The month of January just got busier due to the recent change in federal and state due dates. Now we must file the form 1099’s and W-2’s with the tax agencies by January 31, 2017. To avoid any late filing penalties, please start to gather your information now to be sure your records reflect the correct names, addresses, and identification numbers for your employees and vendors.
- Send Form W-9 to all your vendors whom you paid $600.00 or more for services, rent, non-employee compensation, commissions, prizes, and awards; and $10.00 or more for interest.
- Verify all employees complete name, address, and social security number.
You should confirm with your current employees that their payroll tax designations (such as marital status, dependents and allowances) are up-to-date for 2017. Provide them with Form W-4 and Wisconsin Form WT-4 or Minnesota Form W-4MN if they need to make changes. Be sure to update your state unemployment rate before the first payroll in 2017.
This is a great opportunity to get your QuickBooks data ready for tax time. We have compiled a list of items to assist you with your recordkeeping maintenance.
- Review your accounting records to confirm that your prior year’s balances agree with the prior year’s financial or tax return final balances.
- Review your accounting records to confirm that your current year account balances are accurate, such as:
- Prepare bank reconciliations on all cash accounts.
- Review the Accounts Receivable list and write-off any uncollectible accounts.
- Take a physical inventory.
- Review the fixed asset accounts, provide copies of invoices for acquisitions, and identify any sold, traded, or junked assets.
- Compile the Accounts Payable list of unpaid bills.
- Prepare reconciliations on all credit card accounts.
- Review payroll tax and sales tax liability accounts to confirm the tax due amounts.
- Compare your loan account balances to the lender’s records.