2023 Business Tax Filing Resources

W-2 Filing

Every employer engaged in a trade or business who pays remuneration, including non-cash payments of $600 or more for the year (all amounts if any income, social security, or Medicare tax was withheld) for services performed by an employee must file a Form W-2 for each employee (even if the employee is related to the employer) from whom:

  • Income, social security, or Medicare tax was withheld
  • Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee's Withholding Allowance Certificate.

1099 Filing

If your business made payments for services performed for a trade or business by people not treated as its employees you may need to file Form 1099-MISC. Usually, businesses file Form 1099-MISC when they need to report miscellaneous income for payments of $600 by people not treated as its employees. Common 1099-MISC filing examples include:

  • Substitute dividends and tax-exempt interest payments reportable by brokers.
  • Fees to subcontractors or directors and golden parachute payments.
  • Fish purchases paid in cash for resale.
  • Gross proceeds paid to attorneys.
  • Crop insurance proceeds.

W-2 & 1099 Requirements

E-File Threshold

Important Update: The IRS released final regulations lowering the threshold for having to electronically file (e-file) forms from 250 to 10. This new regulation includes the total of all aggregated forms filed

Important Update: On February 23, 2023, the IRS released final regulations that lowers the e-file threshold for certain information returns from 250 returns to 10 returns for calendar year 2023 (filed in 2024). This regulation includes the total for all aggregated forms filed. This is expected to have a major impact on businesses. See below for more information.

Other provisions in the regulations include the following:

  • Forms included in threshold change: 1042-S, 1094 series, 1095-B, 1095-C, 1098, 1098-E, 1098-T, 1099 series, 5498 series, 8027, W-2G, W-2, 499R-2/W-2PR, W-2VI, W-2GU, W-2AS, 1098-C, 1098-Q, 3921, 3922, 1097-BTC
  • The e-file threshold no longer applies per form type, but rather filers that have a combined total of 10 or more information returns (see above applicable forms) are required to electronically file all information returns. (Corrections do not count when totaling the number of forms to file.)
  • Partnerships with more than 100 partners must file information returns electronically regardless of the number of information returns to be filed.
  • Corrections must be filed in the same manner that the originals are filed, and penalties will be imposed for failure to file a correction in the same manner as the original was filed.
  • The e-file threshold is officially lowered to 10 forms for certain filers beginning in 2024.
  • Complete details of the new regulations are available at federalregister.gov

Federal Transmittal

In addition, you may be required to file a transmittal (cover sheet). W-2 paper copies will need to include Form W-3 while 1099-MISC paper copies will need to include Form 1096. It should be noted that transmittal forms are not required if filing electronically.

W-2 & 1099 Copies

Copy A For Social Security Administration

Copy B Filed with Employee's Federal Tax Return

Copy C For Employee's Records

Copy D For Employer

Copy 1 For State, City, Local Department

Copy 2 Filed with Employee's State, City, Local Income Tax Return

The Internal Revenue Service (IRS) and Social Security Administration (SSA) require only four parts for Form W-2. Most states with State Income Tax Programs require a 6-part form. In states where there are Local or City Tx Programs, an 8-part set is required.

You are generally required to send 2023 W-2 Wage an Tax Statement forms to the Social Security Administration by January 31, 2024, whether you file using paper forms or electronically.

For optical scanning purposes, the Federal Government requires that all forms W-2 be submitted in 11 inch segments (two W-2 forms per page) to the Social Security Administration.

We include the applicable summary transmittal form (when required) on all W-2 and 1099 form orders

If you are required to file 10 or more information returns, you must file electronically. If filing electronically is a hardship, you can file Form 8508 requesting a waiver. Penalties could be charged if extensions and/or waivers are not obtained. Even though you may not be required to file electronically, the IRS and SSA encourage anyone to file in this format. You can download Form 8508 at www.irs.gov. Do not forget that you will still need to provide required forms to employees and contractors

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