must also begin their own personal taxes in January. A word to the wise for small businesses that need to send out 1099s is to do it ahead of time. Don’t wait until the last minute. It is highly recommended to follow the guidelines set forth by the IRS. I have found it helpful to send 1099 forms ahead of time to all contractors above the $600 threshold to save yourself time and stress before the tax season begins. If a contractor is on the borderline of the threshold, send it to them anyway. This simple rule of thumb will keep you from spending additional time, effort, and resources issuing individual 1099s to contractors who may ask for it later unnecessarily, because they are not tax specialists.
It is important to read and follow the IRS guidelines for issuing 1099s because there can be penalties if the form is not distributed according to federal criteria. If you are unsure of how to do this correctly or need help with 1099 filing or any other financial reporting matter, contact us at info@urbanaccountingllc.com and we will be happy to help you!
