Year End Reporting Requirements

As we head toward the end of the calendar year, we like to remind businesses of some of the more obscure requirements they face in year-end reporting. These are things you don't want to miss, or you risk exposing yourself to potential penalties.

1. 1099's: Generally, you must issue a 1099-MISC to individuals or unincorporated businesses who you paid more than $600 in rent or services during the year. A 1099-INT should be issued for interest or dividends paid in excess of $10.

2. Employer-provided vehicles: If employees (including owners!) are allowed to use a company vehicle for any personal use, the value of that use must be included in the employee's W-2 at the end of the year. We can calculate the inclusion amount for you; just use our form to send us the information.

3. Fringe benefits to owners: If an S-corporation shareholder receives certain fringe benefits, such as health or disability insurance, the amount must be included on their W-2.

4. Group life insurance: If you provide more than $50,000 of group term life insurance to an employee (again, including owners), there's a small amount that should be added to the employee's W-2.

This is just intended to be a heads-up to help you remember these requirements. If you need help with any of these calculations, please give us a call!