Would you be ready if your business was one of the 6,000 companies expected to be randomly chosen for employment tax audits beginning this February? As you wrap up 2009 payroll reporting, taking time to review your policies and procedures can save headaches down the road. Here are tips. - Reconcile quarterly and annual figures. Tie the wages you reported during the year on quarterly state and federal payroll tax returns to the total reported on "Form W-3, Transmittal of Wage and Tax Statements."
In addition, whether you file electronically or on paper, the total of individual Forms W-2 must agree with Form W-3. - File all necessary returns. Remember those returns that are due only once a year, such as Form 940, used to report federal unemployment tax, or Forms 1099, for independent contractors and other vendors.
Do you file Form 944, the annual employment tax return? You're required to complete the form even if you paid no wages during the year. - File on time. Forms W-2 are due to your employees by February 1, 2010, and to the Social Security administration by March 1 (March 31 if you file electronically). Quarterly and annual federal payroll returns are generally due by February 1.
For any filing assistance you need, please contact our office.Posted 1/11/10
Contact Jim Komos of Ciuni & Panichi at 216.831.7171 or jkomos@cp-advisors.com if you would like additional information on taxes and your business.
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